Union Minister of State (MoS) for Micro, Small and Medium Enterprises (MSMEs) Haribhai Parthibhai Chaudhary has said China is giving subsidies to its industries in an irrational way, due to which their goods are cheaper than Indian goods.
The minister was responding to a question in the Lok Sabha while he concerned over the loss incurred by Indian MSMEs due to the cheap imports from China.
MSMEs in India have been battling a long, and seemingly endless, fight against cheap imported goods from countries like Vietnam, Bangladesh and, especially, China. The imported goods are sold in Indian market at much lower rate than what is offered by the small scale industries here. Hence the preferred choice of the buyers becomes the cheap imported stock and makes the task difficult for MSMEs to put together any sale. Despite government’s continuous efforts, small industry players have yet not been able to conclude any solution to it.
The MoS also said in his reply that Indian MSME units are lagging behind in the race against multinational companies due to various major external and internal hurdles in the market.