The Indian Electrical and Electronics Manufacturers’ Association (IEEMA) reports that the electrical and industrial electronics industry has witnessed a record double-digit growth of 13 percent 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 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 organizations, 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 percent in Q1 and 15.5 percent in Q3. The astonishing growth of 1 in 3 percent is propelled by growth in segments like Transformers (17.5 percent), Cables (19.4 percent), Meters (15 percent) and Rotating Machines (5.7 percent). 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 percent. in 9 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 US$ 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.

India is the third-largest producer and consumer of electricity worldwide, with an installed power capacity of 416 GW by end of FY 22-23. As per the National Electricity Plan (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 FY 27 & FY 32 respectively, to achieve over 50 percent 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 substation capacity. The m 2022-2027 is estimated to be INR 14,54,188 crore and for the period 2027-2032 has been estimated to be INR 19,06,406 crore. The tentative cost of the transmission system for evacuating 279 GW of RE addition by 2030 is INR 2442 billion.

Rohit Pathak, President, IEEMA, stated, “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.”

On the industry growth, Hamza Arsiwala, President-Elect, IEEMA, commented, “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.”

Sunil Singhvi, Vice President, IEEMA, added, “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 percent as compared to last year. IEEMA’s Vision is for the industry to achieve Exports of US$ 25 Billion by 2030. For achieving this target IEEMA is working closely with Government and industry on inward and outward measures both which includes: (a) strengthening quality, safety and reliability of Indian Electrical products; (b) externally, assisting the Govt through inputs to renegotiate upcoming FTAs to correct any trade distortions and reciprocal acceptance of Type Tests, Product Certifications and Testing Facilities (NABL approved eg CPRI, ERDA etc.; and (c) Map India’s competence and emerging destinations; make targeted efforts to capture new export markets. We would welcome and will actively work with various stakeholders to make outreach efforts to tap the new markets.”

Similarly, Charu Mathur, DG, IEEMA, said, “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.”

For more information: www.ieema.org