— Girish Shirodkar, Global Partner & MD, Strategic Decisions Group - India & Asia Pacific
Most of the equipment used in power plants is being imported from China due to cost advantage. Chinese imports are relatively cheaper because equipment makers from that country benefit from low interest rates and an undervalued currency. As a result, domestic manufacturing companies are facing the heat to compete with the Chinese manufacturer as they are unable to offer the equipment. This is limiting the industrial production output in the country for power plant equipment.
Solutions: Provide a level playing field to domestic manufacturers by preventing dumping by Chinese equipment suppliers and levy some minimal tariff protection. A number of players have already set manufacturing plants in India.