The electrical equipment industry was worth US$ 13.4 billion in FY 12. The market expanded at a compound annual growth rate (CAGR) of 10.5 per cent over FY 07–12. The generation equipment segment garnered revenues of US$ 7.6 billion in FY 12.
Boilers is the major segment, accounting for 62.9 per cent of the total revenues in FY 12. Turbines accounted for 27.4 per cent, while generators accounted for the remaining 9.7 per cent. Also, exports of electrical machinery increased to US$ 3.06 billion in FY 13 from US$ 3.4 billion in FY 12.
India’s energy requirement expanded at a CAGR of 6.8 per cent over FY 06–13 to reach 998.1 billion units. By 2022, installed power capacity in the country is expected to reach 350 gigawatt (GW) from 211 GW in 2012, due to increasing industrialisation and economic development.
The government’s aim to provide electricity to over 100,000 rural areas and 22.6 million households below poverty line will also boost demand for power. The government 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 (SEZs) for the sector. Due to policy support, cumulative FDI of US$ 3.2 billion (1.7 per cent of total FDI inflows) came into the country during the period April 2000 to February 2013.