The electrical equipment industry was worth US$ 13.2 billion in FY11. The market expanded at a compound annual growth rate (CAGR) of 11.5 per cent over FY07-11. The generation equipment industry in India is expected to increase to US$ 27.5 billion by 2022 from US$ 5.7 billion in 2011.
Boilers is the major segment, accounting for 67.9 per cent of the total revenues in FY12. Turbines accounted for 21.3 per cent, while generators accounted for the remaining 10.8 per cent. Exports of electrical machinery increased to US$ 5.09 billion in FY12 from US$ 5.06 billion in FY11. Transformers and generators were the primary drivers of increase in exports.
India’s energy requirement expanded at a CAGR of 6.8 per cent over FY06–13 to reach 998.1 billion units. By 2022, installed power capacity in India is expected to reach 350 gigawatt (GW) from 180 GW in 2011 due to increasing industrialisation and economic development.
The Government of India (GOI) has delicensed the electrical machinery sector and has allowed 100 per cent foreign direct investment (FDI).It has also approved significant number of special economic zones (SEZ) for the sector. Due to policy support, cumulative FDI of US$ 3.2 billion (1.7 per cent of total FDI inflows) has flown into the country between April 2000 to February 2013.