A Parliamentary Committee submitted its 55th report on “Impact of Chinese Goods on Indian Industry” to the government. The government presented this report in the Rajya Sabha, which recommended completely protecting the Indian industry against illegitimate, protectionist and unfair trade practices of any country.
The parliamentary committee noted in the report that China faced a lot of anti-dumping investigations. This implied that Chinese goods were causing unfair trade disruption.
The Directorate General of Anti-Dumping and Allied Products (DGAD) were of a long duration. The injury caused to the domestic industry was too much, leaving it weak and bleeding forever, when the DGAD investigations concluded.
According to the report, the anti-dumping framework has been undermined by lax implementation, with certain people being able to import Chinese goods by misclassifying the products and circumventing the goods. Under-invoicing of the Chinese goods was rampant.
The report opined that cheap and poor-quality Chinese products can be avoided with the help of a strong quality control framework and supporting infrastructure. Poor quality Chinese goods badly affect Indian industry and consumers.
In the garb of “ease of doing business”, while India was too generous in opening its markets for China, China was smartly protecting its industries from Indian competition. The committee advised the government to exercise caution while negotiating on pacts with countries such as China, so that the country’s industrial health is not compromised.
The committee says that the Department of Industrial Production should quicken the process of issuing the Quality Control Order (QCO) for toys and ensure that toxic and cheap Chinese goods do not enter India.
