The government has for the first time accepted that dismantling of quantitative restrictions will have an adverse affect on small scale industries and that there will be increased threat of cheap imports from China.
The study group on development of small scale enterprises headed by Planning Commission member S P Gupta, which submitted its report today, has also identified products including tyres, bicycles, dry cell batteries, fibres, ferrous alloys, edible oils, chemicals, toys, textiles and engineering and electronic goods which are imported from China through illegal channels.