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India's electrical equipment industry, while marking
significant growth, grapples with challenges including high import dependency
for key components and a scarcity of accredited testing facilities, Indian
Electrical & Electronics Manufacturers' Association (IEEMA) President Hamza
Arsiwala told ET Energyworld in an interview.
"Significant import dependency on various supply chain
items and limited availability of accredited testing facilities for electrical
equipment present global constraints," Arsiwala said, highlighting the
hurdles facing the industry. He pointed out specific issues hampering Micro,
Small and Medium Enterprises (MSMEs), such as liquidity challenges posed by the
bank guarantee regime, non-uniform implementation of PVC clauses, and frequent
price fluctuations in essential raw materials.
Despite these challenges, the industry has experienced a
V-shaped recovery post-COVID, with double-digit growth over the past two years
and a Compound Annual Growth Rate (CAGR) of 8 per cent over the last five
years. "The industry's size exceeded USD $60 billion in FY22-23, with
exports amounting to USD $11 billion," Arsiwala said, underscoring the
sector's resilience and growth trajectory.
Arsiwala also emphasized the need for clearer state-level
energy policies, particularly in emerging sectors like e-mobility, renewables,
and green hydrogen, to address the compliance burden and facilitate easier
access to financing for MSMEs.
Looking ahead, the IEEMA President outlined the industry's
adaptation strategies to grid stabilisation challenges and the integration of
intermittent renewable energy sources. "The integration of grid-level
energy storage, along with R&D and innovation, is seen as a solution to
manage the intermittent nature of renewable energy sources," he stated,
indicating the sector's move towards sustainability and efficiency.
Despite the obstacles, Arsiwala is optimistic about the
future, envisioning substantial expansion by 2030, driven by India's economic
growth and the global shift towards sustainable energy. He highlighted the
industry's efforts in preparing for the integration of green hydrogen into
India's energy sector, advocating for supportive policy frameworks and
fostering innovation and R&D to overcome current challenges and capitalise
on future opportunities.
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INDUSTRIAL PRODUCTS FINDER (IPF) is India’s only industrial product portal. Referred to as the ‘Bible’ of the manufacturing sector in India,
INDUSTRIAL PRODUCTS FINDER (IPF) is India’s only industrial product portal. Referred to as the ‘Bible’ of the manufacturing sector in India,
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