Apart from Ficci, Confederation of Indian Industry (CII) too had earlier announced the formation of `Track China' committee to look into the issue of cheap Chinese imports with the government. Ficci's taskforce intends to use the vast network of chambers of industry associations all over the country to understand the root cause of this growing problem and will consult its 2000 associate members from various parts of the country to ascertain the data on the price differential in various product groups. Various industry associations such as the Automotive Tyre Manufacturer's Association, India Cycle Manufacturers Association, Consumer Electronics Manufacturers Association, Association of Indian Dry Cell Manufacturers and Electronic Merchant's Association have already voiced serious concerns about this trend.

Ficci says that taskforce will enable analyse the ensuing effect on the business prospects of Indian industry and suggest strategies to counter the peril from low cost imports from China. Ficci is of the opinion that various sectors of Indian industry are facing a colossal threat because of cheap imports from China. It is widely known that many manufacturers have stopped production and are importing similar products from China because of the vast cost differential. Exports from China have also affected prospects of Indian exports to different countries. Ficci is hopeful that China's entry into WTO will provide more transparency in ascertaining the input costs and thereby ensuring that Chinese exports do not amount to dumping.

Sectors such as electronic components and goods, chemicals, textiles including synthetic fibres and silk, ready-made garments, steel, rubber products and tyres have been facing an adverse impact on their business because of imports from China.

In case of tyres, price of Chinese made tyres in India is 30 per cent lower than the Indian tyres. Though the marketshare is low at present, yet it is apprehended that this share may increase in the times to come, says Ficci.

Exports from China has also had an adverse impact on the export prospects of Indian tyres. The Automotive Tyre Association has mentioned the cost advantage of Chinese tyres is due to the huge subsidy in their production process. There is also an apprehension that many of these Chinese products enter India through SAARC countries with whom India has a preferential tariff arrangement.