The new government should take immediate steps, including levying higher customs duty on imported electrical equipment, to protect interests of the domestic industry, the Indian Electrical Equipment Manufacturing Association (IEEMA) has said.
"To stimulate demand for the domestic electrical equipment industry, the government should provide a level playing field in the domestic market for Indian manufacturers to compete with imported equipment," the industry body said in a statement today.
According to IEEMA, which has more than 800 members, the built-up capacity of electrical equipment industry is currently under utilised due to sluggish domestic demand. This is mainly on account of power sector slow down as well as surge in imports of electrical equipment.
"This is significantly impacting the commercial viability of the domestic electrical equipment industry and impacting both the top-line and bottom-lines of the manufacturers. This can have severe long term consequences," it added.
Suggesting various measures, the group has said that only domestic manufacturers should be allowed to participate in bidding for domestically-funded projects.
Besides, IEEMA has suggested that basic customs duty (BCD) on all electrical equipment products should be kept at a uniform rate of 10%.
It said the domestic industry is "facing non-market competition on account of cut throat below-cost entry level prices offered by Chinese manufacturers of electrical equipment".
