'Hope Indian manufacturers pay attention': Zoho's Sridhar Vembu backs idea to import used machines from China

Zoho founder Sridhar Vembu on Monday endorsed a call for Indian manufacturers to seize the moment and acquire high-quality used machinery from China. "We need the machines and factories and we have the labour! We are going to do this,” Vembu said while responding to an idea put forward by Prakash Dadlani, who helps entrepreneurs manufacture in India. 

“For Indian manufacturers, this is a critical moment to act with foresight and agility,” Dadlani wrote. “We need to adopt a strategic approach to capital investment, by snapping up used machinery. High-quality equipment at a fraction of the original cost are becoming increasingly available in China. We just picked up three nearly new 90-ton injection moulding machines for the price of a single new one, and we’re getting incredible offers on used moulds as well.”

Dadlani advised Indian manufacturers to “put out the word to suppliers, partners, and industry contacts to get deals on machinery, equipment, and other capital assets to bolster our manufacturing capabilities, enhance production capacity, and position ourselves as a strong player in this shifting global landscape.”

Vembu agreed, adding, “Great advice. I hope Indian manufacturers pay attention. Go to China, find high quality used machinery at a bargain. China has massive overcapacity and also labour shortages in manufacturing.”

The comments came just hours after Vembu laid out a broader vision for India's economic strategy in a shifting global order. In a detailed post earlier Monday, he highlighted seven priorities—from food and energy security to R&D, factory-building, and navigating Chinese overcapacity.

“We will face an onslaught of Chinese goods, from steel to toys to EVs and everything in between,” he wrote. “What we think of as commercial aggression is really desperation in the face of massive overcapacity the Chinese have unwisely built. Navigating this will be a huge challenge.”

He called for a nationwide manufacturing push: “Time to build factories. We need a 3-5 year sprint to build factories everywhere. We must push importers and distributors of imported goods to set up manufacturing units.”

On the capital goods front, he added, “We must prioritize importing capital goods for production as opposed to consumer goods that we must aim to produce.” Vembu also floated the idea of negotiating imports and external debt payments in rupees, and advocated for aggressive private sector-led R&D investments, including potential CSR-like obligations and quick write-offs for R&D capital spending.

He concluded with a call for global responsibility: “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.”