Industries cannot abruptly 'Boycott China': Entrepreneurs

As the ‘boycott China’ campaign gathers steam on social media, entrepreneurs and industry representatives in the state say they cannot abruptly stop depending on that country without creating an alternative ecosystem.

For instance, when it comes to electrical and electronics industry, companies are dependent on China for several components. Not only does the industry have to find an alternative source it should also get the same products at a competitive price, entrepreneurs explained.

“We need at least six months to make alternative arrangements and sustain ourselves. For example, I am importing from Taiwan, Germany and Korea for my business. However, these countries are also dependent on China. The products are often shipped from China to these countries, from where it is distributed to India,” said H N Ramakrishnaiah, an entrepreneur in the electrical and electronics industry in Bengaluru.

That apart, India is not a manufacturing hub when it comes to semi-conductors. Unless, alternatives are created, one cannot stop business with other countries, the entrepreneur
emphasised.

Spare parts is but one aspect of it. Several companies are importing machinery from China as they cost more in India, pointed out R Raju, President of Karnataka Small Scale Industries Ltd (KASSIA).

“Even today, imported machinery is waiting to be transported from the ports. A company would not prefer to take loan on a more expensive machinery in India, while they can get the same for a competitive price from China,” he added.

At the larger level, wooing investors moving away from China is another challenge, according to industry representatives.

Even though the government has been announcing its commitment to ease of doing business, companies still have to run from pillar to post for certifications, which is a hurdle for attracting investments, Raju said.

Industry bodies act

Nonetheless, industry bodies KASSIA and Federation of Karnataka Chambers of Commerce and Industry (FKCCI) are making attempts to slowly move away from this dependency. While KASSIA is in the process of forming a team to look at attracting investors going away from China, FKCCI has already constituted a task force on similar lines.

“The task force will not only study how to attract investments to Karnataka, it will also help companies look for alternatives to China, when it comes to sourcing products,” said FKCCI president C R Janardhana.