'Import of Chinese equipment leads to lower use of capacity'

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.