According to apex industry body IEEMA, the electrical and industrial electronics industry has witnessed a record double-digit growth of 13 per cent in FY23.
“Industry hunger for growth, coupled with positive policy changes and various initiatives undertaken by the Government and industry have led revival of the sector,” IEEMA said in a release.
The growth rate was worked out by IEEMA (Indian Electrical & Electronics Manufacturers’ Association) based on the actual performance of its member companies that represent around 90 per cent of the total industry.
A substantial improvement was witnessed in the Q1 and Q3 of FY23 when the industry grew by 28.4 per cent and 15.5 per cent, respectively.
The FY23 growth of 13 per cent was propelled by key segments like transformers (FY23 growth: 17.5 per cent), cables (19.4 per cent), meters (15 per cent) and rotating machines (5.7 per cent).
Exports
For the electrical equipment industry, FY23 was a landmark year with respect to exports that grew to Rs.94,169 crore. Over the nine-year period from FY14, exports have growth at an annually compounded rate of 13.3 per cent, IEEMA said. The apex body has set an exports target of $25 billion by 2030.
Emerging global leader
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.”
Growth momentum
According to Hamza Arsiwala, President-Elect, IEEMA, “We believe that this growth momentum will be sustained since 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 decline in growth of some of the segments.”
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Export targets
Sunil Singhvi, Vice President, IEEMA, said, “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 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 both inward and outward measures. We would welcome and will actively work with various stakeholders to make outreach efforts to tap the new markets.”
Global footprint
“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,” noted Charu Mathur, Director General, IEEMA.
