Lok Sabha Question No. 2600 (UNSTARRED), answered on 2016-03-14
Subject: Imports from China
Ministry: COMMERCE AND INDUSTRY
Asked by: KAPIL MORESHWAR PATIL

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 2600 TO BE ANSWERED ON 14 TH  MARCH, 2016

## IMPORTS FROM CHINA

## 2600(H). SHRI KAPIL MORESHWAR PATIL:

Will the Minister of COMMERCE & INDUSTRY ( वािणÏय एवं उɮयोग मंत्री ) be pleased to state:

- (a) whether the import of cheap goods manufactured by China is adversely affecting Indian Industry especially small and medium enterprises in the perspective of global slowdown;
- (b) if so, the details thereof; and
- (c) The steps taken/being taken by the Government to impose ban on import or imposing anti -dumping duty on Chinese items like auto spare parts, toys, chemicals and metals as safeguards to domestic Industries?

## ANSWER

## वािणÏ य एवं उɮयोग राÏ य मंत्री ) सीतारमण िनमर्ला Įीमती ( ( èवतंत्र प्रभार ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE) (SMT. NIRMALA SITHARAMAN)

(a) to  (b) Indian  Micro,  Small  and  Medium  Enterprises  (MSMEs)  are  facing significant  competition  from  Chinese  imports  as  is  evident  in  high  growth  of  India's imports  from  China.  As  per  the  available  data  (as  annexed)  in  respect  of  12  major product groups largely manufactured by MSMEs, imports from China grew at a higher rate than respective imports from all other countries combined during 2011-12 to 201415.

(c) Trade defence measures like anti-dumping duty, counter-vailing duty and safeguard duty are available  to  Indian  industry  to  seek  relief,  as  prescribed  and  applicable.  The Government  can  impose  Safeguard  Duty  on  any  article  imported  into  India  in  such increased  quantities  and  under  such  conditions  so  as  to  cause  or  threaten  to  cause serious injury to the Indian domestic industry.

Further, the Directorate General of Anti-Dumping & Allied Duties (DGAD) conducts anti -dumping investigations on the basis of duly substantiated petitions filed by the domestic industry alleging dumping of goods into the country and causing injury to the domestic industry. It has so far initiated 322 anti -dumping cases out of which 177 cases involve China PR.

Also in order to boost exports and to maintain balance of trade with China, India has impressed upon China to recognise the need for reduction in trade imbalance for a long term, sustainable and harmonious development of economic co - operation between the two countries.  During  the  10 th Meeting  of  the  Indian  -  China  Joint  Economic  Group (JEG)  at  Ministerial  level,  both  the  countries  have  reaffirmed  their  determination  to expand  and  diversify  bilateral  trade  and  economic  cooperation.  The  two  sides  have agreed to take positive steps towards balancing bilateral trade. Both countries signed the 'Five  Year  Development  Program  for  Economic  and  Trade  Cooperation'  wherein reduction of trade imbalance over the next five years has been identified as one of the principal objectives of trade and economic cooperation between India and China.

## Annexure to LokSabhaUnstarred Question No.2600 admitted for answer on 14 th March, 2016 regarding 'Import from China'.

## Values in Rs. Lakh

| S.No.   | HS    | Product Groups                                           | 2014 - 15      | 2014 - 15       | 2011-12 to 2014-15             | 2011-12 to 2014-15             |
|---------|-------|----------------------------------------------------------|----------------|-----------------|--------------------------------|--------------------------------|
|         | Code  |                                                          | China          | World           | China                          | World                          |
|         |       |                                                          | Imports        | Imports         | Average Annual Growth Rate (%) | Average Annual Growth Rate (%) |
| 1       | 2     | 3                                                        | 4              | 5               | 6                              | 7                              |
| 1       | 85    | Electrical and Electronic Equipment                      | 1,02,38,374.16 | 2,02,91,039.20  | 16.89                          | 9.66                           |
| 2       | 84    | Machinery and Mechanical Appliances                      | 62,08,168.45   | 1,94,16,505.05  | 9.25                           | 2.62                           |
| 3       | 29    | Organic Chemicals                                        | 38,63,622.86   | 1,08,35,064.01  | 27.99                          | 18.90                          |
| 4       | 72    | Iron &Steel                                              | 16,63,061.46   | 75,51,648.34    | 28.81                          | 4.95                           |
| 5       | 39    | Plastics and Articles thereof                            | 10,43,555.04   | 71,39,553.68    | 35.73                          | 25.32                          |
| 6       | 73    | Articles of Iron or Steel                                | 8,50,490.01    | 24,35,436.75    | 5.04                           | 3.86                           |
| 7       | 90    | Optical, Photo, Technical, Medical, etc Apparatus        | 7,46,755.31    | 43,10,918.52    | 21.52                          | 11.70                          |
| 8       | 71    | Pearls, Precious Stones, Metals, Coins, etc.             | 7,46,364.16    | 3,81,51,448.66  | 23.33                          | -4.07                          |
| 9       | 87    | Vehicles and Parts / Accessories thereof                 | 7,12,170.28    | 29,72,250.00    | 16.47                          | 6.72                           |
| 10      | 38    | Miscellaneous Chemical Products                          | 4,83,279.10    | 25,49,336.76    | 28.36                          | 14.26                          |
| 11      | 27    | Mineral Fuels, Oils, Distillation Products etc.          | 4,74,700.41    | 9,53,42,584.17  | 9.55                           | 5.05                           |
| 12      | 94    | Furniture, Lighting, Signs, Prefabricated Buildings, etc | 4,53,017.30    | 7,87,210.68     | 22.70                          | 16.27                          |
| Total   | Total | Total                                                    | 2,74,83,558.54 | 21,17,82,995.82 |                                |                                |

*Source: Director General of Commercial Intelligence data hosted by Department of Commerce on its website.