The industrial sector today fielded one of the top Indian companies to convey to the Government the need for imposing an anti-dumping duty or countervailing duty on import of Chinese equipment.'Industrial sector', the report says. Wonder if it includes importers of these Chinese equipment.
Speaking in the context of the manufacturing sector, at a World Bank conference on public private partnership in infrastructure, the Larsen and Toubro Chairman and Managing Director, Mr A.M. Naik, said that with the Chinese currency at artificial levels and Chinese firms getting equity from their Government at zero cost, the firms enjoy a cost advantage vis-à-vis their Indian counterparts.
"In most of the contracts that the Chinese firms bag in India, domestic companies lag by a margin of 5-10 per cent," he said adding that Indian firms have to build in a 14-15 per cent cost of equity.
"Till China floats its currency and abides by the WTO norms, the benefit of low or zero duties (on goods imported to India) should not accrue to Chinese firms," Mr Naik said.
Here's another way of looking at this: "A top industrialist complained that Chinese tax payers subsidize Indian buyers, lowering the price they have to pay for equipment. These products made by domestic companies cost 5-10% more. Now, Government should force these buyers to shell out more."
1 comment:
Ramnath, you make an excellent point here. The loudest complaints come from companies who face competition from the Chinese on their end product, but who would crib and fume if they are prevented from sourcing their raw material from the Chinese.
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