Chinese Gensets capture Indian markets, threatening domestic industry

November 14th, 2007 - 1:49 am ICT by admin  
Earlier, there were around 200 such industrial units in Agra, but today there number has been reduced to a mere 50 units.

Chinese diesel powered units are preferred due to their better technology, low pollution and above all comparatively cheaper prices.

While Indian manufacturers try to sell their wares citing reliability, there are few takers in the market.

“Chinese generators and the pumps are almost one-third of our cost and they are easy to carry. We offer generators with a life of atleast 15-20 years. As of now our production has been reduced to just 60 percent, it might further decline. Unemployment will increase and it surely is not good for the industry,” said Manish Dunoriya, Director of Dunoriya group of companies.

The government’s decision to remove the protection to the Indian industry from foreign competition, sounded the death knell for the domestic manufacturers of diesel powered generating units.

“Due to the low cost of Chinese products farmers are attracted towards them. The agricultural policy of the government is a big flaw as the farmers get the money from the banks by bribing the bank managers but engine is not sold,” said Kiran Dhawan, President, Foundry Nagar Industries Association.

A good number of units have already closed down or have diversified into other businesses.

“Earlier there used to be so much activity for shopkeepers but today there is no business for them. It is clearly visible how the Chinese have taken over the market from the Indian manufacturers,” said Rajiv Gupta, an entrepreneur.

Domestic manufacturers strongly believe that unless the government takes some drastic steps including imposing higher customs duty on imported electrical items, the Indian units would close down soon.(ANI)

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