India’s electrical equipment industry is forecasted to double in size over the next seven years, reaching a market valuation of $130 billion by 2030, Hamza Arsiwala, President of the Indian Electrical & Electronics Manufacturers’ Association (IEEMA) said.
“Medium term horizon for growth (7 years) by 2030 – Industry growth expected to double and exports to grow 2.5 times by 2030,” he noted.
In an interaction, Arsiwala highlighted that the industry has shown a V-shaped recovery following the COVID-19 pandemic, with an average compound annual growth rate (CAGR) of 8% over the past five years.
In the fiscal year 2022-23, the industry’s size surpassed $60 billion, bolstered by exports amounting to $11 billion. Notably, exports have seen a robust growth at a 17% CAGR in rupee terms over the last five years, bolstered by India’s strategic free trade agreements (FTAs) with countries like Australia and the UAE.
The electrical and allied electronics industry, primarily supplying the transmission and distribution (T&D) space for renewable energy projects, plays a vital role in the renewable energy sector. Although it is challenging to ascertain the exact market share in renewable energy, Arsiwala noted that the majority of the supplies are channeled towards renewable energy projects, given its dominance in overall generation.
Besides renewable energy, the industry’s growth is significantly contributed by other sectors such as railways, real estate, smart infrastructure projects, core sector industries, data centers, defence, and charging infrastructure.
On the environmental front, the industry is actively assessing and reviewing its carbon emissions policies. The pace of implementing these changes varies across different types of companies, from multinational corporations to small and medium enterprises.
Employment generation is another area where the industry makes a substantial impact. According to Arsiwala, the electrical and allied electronics industry accounts for over 2.2 million jobs, representing about 7.2% of the total manufacturing segment in India’s GDP and around 45% in the capital goods sector.
Looking ahead, the industry is set to more than double its global export share by 2047, marking a period of significant growth and expansion in the international market.