The electrical equipment industry in India, which caters to the needs of the power generation, transmission, distribution and energy management sectors, has to grow four times to $ 100 billion over the next decade if its contribution to the country's economic growth has to be maintained, the government ha said.
The $25 billion industry comprises manufacturers of power transformers, capacitors, cables and rotating machines among other equipment. The industry is currently facing troubled times at the back of intense competition from cheaper Chinese imports and slowing domestic sales leading to huge over-capacity creation. The electrical equipment sector accounted for 1.46% of India’s Gross Domestic Product (GDP) last fiscal.
"While the importance of the domestic electrical equipment industry for GDP growth and related employment is growing, it is paramount to see the growth momentum maintained. This sector has to at least double in sales and reach a figure of US$ 100 billion in the next 10 years," said Ambuj Sharma, Joint Secretary, Department of Heavy Industries (DHE), Ministry of Heavy Industries & Public Enterprises.
The power generation capacity addition target in the current Plan period is expected to be 88,000 Megawatt (Mw). Also, close to 100,000 Mw of additional capacity addition is envisaged in the 13th Plan period beginning 2017. The government plans to enhance capacity in the transmission and distribution sector in line with the increase in power generation capacity.
“The Indian electrical equipment industry must, therefore, increase its preparedness and enhance its competitiveness to meet the current and future demands of our power sector," Sharma said. He added that a plan to coordinate the efforts of all stakeholders is needed to sustain the growth of the domestic electrical equipment industry and enhance its global competitiveness