European and American buyers are asking Indian exporters to match the Chinese prices in wake of the global economic slowdown and resulting aggressive pricing policy adopted by China. Federation of Indian Chambers of Commerce and Industries – FICCI has found in a survey that Indian exporters are struggling to compete their Chinese counterparts on pricing issue.
Due to the ongoing recession in both Europe and US, consumer spending in these countries has declined sharply and as a result demand for imports is also going down. Chinese importers in this wake are relying on an aggressive pricing policy to maintain export momentum.
However, the development is proving to be hard for Indian exporters which are increasingly seeing the demand from importers to match Chinese prices. FICCI believes that since China has an edge on India in terms of cost of production, in current times of severe slowdown, Indian exports may go down further in coming months as producers here will not be able to meet Chinese prices.