Chinamania

You must have seen my entry- China Invades India’s Manufacturing Sectors’. That got published in Patnadaily.com too. While my blog didn’t attract comments (now I have inserted the ones from Patnadaily.com), there were some critical ones on the later site.

‘The article does amuse me a bit because so many years have passed and still some people write such article which should be written 10 or 15 years ago…– ‘They can make final product even cheaper than the cost that you pay for raw material because buying large quantity is always cheaper than buy small amount. It is not dumping but Chinese simply work hard and smart.’ This was in a long comment from one Dake Yu. I don’t know if ACMA members would agree to this logic.

Another comment from Mr. SS Sharma having business background was equally revealing.

” I am all for Chinese imports. I can relate objection to Chinese imports only with racism and not with protecting interest of Indian manufacturers as our own Indian Customs and excise have assured that genuine manufacturers are adequately harassed in India. If India seriously wants to compete with China then rather than offering SEZs to neo colonialists it should ease the rules of Customs and excise in general so that whoever wishes can start and run manufacturing business smoothly.’ It goes father, “Recently my office in UK received a bulk order for manufacturing some electronic devices from a renowned company. Here is part of two quotations one received by my Indian office from an Indian supplier and second received by my Hong Kong office from a Chinese supplier for the sub assemblies of the same order. It tells every thing at once.

Indian Supplier, Terms & Conditions:-

Excise Duty :- 16%
Ecess :-3 % on Excise
VAT :- 4%
Octroi :- 3 %
Payment :- 50 % advance 50 % against delivery
SPECIAL NOTE :-
PLEASE DECLARE THE DESIGNING COST IN YOUR PURCHASE ORDER
BECAUSE IT ATTRACTS 16% EXCISE DUTY ON DESIGNING COST
AND YOU CAN AVAIL THE CENVAT ON THE SAME.

Chinese Supplier:
Call me if you have any problem

I have removed the actual quote amount and other details for commercial reasons but Indian Supplier had quoted double the price of Chinese supplier besides quotation of Indian supplier had lot of extra ‘%’ sign. Obviously after saying ‘Resurgent India, India shining etc’, sitting in my UK office, I forwarded the order to my Hong Kong office to process.” Will some one from the administration replies to these frustrating conditions and PM and FM will find a way out? How can the country come back in manufacturing without that?

However, my main points in the article were:

Indian traders must not adopt unfair means of changing the description of the items to attract less import duty in their invoices and must not manipulate the values of the invoices.

Indian government must have a rational import duty for raw materials and finished goods.

Chinese must not sell rather Indian traders must not buy the products rejected by Americans and EU countries and sell it to Indian customers.

Chinese must not copy the traditional handicrafts and handloom items such as Kanchivaram and Banarasi silk sarees that is sold by unscrupulous Indian traders as original.

Chinese must not put ‘Made In India’ mark on their products.

Chinese government must not subsidise the export to make it competitive. How can the cost of a product be less than the cost of the raw materials used in it?


And none who put their comments talked about it.

It is known to every one that it was American retail biggies such as Wal-Mart that developed the low cost manufacturing capabilities of China by providing all inputs, as the American manufacturers couldn’t have reduced the labour cost in US because of headstrong unions. EU countries also followed the American solution to go to China. India’s manufacturing sector was not ready to meet the American demand at that time. However, the things have changed and changing fast in favour of India in manufacturing sector too. At least in some sector such as auto components and textiles, Indian manufacturing may succeed, as Indian manufacturers intend to fight the competition from China.
—————
Piracy Move on China Seen as Near

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