China imports losing ground in India

Discussion in 'Economy & Infrastructure' started by JAYRAM, May 11, 2012.

  1. JAYRAM

    JAYRAM 2 STRIKE CORPS Senior Member

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    TNN | May 10, 2012, 04.04AM IST

    MUMBAI: The share of 'Made in China' goods in India's consumption economy has eased as the dragon struggles to keep its cost-competitive manufacturing story going. China's overwhelming grip over supplies of stationary products, fabrics, toys and lighting products started loosening over the past year.

    Consider this: ITC sourced 100% of its stationery products like pencils, geometry boxes and scholastic products marketed under Classmate brand from China. But imports will fall below 10% this year as the Indian behemoth moves sourcing back to India in a big way.

    Chinese products had over 70% share of the domestic toy market, which is falling to about 50%. Fabric sourcing from China by the local garment makers declined 10% in the last 12 months. It's share of the lighting sector - where the market for CFL bulbs was mostly developed by Chinese imports a decade ago -has dropped to 15% from over 50% in 2007. Indian manufacturers are sighting gains even as China's factory prowess weakens on the back of an appreciating yuan, rising inflation and soaring wages in the wake of labour reforms in recent past.
    Indian companies are bringing production back home, or taking it to other competitive markets - part of a broader global phenomenon playing out for almost two years now. "We are developing vendors here now for all our products which we were earlier importing.

    Imports will now be restricted to select premium products. China used to cater to the world's stationery requirement. Now, some of it will come to India. It is already moving into Vietnam," said Chand Das, chief executive of ITC's education and stationery products business.

    China's discomforts present a significant opportunity for local manufacturers to serve a robust domestic demand as well as book a pie of the global sourcing from transnational corporations. Funskool, India's leading toy company, has been approached by global biggies to source production from its Goa plant to offset rising costs in China. "All the big players are looking at India for manufacturing support. While Indonesia has already got many orders, some are expected to come to India as well," said John Baby, CEO, Funskool (India), a joint venture between MRF and Hasbro of USA. "Two to three companies have approached us and are doing audits at our factory. We will be able to add capacity if we get these orders," said Baby.

    The story is similar for the lighting industry where the Chinese glow is dimming fast. The 350-million-unit CFL bulb market in India has witnessed dwindling share of imports from the neighbouring giant. The evolution of the lighting industry in the past decade, from incandescent light bulbs, which did not require much of electronics, to LED lamps, which are entirely made from electronic ballast technology, has encouraged indigenization of the lighting industry.

    "Chinese CFLs initially flooded the Indian market. But eventually they failed to create an impact because they couldn't meet Indian market conditions where power situation varies in different parts of the country," said Arun Gupta, managing director, NTL Electronics India, one of the largest electronic manufacturing companies in lighting in India. Gupta also argued that electronics, driven by intellectual properties, has become the backbone of lighting industry, where China has lagged behind.

    But Chinese supplies have made inroads into India's infrastructure and capital goods industry at a time when its hold over the consumer products market has weakened. Anil Ambani's Reliance Group, for instance, has struck major equipment sourcing contracts in China for its power and telecom businesses in return for cheaper loans. Chinese equipment makers have also backed telcos like Bharti Airtel in their recent 4G roll-outs.

    China imports losing ground in India - The Times of India
     
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  3. lcatejas

    lcatejas Regular Member

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    Good News ! Its good that we are getting rid of made in china .. garbage products...:cool2:
     
  4. Yusuf

    Yusuf GUARDIAN Administrator

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    Fan bloody tastic news.
     
  5. nitesh

    nitesh Mob Control Manager Stars and Ambassadors

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    The problem is quality after sales support, and yes the imports are decresing at a steady pace. This news re confirms what we were seeing on the ground.
     
  6. kickok1975

    kickok1975 Stars and Ambassadors Stars and Ambassadors

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    China's export only grow 4% in April compare to last year, one of the slowest growth rate recently. Trading is losing its steam and China can no longer grow out of her way from foreign trading. It's time to move direction from outside to inside.
     
  7. Yusuf

    Yusuf GUARDIAN Administrator

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    Yeah the bloody labor costs in China should rise. People importing cheap useless junk give me a tough time when i go out to sell my quality made in Taiwan stuff where the price difference is 40-50%!!
     
  8. nitesh

    nitesh Mob Control Manager Stars and Ambassadors

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    Consumption based growth :D
     
  9. Yusuf

    Yusuf GUARDIAN Administrator

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    India has been doing that for the last two decades.
     
  10. Illusive

    Illusive Senior Member Senior Member

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    I think China is in the right direction, they are industrialized and they can consume their own made stuff, while we have'nt had industrial revolution but still are having a consumption based growth. But nowdays i see more industries being setup, cause we realize its the most important part for a potentially big economy to be self sufficient.

    Every big economies have had industrial revolution, glad its finally coming to ours.
     
  11. Sunder singh

    Sunder singh Regular Member

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    FROM NAINITAL NOW IN CHENNAI
    even today their is huge trade gap favouring china we must incresase tax
     
  12. sesha_maruthi27

    sesha_maruthi27 Senior Member Senior Member

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    GOOD NEWS..........

    Why rely on someone else when we ourselves have the power to do it.........
     
  13. ice berg

    ice berg Senior Member Senior Member

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    I remember once upon time made in Taiwan was considered useless junk. :scared1:
     
  14. Yusuf

    Yusuf GUARDIAN Administrator

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    Never in India. It was always looked upon with high regards.
     
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  15. badguy2000

    badguy2000 Respected Member Senior Member

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    the report overrates the meaning of CHinese export ot India.

    2011.China's total export is nearly 1.9 trillion USD while CHina's export to India is only 0.05 trillion USD.......
     
  16. cir

    cir Senior Member Senior Member

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    Indians should worry more about their own sh1ty economic performance than taking pleasure from China's slowdown:

    Industrial production dips by 3.5% in March :rofl:

    Last updated on: May 11, 2012 12:25 IST

    Indicating sharp slowdown in the economy, industrial production declined by 3.5 per cent in March mainly on account of contraction in manufacturing and mining output.

    Growth in the factory output, as measured by the Index of Industrial Production, was higher at 9.4 per cent in March last year.

    The industrial production has been dismal at 2.8 per cent in 2011-12 as compared to 8.2 per cent in previous fiscal.

    Output of the manufacturing sector, which constitutes over 75 per cent of the index, contracted by 4.4 per cent in March, compared to growth of 11 per cent in March 2011.

    Industrial production dips by 3.5% in March - Rediff.com Business

    While China might be slowing down a bit,its industrial output is still expanding over 10% y-o-y,with 2012 GDP growth predicted to be circa 8.5%。

    The same can't be said about India, which will see sub 6% growth in its GDP for FY 2012-2013.
     
  17. cir

    cir Senior Member Senior Member

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    India is a tiny market for China。

    Thailand is bigger than India in so far as China's export is concerned。

    So stop jumping over the moon at the “news”。:rofl:
     
  18. Yusuf

    Yusuf GUARDIAN Administrator

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    Cir, thanks but no thanks. We are aware of the problems with India and we are raising our voices through mediums available.

    BTW, a UN report yesterday put India's growth for 12-13 @ 7.5%
     
  19. Yusuf

    Yusuf GUARDIAN Administrator

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    We will. Coz it means Indian made goods are being preferred and Chinese imports will stop.
     
  20. cir

    cir Senior Member Senior Member

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    China's overwhelming grip over supplies of stationary products, fabrics, toys and lighting products started loosening over the past year.

    China is moving up the value chain,and fast。These low value-added industries mentioned above are meant for countries like Vietnam and India。

    But beware though:the goods might originate from, say,Vietnam or Cambodia,but they are produced by Chinese owned concerns。:rofl:
     
  21. Dovah

    Dovah Untermensch Senior Member

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    Botland Boyz :lol:
     
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