Indian electrical equipment industry records a growth of 13% in FY23: IEEMA

Home
Industry News
Indian electrical equipment industry records a growth of 13% in FY23: IEEMA

Indian electrical equipment industry records a growth of 13% in FY23: IEEMA

Industry News
Jun 24,23

Indian Electrical and Electronics Manufacturers’ Association (IEEMA) compiled the data for the year 2023-24 which shows high growth in segments like transformers (17.5 per cent), cables (19.4 per cent), meters (15 per cent) and rotating machines (5.7 per cent).

Indian electrical equipment industry records a growth of 13% in FY23: IEEMA

The electrical and industrial electronics industry has witnessed a record double-digit growth of 13 per cent in 2022-23. Industry hunger for growth, coupled with positive policy changes and various initiatives undertaken by the government and industry have led the revival of the sector. The data is compiled by the Indian Electrical and Electronics Manufacturers’ Association (IEEMA), the apex Indian industry association of manufacturers of electrical, industrial electronics and allied equipment. The production volume/quantities of sales data is collected from its member organisations, which represent 90 per cent of the entire sector.

A substantial improvement was witnessed in the first & third quarters of 2022-23 which resulted in a sharp rise in the performance. During this period, the industry grew by 28.4 per cent in Q1 and 15.5 per cent in Q3. The astonishing growth of 1 in 3 per cent is propelled by growth in segments like transformers (17.5 per cent), cables (19.4 per cent), meters (15 per cent) and rotating machines (5.7 per cent).

The financial year 2022-23 also proved to be a landmark year for the electrical equipment industry with exports touching 94,169 crore in 2022-23 as compared to 30,670 crore in 2013-14, registering growth of 3.07 times with a CAGR of 13.3 per cent in nine years. The increase in exports signifies the strength of the Indian electrical industry and positive Government interventions. IEEMA’s vision is to achieve exports of $25 billion by 2030. We believe there is a larger opportunity to become the manufacturing and solutions hub for the world in some of these emerging areas. With most countries and companies moving to a ‘China+1’ approach for their supply chains, there is a window of opportunity for Indian industry to firmly step in even as the government moves to plug into the global economies with strategic FTAs.

India is the third-largest producer and consumer of electricity worldwide, with an installed power capacity of 416 GW by the end of FY22-23. As per the NEP document, the projected all-India peak electricity demand is 277.2 GW for 2026-27 and 366.4 GW for 2031-32. For this, it is projected to raise capacity to 600 GW and 900 GW by FY27 and FY32 respectively, to achieve over 50 per cent share of non-fossil fuel equivalent evacuation network of power till 2030 is also planned with over 50,000 CKM of transmission lines and 4.4 GVA of sub-station capacity. The m 2022-2027 is estimated to be Rs 14,54,188 crore and for the period 2027-2032 has been estimated to be Rs 19,06,406 crore. The tentative cost of the transmission system for evacuating 279 GW of RE additions by 2030 is Rs 2442 billion.

Rohit Pathak, President, IEEMA, said, “India has made a conscious call that as we focus on growth, we will do this in a responsible manner and focus on the Green Transition. As we Build Green (approximately 350 GW of RE electricity over the next 8-10 years will be the largest build-out globally), we will have the opportunity to emerge as a global leader in several of the new technologies and solutions for generation, storage (including grid storage) and consumption. Having made strong progress in Make in India over the past few years, we need to now focus on innovation, with greater emphasis on R&D and stronger engagement of industry with academia and startups - move from Make in India to Imagine in India. We are also working with MoP on how the Indian Testing Facility infrastructure can be strengthened and made world-class.”

Hamza Arsiwala, President-Elect, IEEMA reacting on the industry growth articulated, “We believe that this growth momentum will be sustained since a major chunk of transmission and distribution projects are likely to be ordered in next fiscal. The sector seems to be reviving strongly. The government is taking proactive steps to achieve the RE generation targets. However, there are still concern areas which have led to a decline in growth of some of the segments.”

Sunil Singhvi, Vice President, IEEMA said, “The exports have grown more than three times in the last nine years. For the year 2022-23 the Indian electrical industry recorded an increase of 30 per cent as compared to last year. IEEMA’s vision is for the industry to achieve exports of $25 billion by 2030. For achieving this target IEEMA is working closely with government and industry on inward and outward measures both which include;

(a) Strengthening quality, safety and reliability of Indian Electrical products,

(b) externally, assisting the government through inputs to renegotiate upcoming FTAs to correct any trade distortions and reciprocal acceptance of Type Tests, Product Certifications and Testing Facilities (NABL approved for example CPRI, ERDA etc.

We would welcome and will actively work with various stakeholders to make outreach efforts to tap the new markets.”

“IEEMA will increase its outreach internationally this year, we will mount business delegations, and explore new alliances to help Indian industry to increase its global footprint. We will work with the government to explore export promotion measures as well,” stated DG IEEMA, Charu Mathur.