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Indian Electrical Machinery Industry Analysis

October, 2014

By 2022, the installed power capacity in India is expected to reach 350 gigawatts (GW) from 243 GW in 2014, on the back of increasing industrialisation and economic development. The total market size of electrical machinery in India is anticipated to reach US$ 100 billion in 2022 from US$ 25 billion in 2012.

The electrical machinery sector consists of generation, transmission and distribution machinery. The market expanded at a compound annual growth rate (CAGR) of 10.5 per cent over FY07-12. Boilers (16 per cent), cables (15 per cent) and transmission lines and conductors (12 per cent) account for a large chunk of the revenue. The exports of electrical machinery rose to US$ 3.9 billion in FY14 from US$ 3.4 billion in FY12.

The Government of India plans to add 885,000 megawatts (MW) and 100,000 MW of capacity by the end of the 12th and 13th Five-Year Plans, respectively. The government also plans to promote research and development (R&D) and has relieved custom duties on some equipment. It plans to set up the Electrical Equipment Skill Development Council (EESDC) which would focus on identifying critical manufacturing skills required for the electrical machinery industry.

The electrical machinery segment has scope for utilisation in nuclear power generation in the country. Also, power transmission in India, which is currently carried out largely in the 220 kilovolts (kV) and 400 kV range, is expected to move up to a higher range of 765 kV and high-voltage direct current.

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