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Electrical equipment industry witnessed negative growth in FY13

MUMBAI: Sluggish demand and higher imports have resulted in the electrical equipment industry registering a negative growth of 8 per cent in FY13, apex industry body Indian Electrical and Electronics Manufacturers Association said. 

The USD 25 billion industry witnessed a negative growth of 8 per cent in FY13 due to sluggish demand, higher imports and absence of any protective policy measure for FY13, according to the report by Indian Electrical and Electronics Manufacturers Association (IEEMA). 

The negative growth of this magnitude has been witnessed for the first time in the last 10 years. 

In FY12, the industry registered a growth of 6.6 per cent and was facing massive project execution delays, mostly by the state-run transmission and distribution companies and an unprecedented credit squeeze due to economic slowdown, 
IEEMA said. 

"The electrical equipment manufacturing industry requires the focused attention of the government to protect our interests by providing us a level playing field that would equip the industry to fight imports," said IEEMA President J G Kulkarni. 

Slackening demand in the power sector, continuous rise in imports of electrical equipment, especially in China and South Korea and an absence of a level playing field is threatening the existence of the Indian players, he said. 

"Imports of electrical equipment grew by more than 20 per cent in FY13, thus eating into the domestic manufacturer's pie," Kulkarni said. 

IEEMA believes assured availability of quality power at reasonable cost will not only act as a catalyst in the socio-economic development of the nation but also enhance the global competitiveness of the domestic industry leading to greater employment generation and higher levels of per capita income, he added.