Electrical parts imports from China on the rise

After automobile parts, cheap electronic items it is now local electrical products that is facing the heat from cheap Chinese imports.

According to Madras Electrical Trade Association (META) imports from China is on the rise. The total market for electrical products in Tamil Nadu is around Rs 5000 crore a year and imports from China constitute as much as Rs 250 crore a year. Most of these imports in ‘non-value added’ products like lighting products which constitute nearly Rs 1000 crore or 20 pre cent of the total market.

According to sources of META almost 20,000 people have been affected in the last 3-4 years by the surge in imports from China.

Speaking at a conference held by META to announce the dates for Electrica 2008, an electrical products exhibition held by the association every two years, Hukichand D.Shah, president, META said, “We are asked for complete ban on imports from Chinda in non-value add products segment.”

Shah said that the government must reconsider the value added tax (VAT) be brought down to 4 per cent from 4-12 per cent for the different electrical products. State government must also provide hurdle-free single window clearances, incentives and tax exemptions like Himachal Pradesh and Uttaranchal Governments for production of electrical goods, he said.

Electrica 2008 which will be held in Chennai between August 15 and 17. An estimated 25,000 visitors are expected to participate in the exhibition.