Indian MSMEs are struggling as Chinese imports increasingly dominate the domestic market. According to a Global Trade Research Initiative (GTRI) report, over 90% of umbrellas, artificial flowers, and human hair products in India are sourced from China.
In categories like glassware, leather, and toys, China holds more than 50% of the market. Even traditional sectors like ceramics and musical instruments are affected, with Chinese goods taking over half the market share. From January to June 2024, India faced a $41.9 billion trade deficit with China, highlighting the growing reliance on imported industrial goods.