Coronavirus: China’s loss is India’s gain

Vijay C Roy

Tribune News Service

Chandigarh, February 14

As China grapples with outbreak of coronavirus, global hand tools buyers, especially from the US and European nations, are turning to India, particularly in Punjab, to meet their requirements. The manufacturers said the industry is witnessing a double-digit growth and expect the momentum will continue with major growth likely to come up in March or April.

In 2018-19, the hand tools exports from the country was $366.91 million. Punjab contributes 80-85% to the total exports and approximately 400 units are engaged in the manufacturing of hand tools. A majority of these units are in the MSME category and are located in Jalandhar and Ludhiana. In November and December last year, the total exports from the country was $8.68 million and $ 9.88 million, respectively.

“The hand tools are already witnessing a surge in exports with buyers’ preference shifting from China to India. If the situation prolongs (coronavirus pandemic), a major transition may happen in March and April and the industry is anticipating bulk orders,” said SC Ralhan, former president, Federation of Indian Export Organisations (FIEO).

Ajay Sahai, Director General, FIEO, said exporters of chemicals, engineering goods and marine products would benefit the most.

According to the exporters, China enjoys a major share in hand tools market. Initially, it was high tariffs imposed by the US which acted as a deterrent in the global market and now because of coronvirus, major manufacturing activity in China has come to a standstill. It is unlikely that the Chinese manufacturers would be able to meet the export obligations.

In such a scenario, the buyers will shift their preference to India, said exporters. According to them, there is an increased demand of hand tools in the US and European market because of surge in investment in manufacturing activity and hand tools are widely used for maintenance purposes. Secondly, automotive repair and maintenance sector is currently a lucrative industrial vertical for application of hand tools.

Trade insiders said many manufacturers have received enquiries, mostly from the US and the European Union, as foreign buyers are contemplating to replace China as a supplier.

Besides hand tools, Indian manufacturers of ceramics, fashion products, lifestyle goods and textiles have also received queries.

However, Indian manufacturers are keeping their fingers crossed regarding participation in International Hardware Fair, which will be held in Cologne, Germany, from March 1-4. “A significant portion of hand tools’ requirement is met from China. With clouds looming over Chinese participation due to coronovirus outbreak, reports are doing rounds that there would be less visitors this year. This has put the Indian manufacturers in a catch-22 situation as far as their participation is concerned,” said Sandeep Verma, Director, Ashoka Hand Tools.

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