“We are seeing green shoots of recovery in core sectors – mainly government-owned metals and oil and gas industries.
With India aiming to hit 500 GW in renewable energy by 2030, the pace of development in sunrise sectors will also pick up. Renewable capacity addition is also likely to be ramped up in 2022, meaning a higher requirement for substations, transmission corridors as well as battery energy storage. Rail electrification, urban metro and regional transport system will also drive growth, bringing in fresh opportunities for us.
Since the focus is high on sunrise industries, there is tremendous potential in technology localization in areas such as remote power monitoring, predictive maintenance, EV charging, green hydrogen and energy storage.
Building the required know-how and skills will underpin all efforts in our pivot to cleaner, greener and smarter energy, depending heavily on partnerships with academia.
Yet challenges ranging from new variants of the Covid-19 virus such as Omicron, high commodity prices, material shortages especially pertaining to semiconductors will likely weigh on market recovery. Businesses may be finding ways to remain competitive in their pricing. This could also strain for some time the market quest for fresh investments in sunrise sectors.
We expect industrial capex to pick up only by the second half of 2022.”
N. Venu, in a company statement, was sharing his views on the business climate and prospects for Hitachi Energy India in the year 2022
