Red tape cut, it's boom time for buyers

Red tape cut, it's boom time for buyers
EXPRESS NEWS SERVICE

AHMEDABAD, MARCH 21: Consumers have never had it so good. The removal of quantitative restrictions on some 714 products from April this year may prove to be the bane of the local industries' existence, but for the buyers, it's a boon. Chinese manufacturers -- with their low-priced products -- may have sent the shivers down many an Indian industry's spine, but then who's complaining? Certainly not the consumer.

Though the Centre has already imposed import duty on agro products to save the domestic industries, the absence of such barriers on other products could give tough competition to the domestic industry.

However, it bodes well for consumers. Says Babu Ezhumavil of Exim Expertize, ``The removal of quantitative restriction means the consumer will get a wider choice in consumer products. He can expect better-quality products too, as domestic manufacturers will also try to improve their quality.'' Besides, free imports of consumer products will lead to a price war, which will benefit the consumers.

To the domestic industry, however, this means tough times ahead. For industries in Gujarat, however, the main areas that may be affected by free imports are chemicals, plastic products, electrical goods and paper products.

In chemicals, the domestic industry is already hit by cheap Chinese chemicals and dyes. Important among them are soda ash, drug intermediates, dyes and dyes intermediates. The problem is that even though in some products the quality is not up to the mark, Chinese products sell because of the low price. Says Babu Ezhumavil, ``These products are coming at such low prices that nobody is bothered about quality.''

Another industry in the State affected by the Chinese imports is the textile one, mainly manufacturers of blended fabrics like polyester cotton and polyester viscose. Though textile units in Ahmedabad will not be much affected by the Chinese products, those in Surat will be. Says D R Shah, former president of All-India Textile Association, ``Though the Chinese textile products are not coming in large quantities at this stage, there is a risk in the future. The reason is that the quality of Chinese products is better.''

Other industries that will be adversely affected by the removal of quantitative restrictions are ceramic and crockery industries. According to Gujarat State Small Industries Federation President Maganbhai Patel, the clock-manufacturing units located around Morbi are already affected by the back-door entry of cheap Chinese clocks, but will be severely affected once the restrictions go. ``There are some 150 clock manufacturers in Morbi. They will close down.'' The crockery industry located in the same area will also take the blow, he says. According to Patel, there are some 90 crockery manufacturing units in the State.

Plastic product-makers in the State will also be adversely affected by free imports. According to Confederation of Indian Industry (CII) senior director Sunil Parekh, plastic manufacturers will have tough competition as Chinese plastic goods are some 35-40 per cent cheaper and are of good quality.

Though quantity restrictions are going, industry sources say the Government is likely to put non-tariff barriers to check the quality of imports. Says Parekh, ``For example, the government can make it compulsory that such products conform to the Bureau of Indian Standards (BIS).''

On the list

Photographic films

Imitation jewellery

Cotton handbags

Leather sofa covers

Articles of artificial fur

Paper

Upholstery fabric

Synthetic fibre

Footwear

Garden umbrellas

Marble, granite

Ceramic and cement tiles

Corrugated sheets

Clay tableware

Toilet articles

Suitcases

Stationery

Cookers and stoves

Sanitary fixtures

Ceiling fans

Vacuum cleaners

Flashlights

Microwaves

CD players

Video cassettes

Fire, burglar alarms

Projection TVs

Switch gears

Mercury lamps

Battery-operated vehicles

Bicycles

Sunglasses

Watches

Lanterns

Toys