Chinese companies are building $7bn of power plant equipment for customers in India, in a business that is underpinning growing trade between Asia's second and third largest economies.

Chinese producers are processing orders from India for 20,000 megawatts of boilers, turbines and generators, the main equipment in a power station, according to Lloyd's Register, which provides third-party assurance certification services for the power business.

“India and China both need each other for growth. There's huge demand on the Indian side and there's huge supply available on the Chinese side – and that is creating a big opportunity for trade,” said Swamina- than Krishnaswamy, vice- president for India chemicals and power and Sino-India business development at Lloyd's Register.