Ambala’s once-thriving scientific instrument manufacturing sector is now grappling with a survival crisis, largely due to its growing dependence on Chinese imports and insufficient government support. Industry players warn that unless urgent interventions are made, the city’s famed scientific apparatus market may soon lose its identity as a manufacturing hub.

Key challenges

- Heavy dependence on Chinese imports: Cheaper raw materials and components make Chinese products more attractive

- Lack of skilled labour: A growing skills gap is affecting local production capacity

- Complex regulations: Higher GST rates, ISI marking requirements and centralised procurement have added hurdles

- Inadequate govt support: Limited awareness of schemes and cumbersome documentation processes hinder small manufacturers

- Shift from manufacturing to trading: Many local units now focus on assembling and selling imported goods rather than producing them

Industry’s demands

- Simplified documentation and regulatory processes

- Special incentive packages for local manufacturers

- Investment in skill development and training programmes

- Government intervention to reduce dependence on imports

With over 2,000 small and large manufacturing units in Ambala Cantonment and Saha, the industry — engaged in producing glassware, electronic goods, educational instruments and scientific apparatus — boasts an estimated annual turnover of over Rs 3,000 crore. However, industry insiders say that an increasing number of local manufacturers have shifted to importing cheaper Chinese components instead of producing them locally, limiting themselves to mere assembly operations.

“Due to availability of components and raw material at cheaper rates from China, a number of industry players have turned into traders,” said Arun P Bansal, a scientific goods manufacturer and exporter. “The local manufacturers are not able to take advantage of government schemes due to lack of awareness and limited funds. The government must step in to save this cottage industry, which provides employment to thousands,” he stressed.

The influx of Chinese products — ranging from glass tubing and microscope parts to fiberglass models — has deeply impacted local production. Even the late Ambala MP, Rattan Lal Kataria, had raised concerns in the Lok Sabha in 2022, warning that “China has captured around 45% of Ambala’s scientific industry. If skilled labour is not provided and imports from China are not stopped, the Ambala industry will perish.”

‘Make in India’ at risk

Gaurav Soni, general secretary of the Ambala Scientific Instruments Manufacturers’ Association (ASIMA), highlighted the systemic challenges that hinder local manufacturing. “The dependence on China has grown because raw materials are significantly cheaper and more readily available. Why would a manufacturer invest in expensive local materials or set up new factories when cheaper imports are easily accessible?”

Soni pointed out that though the government has rolled out supportive schemes, small-scale manufacturers often struggle with complex documentation and a lack of awareness. “Setting up a new unit requires heavy investment and navigating tedious bureaucratic hurdles. While the government champions ‘Make in India,’ Ambala is fast becoming a traders' hub, importing and selling rather than manufacturing,” he added.

Vikram Choudhary, president of ASIMA, echoed similar concerns. “Manufacturing has declined over the years, thanks to policies that unintentionally burden the industry. Higher GST slabs, ISI standardisation for glassware and NCERT’s centralised procurement system have complicated the supply chain for small manufacturers,” he said.

Choudhary noted that during a recent pre-Budget meeting with the Union Finance Minister, industry representatives raised these concerns, but no significant relief has been offered so far. “We also face a shortage of skilled labour. To truly revive this sector, the government should introduce special packages, simplify regulations, and foster a competitive environment that supports local businesses,” he urged.