Date:06/05/2005 URL: http://www.thehindubusinessline.com/2005/05/06/stories/2005050601801900.htm

Back `Chinese consumer products set to invade Indian markets'

Our Bureau

Kolkata , May 5

CHINA may pose a threat to consumer product industries in West Bengal as that country is all set to enter the Indian consumer products market with its low-cost items ranging from cosmetics, plastic, glass, ceramic to stationery items.

This is the conclusion of a 10-member business delegation of the Bengal National Chamber of Commerce & Industry (BNCCI), which visited the Canton Fair during its stay in China from April 24 to 30.The BNCCI President, Mr S.N. Nundy, had discussions with the Vice-President of the South China Institute of Environmental Sciences (SEPA) on co-operation in the field of environmental enterprises. The institute has offered financial and technical support to help tackle the pollution problem of small enterprises in West Bengal.

In fact, an environmental science institute will be set up in the State in collaboration with SEPA.

Explaining the delegation's experience, Mr Nundy told presspersons here on Thursday that the chamber wanted to send a youth team to China to learn about business culture. He said that Chenzhou city in Hunan Province had potential for development of tourism, the same being true of West Bengal. The chamber had plans to promote and exchange tourism between West Bengal and Hunan Province.

Mr A.K. Chandra, a former President of the Chamber and a member of the delegation, said that although China was far ahead in many areas as far as business practices were concerned, "our strength lies in the legacy of British Rule". The country with its vast army of English language-speaking people had a distinct advantage over China and would be able to withstand the Chinese pressure for at least 10 years in the international market. China with overproduction in all manufacturing areas was dumping products at discounted prices in the international market instead of developing its domestic market.

Mr Chandra felt that such tactics would be counter- productive for China in the long run, particularly under the WTO regime.

Another former President of the Chamber and a member of the delegation, Mr S.K. Ghosh said that the development of China's infrastructure sector was quite amazing. It was now keen on investing in India in the infrastructure sector, but in the near future it had plans to "invade" the Indian market with consumer products, including ceramic items.