Friendly Side of the Dragon ; There's Growing Evidence That Imports From China May Actually Be Helping the Indian Industry Big and Small in Manufacturing Better Quality Products or Products They Earlier Couldn't Make.

Summary

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At first, they came as unbranded toys, stuff that is the dream of every child and the child in every man. Battery-powered racing cars, miniature trains that ran on tracks, bears that sang Macarena, telescopes and all at throwaway prices that middle class Indians could afford, but had never even seen in their neighbourhood shop. Then they came as a tide of freebies like cameras that FMCG majors give away with their products, and even as Diwali lights and furniture.

Cheap. Capacities. Magnets that drew the Big Boys to the party. In the ensuing rush from Chandni Chowk to China, every business worth its margins headed north to build up sourcing lines for everything from motorcycle and shoe parts to giant boilers for power projects.

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Extract

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Friendly Side of the Dragon ; There's Growing Evidence That Imports From China May Actually Be Helping the Indian Industry Big and Small in Manufacturing Better Quality Products or Products They Earlier Couldn't Make.

Where it hurts

Possible dumping by China - especially given the global economic meltdown

Trade deficit with China is widening as exports languish

Doubts over quality of products

China became the largest source of Indian imports, overtaking the US, and bilateral trade grew 33 per cent in 2008 over the previous year, to nearly $52 billion, despite the economic slowdown. Imports from China almost doubled to $24.16 billion in April-December 2008- 09 over the comparable period of 2006-07, and now account for a little over 10 per cent of Ind...

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