NEW DELHI: The department of heavy industries and the makers of electricalequipment makers have chalked out a planto revive the 1.20 lakh crore industry hit by a poor order book and cheap imports.
A 10-year Indian Electrical Equipment Mission Plan till 2022 has identified five areas of concern: competitiveness, technology upgrade, skills development, exports and conversion of latent demand.
"After growing 13.7% in 2010-11, growth slipped to 6.9% in 2011-12. After ten years, the industry has witnessed a fall in 2012-13. The sluggish domestic demand on account of the slowdown in the country's power sector and a surge in imports in recent years has been primarily responsible for the current situation," said Indian Electrical & Electronics Manufacturers' Association (IEEMA) president JG Kulkarni. IEEMA says the first eleven months of 2012-13 saw a drop of 7.3% in the industry.
Now five committees consisting of representatives from equipment makers and various ministries have created a road map for strategic and policy interventions.
Together, they will ask government departments, bodies and authorities to rationalise procurement process and give priority to domestic players. According to ministry's estimates, electric equipment makers account for 1.5% (or $4.6 billion) of the country's total exports, whereas its share is about 3.2% (or $15.7 billion) of the total imports. The trade deficit in electric equipment is widening as its exports have increased at a CAGR of 9.7% during the last five years whereas imports have increased at 27.2%.