New Delhi: Indian markets flooded with an array of Chinese colored powder and squirt guns leaving a shadow of gloom for SMEs. The Dispatch News Desk (DND) reports.
Holi may not be celebrated in China, but it is celebration times for Chinese exporters as the Indian markets are flooded with an array of Chinese colored powder and squirt guns leaving a shadow of gloom for Small and Medium Enterprises (SMEs) of India. According to an estimate of apex industry body ASSOCHAM, it has resulted in attrition in small and medium industries (SMEs) at over 75 % ahead of the India’s biggest festival ‘Holi’.
A sharp decline in SME units is forcing widespread job losses in the sector estimated to be over 8-10 Lakhs people, reveals ASSOCHAM in a survey of SME units who are reeling under onslaught from China. The survey further reveals that apart from full time and part time workers who have lost their livelihood, even the owners of SMEs have continued to lose the business with loss of capital and even indebted to bankers and money lenders creating further pain for them.
“For the past 5 years, the business of local sprinklers is decreasing due to stiff competition with Chinese sprinklers. They are facing huge loss, from small plastic sprinklers to colourful perfumed sprays made in China are available in the market”, said a local manufacturer and trader of sprinklers.“At present, only 12% of the total produced sprinklers have been sold and we still have to meet the cost of manufacturing”, added the manufactures.
“Items which can be easily manufactured here with the zero technology should be discouraged through restrictions on imports,” said D S Rawat, Secretary General ASSOCHAM. “Nearly 1,000 SMES units have closed so far in the last 2-3 years with the rise in imports from China.
Growing at a compounded annual growth rate (CAGR) of about 20 %, the Holi colour and accessories industry is likely to reach Rs 15,000 crore this year, according to apex industry body ASSOCHAM. Last year, the Holi colours and accessories industry was about Rs 12,000 crore.
The Holi accessory industry consisting of water guns, water balloons, cannons and toys is likely to reach Rs 10,000 crore this year and herbal & perfumed colours industry is also likely to touch Rs 5,000 crore this Holi.
