Amid tech upgrades, Ambala’s scientific industry seeks govt help to regain competitive edge

Amid rapid technology upgrade, stiff competition and infrastructural bottlenecks, the scientific apparatus manufacturing industry of Ambala is seeking government’s help to regain its competitive edge.

There are over 2,000 units in Ambala Cantonment engaged in the manufacturing of glassware, electronic products, educational instruments and other scientific apparatus, and has an annual turnover of over Rs 3,000 crore.

The manufacturers also believe that the Ambala scientific instruments industry has lost its competitive edge due to dependence on China. Glass tubing, glassware products, microscope, fiberglass models and other products are coming from China.

Back in 2022, the late Ambala MP Rattan Lal Kataria had urged the Central Government in Lok Sabha to save the industry from China. Kataria had stated “China has captured around 45 per cent business of Ambala’s scientific industry. If skilled labour is not provided and imports from China is not stopped, the Ambala industry will perish.”

“Ambala’s industry is largely engaged in manufacturing educational equipment, scientific instruments and laboratory glassware and the recent GST reduction hasn’t provided much relief to the local industry. A higher power tariffs has been another concern for the small-scale industrialists. Ambala is a hub for scientific glassware and glass-blowing manufacturing, housing hundreds of small-scale units that supply equipment across the country and aboard, and the sector operates on low profit margins. The power charges constitutes a major share in the production expenses. The higher input costs drive up the cost of production making it difficult for the local industry to compete in the international markets, in the presence of players like China, said Alok Sood, a scientific apparatus manufacturer and secretary of Ambala Chapter of Haryana Chamber of Commerce.

“The glassware industry is depending on China for tubing but it will be better if the government establishes a tubing unit or launches a special scheme to encourage the local industrialists to setup a tubing unit. Similarly, the electronic components and high-end microscopes are being imported from China, and some other countries. China is feeding the entire world and there is a need to produce high-quality products at competitive prices in India to end the country’s dependency on other countries and to make the country self-reliant. There is a need to develop common facility centre to support the small industries,” he added.

The Ambala Scientific Instruments Manufacturers’ Association (ASIMA), has been raising its concerns with the state and the Central Government and seeking the government’s support to tide over the challenges posed by China and changing technologies.

ASIMA’s office-bearers said inadequate transportation networks, logistics facilities, high inland freight (factory to port) and power supply hinder the competitiveness of MSMEs. Besides this, the limited access to institutional finance has been another prime concern for the industry players as they face difficulty in accessing the institutional finance leading to liquidity issues and impacting their ability to invest in technology and innovation.

Uma Kant, general secretary of ASIMA said, “Besides the finance and infrastructural bottlenecks, shortage of skilled workforce in areas like glass-blowing, electronics, IT, and automation, is also affecting the industry’s growth. There is a need to relax the complexed regulations and launch some special skill development programmes, to cater the industrial needs, and also industry-academia collaborations to address

the skill gap.”

“We have suggested to the government to invest in transportation networks, logistics facilities and power supply to improve competitiveness for addressing the challenges. Simplify regulations, reduce compliance requirements, and implement single-window clearance systems. Besides these, the government should organise international-level trade fairs, exhibitions and buyer-seller meets to connect the MSMEs with global markets, and also establish technology incubation centres, provide access to industry 4.0 technologies and support digital transformation,” he added.

ASIMA president Jitender Sehgal said, “Ambala’s scientific industry has been facing challenges from various fronts. A higher GST slab, lack of automation and lagging behind in technology upgrade have been some major issues before the industry. The world is seeing rapid technological transformation, and the customers’ demand and requirements are also changing, and it requires a heavy investment to obtain and adopt the new technologies due to high cost of machines.”

“From manufacturing the mechanical and physics lab equipment, the manufacturers have shifted to manufacturing electronic equipment due to change in the market’s requirement. Since the Ambala’s industry is engaged in manufacturing products used in educational sector and laboratories, the association has requested the government that the GST must be reduced from existing 18 per cent to 5 per cent, if it can’t be removed completely. There is also a need to develop special clusters and a constant government support with favourable policies and subsidies to motivate the businessmen and promote the local manufacturing,” he added.

The ASIMA president said Ambala’s industry was supplying products not only across the country, but in a number of African and European countries too. At present, the Ambala’s glassware industry was doing well in the local as well as international markets but the industry was dependent on glass tubing being imported from China. It would be better if a government unit was established in the region producing glass tubing to end dependency on China.

“Definitely, manufacturing has gone down over the years and it is disheartening to see that a number of manufacturers over the years have started procuring components from China, and selling products after assembling here. The government must come forward to support the local industry as it provides employment to thousands of people. It should come up with some special package and policies to boost manufacturing and create a competitive environment to help the local industry regain its competitive edge,” Sehgal said.

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