Our Bureau, New Delhi, Aug. 26
The electrical equipment industry, after four consecutive quarters of decline in growth, reported a 2 per cent increase during the April-June of this fiscal.
The growth, though miniscule, was because of an increase in exports. The growth in domestic orders, however, continued to be negative, said the Indian Electrical and Electronics Manufacturers' Association (IEEMA).
The sluggish growth in the country's power sector, delays in project execution, and the precarious financial situation of State power distribution companies continue to severely hit domestic electrical equipment manufacturers.
The industry has witnessed some growth because of orders from transmission and sub-station projects, power generating stations, especially of renewable energy such as wind, and R-APDRP projects.
Meanwhile, the depreciating rupee against the dollar has made critical imported raw material expensive.
Manufactures are seeing export growth to countries such as the US, Germany, the UK, Australia, Canada, the UAE, Saudi Arabia, Nigeria and Kenya. Imports of power transformers, insulators and AC motors and generators continued to increase and are capturing an increasingly larger share of the domestic market despite depressed demand, IEEMA said.
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