The electrical equipment industry in India has a long and chequered history. Today, it covers over 1,500 units of varying sizes, amounting for an annual turnover of about Rs.1,10,000 crores. It amounts for about Rs. 20,000 crores of annual exports and about Rs. 32,000 crores of annual imports; it has a negative trade balance which has been increasing in recent times.
Because of its heterogeneous character, the domestic electrical equipment industry, despite its critical role in the economy, has not received focussed attention of the policy makers. Similarly, the numerous stakeholders, including the manufacturers, have not evolved a strategic action plan for the industry’s growth and development and have focussed only on piecemeal short-term tactical measures.
For the rapid development of the industry, a holistic view and action plan is required. All stakeholders need to proactively collaborate and take concerted and coordinated action so that the industry can further accelerate its growth process and contribute significantly to reducing the power demand-supply gap in the country.
With this objective in view, under the aegis of the Department of Heavy Industry (DHI), and with support from IEEMA, a Mission Plan 2012-2022 for the electrical equipment industry is being drawn up in consultation with all the key stakeholders. The Mission Plan would lay down a clear roadmap for enhancing the competitiveness of the domestic electrical equipment sector.
IEEMA has engaged Ernst & Young to be the knowledge partner in this exercise and a Base Document (Indian Electrical Equipment Industry Mission Plan 2012-2022: Base Document), was released by the Union Minister of Heavy Industries & Public Enterprises at the IEEMA Annual Convention held on 26th September 2011 at Mumbai.
The Base Document identified 14 Strategic Initiatives and, subsequently, 5 Working Groups, with representation of relevant Government Ministries/Departments and industry nominees, have been constituted to formulate the recommended interventions in all these areas.
The 5 Working Groups are on (1) Upgrade Technology to Meet Future Requirement; (2) Enhancement of Industry Competitiveness; (3) Conversion of Latent Demand into Actual Demand; (4) Skill Development; and (5) Exports of electrical Equipment.
Base papers are being prepared for the Working Groups to deliberate upon and finalise the recommended interventions in their respective areas. Once the recommended interventions are finalised, these will be dovetailed into the final Mission Plan and presented to the Development Council for Heavy Electrical & Allied Industries. The Mission Plan is slated to be finalised in about 3 months’ time.