Indian MSMEs have potential to bring down Chinese import dependency, says PHDCCI

New Delhi, Aug 23 (KNN) The MSMEs of India in different sub-sectors will help reduce country’s 40 per cent imports worth around USD 35 billion from China, said the PHD Chamber of Commerce and Industry (PHDCCI).

It can be done in a phased manner without any substantial extra investments, as per the industry body.

President of the chamber Pradeep Multani said that the recent dynamic schemes announced by the government such as PLI and PM Gati Shakti have enhanced the sentiments of the Indian producers to produce more at the competitive cost which will give a considerable competition to China.

In FY22, India’s trade deficit with China had increased to USD 72.9 billion which is a 44 per cent increase in imports to USD 94.16 billion from the previous year.

“Imports from China have changed from low-value, low-cost products like toys and crackers to high-value items like electronics,” said Multani.

He said that despite of that India has significant scope for producing more import substitution in the sectors including chemicals, automotive components, bicycle parts, agro-based items, handicrafts, drug formulations, cosmetics, consumer electronics, and leather-based goods etc.

As an alternative to importing from foreign countries to meet domestic demand, Multani said that MSMEs should be assisted in improving their cost competitiveness and catering to export markets.  (KNN Bureau)