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Emergence of Chinese Products in India - Impact on Indian Industries and Reforms

Author

Listed:
  • Dr. Naveen Singh

    () (Faculty of Commerce, St. Thomas English Medium School, Meerut)

  • Dr. Pawan Kumar

    (Reader, Department of Commerce, M. M. H. (PG) College, Ghaziabad)

Abstract

Come any occasion and the Indian consumer is ready to make a beeline to purchase another of those Chinese goods. For one, these Chinese goods are substantially cheaper than Indian goods and come in wide varieties. In very simple terms in Economics, we know that anything like large scale dumping and imports can spell a disaster for the economy. As the memory of an Indian consumer goes, this influx of cheap Chinese goods started in the late 90s and gained momentum thereon. Every article, be it an expensive Barbie doll or a painting you want to adorn your house with has a Chinese alternate to it. Why the Chinese goods are priced so cheap? The cost of production being less in China is an obvious answer but when we dwell deeper into the world of Chinese manufacturing, the reasons abound. Chinese goods are known for their moderate quality, prompt delivery and affordable prices in comparison to Indian goods.The Chinese entrepreneurs have infiltrated the market in a very systematic manner with their well-planned marketing strategies and continuous innovations. They study the demand patterns and the market trends and work out the lowest price that they can offer to attract a huge section of the consumers while still maintaining a profitable margin. As the Indian market is price-oriented, the domestic players are slowly losing their share to the strategic Chinese entrepreneurs. The only way the above problem can be solved up to an extent is by introducing SME favourable policies. The Indian Government should understand the basic fact that SMEs are the backbone of Indian economy and their growth will in turn add to the development of India. Indian SMEs should also continuously study the market needs and come up with innovative and cost effective products to tackle the burning issue. Because of cheaper prices products made in China are becoming more popular among the Indian masses. This has had a very negative effect on our own manufacturing units and as a result many of them have had to shut shop.

Suggested Citation

  • Dr. Naveen Singh & Dr. Pawan Kumar, 2012. "Emergence of Chinese Products in India - Impact on Indian Industries and Reforms," Journal of Commerce and Trade, Society for Advanced Management Studies, vol. 7(2), pages 56-64, October.
  • Handle: RePEc:jct:journl:v:7:y:2012:i:2:p:56-64
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    File URL: http://www.jctindia.org/oct-2012/oct-12-v-7-i-2-jct-8.pdf
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    References listed on IDEAS

    as
    1. Jason Z. Yin, 2009. "Can Russia Learn from China in Its Quest for WTO Entry?," Chinese Economy, Taylor & Francis Journals, vol. 42(3), pages 60-77, May.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Impact; Chinese Products; Reform; China's Economic Relations;

    JEL classification:

    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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