Electrical & electronic industry grew 11.47% in Q3FY14: IEEMA

The electrical and industrial electronics industry witnessed a growth of 11.47 per cent during October-December 2014 although the sector continued to be plagued by high imports, according to industry body IEEMA.
"Although high imports, which was nearly over Rs 2,000 crore in 2014, still plague the industry, policy changes and various initiatives by the industry are eventually showing signs of evolution for the sector," said IEEMA president Vishnu Agarwal in a statement.
Cable, low voltage and high voltage switchgears were the major drivers of the sector, but power transformers and low-tension motors continue to show declining trend, said Indian Electrical and Electronics Manufacturers Association (IEEMA).

"There is a positive momentum in sub transmission and distribution of 66 kv products and below. The growth in turnover of MCB (miniature circuit breaker), energy meters and cables is a good sign," he said.
According to the apex industry body, conductors and energy meters have registered a tremendous growth in their turnover at 44.9 percent and 28.2 percent, respectively.
IEEMA believes that the reason for this growth is the procurement of these products by major PSUs and utilities.

Growth was also observed in transformer operational meter and single phase multifunctional meters (smart meters), as the power industry is opting for smart and energy efficient products. Also, the growth in LV product and FHP motors indicated some industrial activity.

Rotating machines, however, continue to show negative growth as there is low awareness of energy efficient motors.
"We still need to watch out for the high rate of imports of EHV transformers, reactors, cables and insulators, which harm domestic production. Indian manufacturers are well equipped and have the capacity to manufacture these products," IEEMA director general Sunil Misra said.