Addressing the 30th annual general meeting of Eastern India Ball Bearing Merchants Association (EIBBMA), Irani said the influx of very cheap bearings from China and East European countries into the Indian market has had a tremendous negative impact on the domestic industry. "Their products are being sold at a price even lower than the cost of steel," he said.

The bearings division of Tisco, which was doing well till 1996, has been showing signs of stagnation during the last two years due to dumping.

Eastern India, which was once the industrial hub of the country, is languishing and only 6 per cent of the total investments in the country is coming to this region, Irani said. "If this problem is not addressed, the country will suffer as it will lead to economic and social destabilisation," he said.

Nicco Corp Ltdchairman and managing director Rajive Kaul said the major developments in eastern India, particularly in West Bengal, would take place in the service sector and an 8 per cent growth rate is expected.

EIBBMA alleged that the effective rate of import duty has only added to the woes of the ball bearing sector which has been hit hard by the recession in the industrial and automobile sectors. It called for immediate redressal of the problem by the union government.