Chinese products cheaper due to opaque subsidy regime: Govt | india-news | Hindustan Times
Today in New Delhi, India
Jan 19, 2018-Friday
-°C
New Delhi
  • Humidity
    -
  • Wind
    -

Chinese products cheaper due to opaque subsidy regime: Govt

Minister told Parliament that the products manufactured in China are reportedly of lower price mainly because of their opaque subsidy regime and distorted factor prices.

india Updated: Jul 31, 2017 15:41 IST
Prices of Indian products are higher in comparison to the goods manufactured in China.
Prices of Indian products are higher in comparison to the goods manufactured in China.(Arijit Sen/ HT Photo)

Chinese products are cheaper than Indian goods because of the opaque subsidy regime prevailing in China, the government said on Monday in Parliament.

“The products manufactured in China are reportedly of lower price mainly because of their opaque subsidy regime and distorted factor prices,” minister of state for MSME, Haribhai Parthibhai Chaudhary said in a written reply in the Lok Sabha.

He was replying to a question which sought to know the reasons behind the higher prices of domestic products in comparison to the products manufactured in China.

The minister said that the survival and growth of micro, small and medium enterprises (MSMEs) depends on a number of factors like availability of timely credit, upgradation of technology, infrastructure, access to market, quality of products, etc.

“Competition from internal and external sources including competition from multinational companies is also one of the factors,” Chaudhary said in a reply to another question on whether Indian MSMEs are reportedly lagging behind due to availability of the products of multinational companies.