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Under-invoiced Chinese fabrics hurting the MSMEs, govt must put a check immediately: GCCI

Updated: Jul 27, 2017 10:42:27am
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Under-invoiced Chinese fabrics hurting the MSMEs, govt must put a check immediately: GCCI

New Delhi, July 27 (KNN) With the Chinese imports beginning to dominate the market and the importers increasingly involving in malpractices such as under invoicing, the domestic fabric making MSMEs are getting adversely affected, industry body Gujarat Chamber of Commerce and Industry (GCCI) said.

Talking to KNN, Shailesh I. Patwari, President of the Gujarat Chamber of Commerce and Industry (GCCI) explained the situation.

Patwari said that the import from China has increased substantially in last few years. The importers are getting the Chinese made fabric and making the market uncompetitive for the Indian MSMEs.

He further said that the Chinese textile industry gets many subsidies and incentives from their government because of which they are able to produce at a very cheap cost. In addition to this, the Chinese imports that arrive in India are highly under-invoiced.

“China made fabric is being priced at as low as Rs 8 per square metre, this rate is totally unbelievable, a simple handkerchief costs more than that. With such a situation taking over the market, it is becoming impossible for the Indian fabric MSMEs to survive” he said.

He further said that the sector provides for maximum employment in the country, If it goes out of business, it will have a very negative imprint on the country’s economy.

Patwari informed that his association along with other industry bodies from Gujarat have appealed to the Textile Ministry to import heavy duty on these Chinese imports immediately.

“I have personally met Textile Minister Smriti Irani, she assured me that the office will take stock of the situation, but nothing has happened in the line so far”.

Not just higher import duties, but the importers that are involved in the cases of under-invoicing must be penalised, Patwari added. (KNN/ DA)

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