Vision 2022 for the Indian Electrical Equipment Industry is to make India the country of choice for the production of electrical equipment and reach an output of US$ 100 billion by balancing exports and imports. The rising aspirations of India and a growing economy are spurring domestic demand as the electrical equipment industry is increasing its preparedness and enhancing its competitiveness to meet the current and future demands of consumers. India is targeting a gross domestic product (GDP) growth rate of 8-9% in the coming years and to facilitate this growth, the power sector needs to be the catalyst, which is already witnessing heavy investments to meet India’s increasing power demand.
The demand for electrical equipment in India is expected to witness a significant expansion on the back of the growth of the power sector. By 2022, domestic demand for generation equipment industry is expected to be between $25 and $30 Bn. For Transmission & Distribution industry, it is estimated to be between $70 Bn and $75 Bn. The government is likely to add around 88.5 GW and 93 GW, respectively, under its 12th and 13th Five Year Plans.
India has come a long way in electrical manufacturing and the domestic electrical equipment industry is expected to witness excess manufacturing capacities. The ‘Make in India’ campaign by the government of India is designed in a manner to give an impetus to manufacturing in India and make India a Global Manufacturing Hub. The target of ‘Power for All’ plans to add 93 GW during 2017-2022 which is expected to generate a huge demand for power transmission & distribution equipment. Incentives for capacity addition in power generation are bound to increase the demand for electrical machinery. The Government is promoting the development of Electronics Manufacturing Clusters (EMCs) throughout the Country to provide world-class infrastructure and facilities. India is poised to become a global hub for Electronics System Design and Manufacturing by encouraging and driving capabilities in the Country for developing core components, including chipsets and by creating an enabling environment for the industry to compete globally.