Last year due to the LAC issue with China, Indian government has restricted many items import from China through BIS and other regulations and imposed anti-dumping duty too on several products to help local manufacturers and Industries and crating economic pressure on Chinese government.
Does it Really helped?
The answer is yes, but in some way such as reduction in imports of electronic goods and equipment and starting their productions in India.
But some Products such as glass products, i.e., window glass (sheet glass), float glass, safety glass, glass mirrors including rear-view mirrors from Bangladesh and bicycle parts and components are still freely coming in India in cheap value from Bangladesh and Sri Lanka both countries.
The reason behind.
The Indian government has signed a free trade agreement (FTA) with Sri Lanka and Bangladesh, for many items from these Saarc region countries to allowing preferential import duties in India.
Now due to the several restrictions from government on import of Chinese products in India and rejection of Chinese products by Indian citizens, the Chinese has found new route through neighboring countries of India to dump their products in Indian market, such as Bangladesh and Sri Lanka.
Recently there were talking’s in Exim trade that the major Chinese manufacturers are establishing their plants in other nearby countries of India i.e., Thailand, Malaysia. Indonesia, Myanmar, Vietnam, Bangladesh, and Sri Lanka. And those who cannot make their real productions are sending their products in India via these Countries through the local traders in said countries.
The Benefit for China.
The Chinses knows that the India has South Asia Free Trade Agreement (SAFTA) with the Bangladesh and Sri Lanka, and they can send their products in Indian market in cheap value with the help of duty-free trade agreement and change their origin to confuse Indian consumers too.
There is several news in trade that Bangladesh is dumping the China Manufactured “Float glass” which are mostly used in automobile and solar industries in very cheap value and low quality with the help of the SAFTA benefit.
The Increase in Import of Bicycle and its parts and components from Bangladesh and Sri Lanka are also damaging the local MSME manufactures and Its industries.
Solution to the Problem
The basic solution to this problem is changing of low-price product choice by Indians, The Government is abided with world trade rules, and they have to look in these with several diplomatic ways which may take time, But if we start searching for Indian Manufactured or Good quality Products, and change our low cost and quality compromising mentality then it will force the Indian importers and manufactures in same way.
Your small suggestion could be the first step in big revolution, don’t forget to share it in comment section.
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