Alarmed by rising imports of electrical equipment from China, the Indian Electrical and Electronics Manufacturers’ Association (IEEMA) is seeking Prime Minister Manmohan Singh’s intervention to safeguard the industry.

In a letter written to the Prime Minister, it has suggested measures to curb imports, and help revive the flagging fortunes of the domestic manufacturers.

The association said a surge in imports of electrical equipment in recent years was significantly impacting the commercial viability of local manufacturers besides threatening thousands of jobs in the industry. “During 2005-13, India’s imports of electrical equipment have increased at a compound annual growth rate (CAGR) of 24.67 per cent in rupee terms, and are at Rs 64,674 crore in 2012-13,” the IEEMA says in the letter “China’s share in Indian imports of electrical equipment has increased in the last few years, and now they stand at 44.92 per cent in 2012-13. Imports from China have grown at a CAGR of 45.46 per cent during 2005-13, and are at Rs.29,054 crore in 2012-13,” the letter states.

The association said imports of electrical equipment had assumed threatening proportions, and had now close to 40 per cent of the domestic electrical equipment market. There is also a significant underutilisation of domestic installed capacity.

Since Chinese manufacturers are being given export subsidies by their government, imports from China are escalating every year. This makes the local industry non-competitive, the letter states.

“Domestic manufacturers of electrical equipment earnestly request the government to provide greater encouragement to indigenous manufacturing by initiating time-bound action,” the IEEMA states in the letter quoting association President J. G. Kulkarni as saying.

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