Indian Manufacturers Urged to Seize the China Machinery Opportunity
Zoho founder Sridhar Vembu has thrown his support behind a growing call to import high-quality used machinery from China. The endorsement came in response to an idea shared by manufacturing expert Prakash Dadlani, who emphasized the strategic value of acquiring top-grade used equipment at deeply discounted prices.
As China faces economic slowdown and industrial overcapacity, Vembu believes it’s the perfect moment for India to accelerate its manufacturing growth. “We need the machines and factories and we have the labour! We are going to do this,” said Vembu in a social media post on April 7, 2025.
With India striving to become a global manufacturing powerhouse, this move could serve as a turning point for domestic production, offering both speed and cost-efficiency.
A Strategic Moment for Indian Manufacturing
Dadlani’s Vision: Capitalize on China’s Oversupply
Prakash Dadlani, who supports Indian entrepreneurs in manufacturing, sparked the conversation by highlighting an opportunity most might miss — China’s second-hand machinery market.
“We need to adopt a strategic approach to capital investment,” Dadlani wrote. “High-quality equipment at a fraction of the cost is becoming increasingly available in China. We just picked up three nearly new 90-ton injection moulding machines for the price of one new one.”
He urged manufacturers to “put out the word to suppliers and partners to grab deals that could boost production capacity and strengthen India’s position in a rapidly evolving global economy.”
Vembu’s Endorsement: A Wake-Up Call for Indian Industry
“Go to China, Find Bargains”
Backing Dadlani’s insights, Sridhar Vembu echoed a clear message: Now is the time to act. “Great advice. I hope Indian manufacturers pay attention,” he said. “Go to China, find high-quality used machinery at a bargain. China has massive overcapacity and also labour shortages in manufacturing.”
Vembu’s support lends credibility to the idea — and acts as a signal to Indian businesses to move quickly and smartly.
Vembu’s Broader Economic Vision for India
A Call for Manufacturing-Led Growth
Earlier the same day, Sridhar Vembu shared a detailed post outlining seven key priorities for India’s economic transformation in a shifting global order. His focus? Building factories, securing food and energy, and prioritizing production over consumption.
“We will face an onslaught of Chinese goods — steel, toys, EVs, and more,” Vembu warned. “This isn’t just competition; it’s desperation from China’s overbuilt manufacturing sector. Navigating this will be a huge challenge.”
He called for a “3-5 year sprint to build factories across India”, urging importers and distributors to transition into domestic producers.
Capital Goods Over Consumer Goods
Invest in Tools, Not Toys
A critical point in Vembu’s plan is the shift in mindset from importing consumer goods to importing capital goods that enable production.
“We must prioritize importing capital goods for production,” he wrote. “Let’s aim to produce what we consume instead of importing finished products.”
This aligns perfectly with the idea of buying used machinery: cost-effective, efficient, and scalable.
R&D and Financial Reforms: Laying the Foundation
More Incentives for Private Innovation
Vembu also called for aggressive R&D investments, ideally led by the private sector. His ideas include:
- CSR-like obligations for R&D funding
- Quick write-offs for R&D capital spending
- Exploring rupee-based international payments to reduce external debt risks
A Global Responsibility: Knowledge for the World
Sharing Innovation with the Poor
In a powerful conclusion, Vembu emphasized that India’s growth should uplift others, not just itself.
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“India must liberally share the light of knowledge — gained from our R&D investment — with poorer nations… That is the only way to a more just and more stable global order.”
Conclusion: A Golden Window for Indian Industry
Sridhar Vembu and Prakash Dadlani’s message is clear: Don’t wait. Act now. As China’s economy slows and surplus machinery floods the market, India has a rare window to strengthen its manufacturing base at low cost.
By importing capital goods, building factories, and investing in R&D, India can position itself not just as an alternative to China — but as a leader in ethical, scalable, and inclusive global manufacturing.
Disclaimer
This article is for informational purposes only. The views expressed are those of the individuals quoted and not of Money Flow Insight. Readers are advised to do their own research before making any business or investment decisions.
