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Indian electrical equipment industry registered a negative growth of eight% in 2012-13, for the first time in ten years. Sluggish demand, higher imports and absence of protective policy resulted in this de-growth, said industry body Indian Electrical and Electronics Manufacturers’ Association (IEEMA).
As per annual data released by IEEMA, the industry had clocked a growth of 6.6% a year earlier, in 2011-12. The industry, data said, is also facing massive project execution delays due to state-run transmission and distribution companies and an unprecedented credit squeeze due to economic slowdown.
The worst hit are the transformers which registered a de-growth of 26% in 2012-13 compared to a growth of 25% a year earlier. All, except the transmission sector, decelerated in the last fiscal year.
“An efficient power supply system is a key ingredient for economic growth and quality of life. The electrical equipment manufacturing industry requires the focused attention of the government to protect our interests by providing us a level playing field that would equip the industry to fight imports,” said J G Kulkarni, President of IEEMA.
Slackening demand in the power sector, continuous rise in imports of electrical equipment, especially China and South Korea and an absence of a level playing field is threatening the existence of the Indian players, IEEMA said. The imports of electrical equipment has grown more than 20% in the last fiscal, thus eating into the domestic manufacturer’s pie.
On the other hand, domestic equipment makers are stepping up exports, especially to Africa. The continent is showing demand for AC generators, switchgear, transmission towers and energy meters.
