Industry urge Centre to set up high-level committee to curb import of spurious products and undervalued products

Ludhiana, January 2, 2024: Upkar Singh Ahuja, President of CICU in a statement mentioned that the industry is facing huge challenges due to under invoiced Products, spurious parts mainly in Textiles and Garments, Bicycles and components, Sewing Machines, Auto Parts, CNC Machines Parts, EV Parts etc. These parts are mainly being manufactured by MSME in the Country. Even products with registered brands and intellectual property registration are being imported by India whereas Indian Customs department fails to curb the same.

The bilateral trade between India and China has grown four-fold in the past decade. Whereas rising imports and falling exports is the matter of prime concern. We see the import trends from China- to India, this stood at US$ 98.50 billion in FY23 and US$ 94.57 billion in FY22 as compared to about US$ 65.21 billion in FY21.

As per data available, bilateral trade between India and China in FY23 stood at US$ 113.83 billion. India’s export to China stood at US$ 15.33 billion in FY23 whereas Imports from China to India stood at US$ 98.50 billion. Moreover, prices of products imported are under-invoiced. We can judge from mobile phone companies where a few months back Anti-smuggling Directorate of Revenue Intelligence raided major Chinese Mobile Phone manufactured regarding hidden income and tax avoidance. This raises a question mark on the transparency on the trade between some Chinese and Indian companies.

Though, there is a tool of entry dumping duty to discourage the exporting countries from dumping their products which are priced below fair market value. Objective of the anti-dumping duty is to protect domestic industry from unfair competition. But, it is very difficult for the MSME Industry to collect all such information and data and then file the probe requests to GOI for such dumping.

Indian steel industry recently demanded safeguard duty on steel due to spur in import from china at 4.3 Million ton from April to November one of every three shipments coming from china, steel Maker lobby is strong and they are able to get policies amended as suitable to them and are benefitted whereas MSME is Neglected, if the demand is met steel prices will go up and msme will be loser in both the way  ,MSME demand similar trade Barriers for manufacturing sector as well.
In the last Union Budget Govt. declared to impose around 4000 quality gates where under-quality products can be stopped but for MSME this does not seem to be a sure-shot solution.

CICU President in his letter to the Prime Minister's Office, Finance Minister and MSME Minister to form a high-level Committee to curb this unethical practice and save MSME from being ruined.