Industrial Automation Magazine India

Indian Electrical equipment industry records growth of 13 percentage for 2022-23: IEEMA

Published on : Tuesday 20-06-2023

The Indian Electrical equipment industry has once again gained momentum by clocking an impressive growth of 13 percentage  in 2022-23.

New Delhi, June 18, 2023: The electrical and industrial electronics industry has witnessed a record double-digit growth of 13% in 2022-23. Industry hunger for growth, coupled with positive policy changes and various initiatives undertaken by the Government and industry, have led to 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 percent of the entire sector.

A substantial improvement was witnessed in the 1st & 3rd quarter of 2022-23 which resulted in a sharp rise in the performance. During this period, the industry grew by 28.4% in Q1 and 15.5% in Q3. The astonishing growth of 1 in 3% is propelled by growth in segments like Transformers (17.5%), Cables (19.4%), Meters (15%) and Rotating Machines (5.7%).

The financial year 2022-23 also proved to be a landmark year for the electrical equipment industry with exports touching 94,169 crores in 2022-23 as compared to 30,670 crores in 2013-14, registering growth of 3.07 times with a CAGR of 13.3%. in 9 years. The increase in exports signifies the strength of the Indian electrical industry and positive Government interventions. IEEMAs Vision is to achieve Exports of USD 25 Billion by 2030. We believe there is a larger opportunity to become the manufacturing & 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.

Mr 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 (~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 & 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.

Mr 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 the 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 decline in growth of some of the segments.

Mr Sunil Singhvi, Vice President, IEEMA said, The exports have grown more than 3 times in the last 9 years. For the year 2022-23 the Indian electrical industry recorded an increase of 30% as compared to last year. IEEMAs Vision is for the industry to achieve exports of USD 25 billion by 2030.

IEEMA will increase its outreach internationally this year, we will mount business delegations, 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 Ms Charu Mathur.