After a very bad 2009 for the Capital Equipment Industry (construction equipments in particular), the demand has started looking up since December 2009. However, the input costs are increasing, whereas, the price realization in the market are under tremendous pressure. Therefore, the Sops given for capital equipments during the downturn period, especially reduction of excise duty should continue, at least for one more year. The market is still not ready to accept any increase on investments on capital equipments.Government should also bring in specific guidelines to stop import of cheap equipments from neighboring countries who are heavily subsidizing their exports, not only to help the domestic manufacturing industry, but also to ensure use of high quality performing equipments on the ambitious infrastructure projects that are coming up. Import of these cheap and under-performing equipments will also hamper the progress of the infrastructure development in India. Finally, application of uniform VAT tax should be considered in all states for all types of construction equipments."
Mr. Anand Sundaresan
Managing Director,
SCHWING Stetter India Private Limited
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