CONSUMER RIGHTS
Made in China — good for India

There is a wide range of low-priced Chinese goods in our markets but the quality is suspect, finds Pushpa Girimaji

Things have changed over the years. Sometime back the Indian industry was crying foul over what they described as China's invasion into the Indian market. While the terror-stricken industry called for protectionist measures, consumers clamoured for more affordable imports from China. The Made-in-China decorative lights certainly made Divali brighter and colourful. But that was only a small part of it. While Indian children found joy in China-made toys, the Indian consumers enjoyed watching the latest blockbusters from around the world, copied on CDs and transmitted through the highly affordable VCD players. They were so inexpensive that even vegetable vendors at the Jayanagar market in South Bangalore sat glued to television screens in their small shops in the crowded market.

Chinese television sets, radios, wind chimes, bulbs, batteries, candles, silk, you name it and the Indian consumer enjoyed buying them. So much so that a few years ago, this was one of the topics that dominated the pre-budget meeting that the consumer activists had with the then Union Finance Minister Yashwant Sinha.

Consumer representatives told him during the meeting that he should keep the interests of consumers while responding to domestic industry's demand that imports from China be subjected to anti-dumping duties. It was one thing to ensure a level playing field for the domestic industry and another to come up with protectionist measures that would stifle competition and improvement in quality, they said.

Consumer activists emphasised the need for government to ensure that the imports are in accordance with the relevant Indian laws, particularly on quality, safety and warranty. Obviously, this was not done and goods of questionable quality inundated the Indian markets. May be the initial hunger of Indian consumers for highly affordable Chinese goods gave an impression to the China that unlike the West, Indians were not fussy about quality.

The result is that many VCDs have now stopped working. So also the tiny, beautifully designed radios and cassette players. And worse, there is no provision for after-sales servicing of these goods. And slowly the impression of Chinese goods in the Indian minds is undergoing a transformation.

There is a lesson in this for Indian manufacturers: it is only those that deliver quality goods that survive. So the earlier the manufacturers realise this, the better it is for them. For several years, Indian manufacturers argued that they gave poor quality goods because the consumers were bothered more about the price than quality. The Chinese experience has shown the hollowness of this argument. Indian consumers want goods at low prices. But they will not allow quality to be sacrificed. They want quality goods at reasonable prices and they will reject those that do not fulfil these requirements.

Talking of price, one must acknowledge the role played by Chinese goods in bringing down the prices of electronic goods in the Indian market. Whatever may be their reputation today, the competition from these goods certainly forced Indian and other foreign manufacturers to think of cutting down the price barrier.

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