Electrical equipment industry output to be raised to $100 bn by 2022

Electrical equipment industry output to be raised to $100 bn by 2022

Wed, Jul 24 2013

India plans to increase the output of the electrical equipment industry to $100 billion by 2022 and become a destination of choice for overseas producers of such equipment.

The size of the industry is valued at around $25 billion, a fourth of it made up of power generation equipment, and transmission and distribution contributing the rest. The industry provides direct employment to about 500,000 people and indirectly to about 1 million.

The target was outlined in a 2012-2022 mission plan for the electrical equipment industry released on Wednesday by the ministry of heavy industry.

"It is imperative to build our own industry to make it competitive for its global growth, also looking at ways and means to draw in more investment," said Praful Patel, minister for heavy industry, who launched the plan.

"The size of the sector is growing, and companies can pool their resources for investing in R&D (research and development) for moving ahead," Patel said.

Patel said the Indian electrical industry's progress has been hampered by a slowdown in the entire power sector, conceding that policy makers may have adopted a lopsided approach that may have exacerbated its problems. Imports have grown, especially from China, while exports have lagged.

The power sector is battling fuel shortages and problems in land acquisition and securing mandatory approvals, stalling several projects.