Indian MSMEs facing stiff competition from China: Muniyappa

Micro, small and medium enterprises (MSMEs) in the country are facing greater competition from China as compared to the rest of the World, Minister of State (Independent Charge) for Micro, Small and Medium Enterprises, K. H. Muniyappa said Thursday.

"Strong competition from China faced by Indian MSMEs is evident in high growth of India's imports from China," the minister said in a written reply to a question in the Lok Sabha on Thursday. 

"As per information compiled from Director General of Commercial Intelligence & Statistics in respect of 8 major product groups largely manufactured by the Small Scale Industries (SSIs) in India, imports from China grew at a higher rate than their respective imports from All Countries combined during 2008-09 to 2011-12." 

As these 8 product groups accounted for 54 percent of India's total imports from China in 2011-12, a significant proportion of Indian SSIs are seen to be facing greater competition from China as compared to the rest of the World, he added.

These product groups pertain to Electrical and Electronics, Mechanical and Metallurgical products on the one hand and Chemical & Glass & Ceramics based products on the other.

The minister also said, through the Ministry of MSME, Government is implementing various plan schemes/ programme to overcome the challenges on the growth of MSMEs. 

To this end, the Ministry of MSME was allocated a Gross Budgetary Support (GBS) of Rs.10,330 crore during the 11th Plan (2007-12). The GBS for the 12th Plan (2012-17) of the Ministry has been approved at Rs.24,124 crore by the Planning Commission. These schemes/ programmes help MSMEs grow, increase their competitiveness and consequently exports, he added.