Chinese toys make Holi damp squib for local ones

Markets in northern India have been flooded with Chinese pichkaris (water guns), balloons and colours this Holi, leaving jobless about one million people in small and medium enterprises in India, according to an Assocham survey.

“A sharp decline in these units is creating job losses in the sector affecting over eight to 10 lakh people. Even the owners of SMEs are indebted to bankers and moneylenders due to continued loss of business and capital,” revealed the Associated Chambers of Commerce and Industry of India (Assocham) survey on Monday.

The Assocham surveyed about 1,000 colour manufacturers and shopkeepers in Allahabad, Agra, Hathras, Mathura, Vrindavan, Delhi and the National Capital Region, Kanpur, Lucknow and Patna between January and February. The findings revealed that an array of coloured powder and squirt guns imported from China has triggered attrition in SMEs operating in these Indian towns and cities.

Releasing the survey analysis, Assocham secretary general D S Rawat said the government should impose import restrictions on water toys, and other items that can be easily manufactured in India.

“Nearly 1,000 SME units have shut down in the last two to three years owing to the rise in imports from China. Manufacturers were forced to stop operations mainly in Allahabad, Delhi, Kanpur, Lucknow, Patna and Brij Mandal — Agra, Hathras, Mathura and Vrindavan,” Rawat said.

According to several shopkeepers and manufacturers, the invasion by Chinese products has been threatening their daily earnings.

“For the past five years, the business of local sprinklers is decreasing due to stiff competition from Chinese sprinklers. We are facing huge losses as from small plastic sprinklers to colourful perfumed sprays, imported from China, are available in the market,” said a manufacturer and trader of sprinklers in Delhi.

However, the Assocham survey revealed that Indian manufacturers were unable to keep pace with innovative Chinese products. For instance, Chinese revolving water guns, bazookas, spray cans and gun splashes have a huge demand in the market.

“Chinese sprinklers are available in different price bands from Rs 10 to Rs 1,000. Although traditional plastic sprinklers from Indian manufacturers are selling, people prefer to buy Chinese items as they are innovative,” the survey said.