Import of Chinese equipment leads to lower use of capacity

NEW DELHI: Cheaper Chinese imports in the heavy industries segment, including electrical equipment, have led to under-utilisation of the domestic capacity in the capital goods sector, Parliament was today informed.

"Import of Chinese products in heavy industries segments has resulted in under-utilisation of domestic capacity in capital goods sector," Heavy Industries Minister Praful Patel said in a written reply in the Rajya Sabha.

The quantum of imports from China in this segment was Rs 9,208 crore between the April-September period of the current fiscal. During 2012-13, it stood at Rs 18,385 crore.

Replying to another query, Minister of State for Micro, Small and Medium Enterprises K H Muniappa said in the Rajya Sabha that imports of electrical equipment, including imports from China and Korea, have captured a significant share of the domestic market in India.

"Industry sources report that there is a significant underutilisation of installed domestic capacity in the electrical equipment industry. Present capacity utilisation stands at 70 per cent," the minister said.

As per information received from EEPC India ( Engineering Exports Promotion Council), electrical equipment imports from China increased by 61.53 per cent from 2009-10 to 2012-13, about twice the growth rate of such imports from the rest of the world.