India is the Appropriate Destination to Procure Electrical Equipment, says MoS for Commerce

· Electrical equipment market production is estimated to touch USD 100 billion by 2022

With tremendous growth in the power sector and companies capable of manufacturing new technology based equipment in the electricity sector India is the appropriate destination to procure and invest in this sector, Minister of State (MoS) for Commerce and Industry Mr Som Parkash has said. In his address to industry executives, potential buyers of Indian electrical equipment and other participants in the Electricity Expo 2021, Mr Parkash stated that India's power sector is ranked fourth in the Asia Pacific region out of 25 nations.

"Indian exports of electrical machinery and equipment witnessed a 23% CAGR reaching US$ 15.1 billion in 2019-20 from US$ 5.3 billion in 2013-14. The Indian electrical equipment sector contributes about 8% to the manufacturing sector in terms of value and 1.5% to the overall GDP," the Minister noted.

Speaking at the inaugural session of the four-day event, EEPC India Chairman Mr Mahesh Desai said that the financial year 2021-22 has seen the V-shaped recovery indicating exports target set for the fiscal is achievable. Further, macro-economic indicators and high-frequency data suggest the economy is pushing itself back on track. Mr Desai noted that with Manufacturing and Services PMI surpassing 52, NIBRI (Nomura India Business Resumption Index) crossing 100, foreign exchange reserve being at all time-high of US$ 633.558 billion, the overall exports target of US$ 400 billion at the end of this fiscal is achievable.

"Electrical equipment market production is estimated to touch USD 100 billion by 2022," he added. Mr Desai hoped that the tough times would soon pass away giving everyone an opportunity to start with physical activities.

With engineering goods exports from the country consistently recording high double-digit growth month after month and surpassing previous best performance, the sector is poised to consolidate its position in traditional markets such as US and Europe besides making inroads into new territories.

USA ranks as the number one destination of India’s export of generation equipment, importing almost 33% of India’s export of the same in 2020. The share of other top nations is Germany (5.5%), Bangladesh (4.1%), Japan (3.6%) and France (3.1%).

"Indian electrical equipment industry Mission Plan (2012-22), aims to make India a preferred destination for production of electrical equipment. It also aims to achieve an output of US$100 billion by balancing the trade deficit in the sector," said Mr Arun Kumar Garodia, Vice Chairman, EEPC India.

Convenor of the Product Panel on Electrical Machinery, EEPC India, Mr CD Shah said that electricity demand in the country has increased rapidly and is expected to rise further in the years to come.

"In order to meet the increasing demand for electricity in the country, a massive addition to the installed generating capacity is required," he said.

Mr K. Manickam, Convenor of the Product Panel on Renewable Energy Equipment, EEPC India added, "The nation has placed high hopes on solar power delivering a large portion of its 450-GW renewable energy target by 2030 as it aims to reduce its fossil-fuel reliance."