Power equipment exports dip 50% in last 2 yrs: FGi

Sharath Chowdary

With the global economic slowdown, India’s electrical power equipment exports have declined around 50% in the past two years, Federation of Gujarat Industries (FGi) Vice President Nitin Mankad told The Dollar Business Bureau.

Nitin Mankad said, “Countries from Europe, Africa and Middle East are the main export markets for Indian power equipment. Due to the slowdown in the world economy, the imports have decreased heavily in the last couple of years.”

Due to the initiatives taken up by the Indian government to electrify rural areas, the country’s power equipment has registered 6.8% growth in FY 2016 over the previous fiscal year. Though the growth is currently stagnant, there is lot of scope for this industry in the next few years, he said.

Explaining about the bright prospects of the industry, Mankad said, “The Government of India has plans to achieve 100% electrification in the country and to generate 175 GW renewable energy by 2022. These ambitious targets of the government would definitely improve the order flow of electrical equipment industry.”

According to Indian Electrical and Electronics Manufacturers’ Association (IEEMA), the electrical and industrial electronics industry has together seen a growth of 4.85% in Q4 of FY 2016 and with policy changes and other initiatives by the industry and government, signs of revival are visible in the sector.

Electrical equipment includes transformers, transmission lines, meters, insulators, conductors, cables, switchgears, towers and other products. Gujarat is the leading state in the production of electrical equipment in India with the presence of more than 33% of the overall electrical equipment and cable manufacturers. Companies like ABB, Alstom, Suzlon, GE and Siemens have their manufacturing units at Vadodara, Gujarat.

Mankad spoke to the media after announcing India’s largest electrical expo – SWITCH, to be held in Vadodara during October 6-10, 2016. The Government of Gujarat is hosting this event with FGi as the organising partner.

Speaking about the event, Surinder Kumar Negi, MD of Gujarat Energy Transmission Corp said, “SWITCH will offer a great platform for electrical companies from Telangana and Andhra Pradesh as the governments of both the states have promised to deliver 24X7 power to the people. This event can help these companies to meet, network and explore business opportunities in the power and electrical sector.”

Along with the expo, parallel events such as World Electrical Buyers’ Summit (WEBS) and Innovation and Technology Summit will be held to address relevant challenges and critical issues of the sector, he added.

During the event, over 100 startups will showcase their products. Among them, 15 projects will be selected on the basis of innovative technology. These 15 projects will be funded by the government with up to Rs.1 crore each, Mankad informed.