New Delhi, Jan 31 (KNN) India's electrical equipment industry is poised for substantial growth, with forecasts indicating a doubling in size by 2030, reaching a market valuation of USD 130 billion.

Hamza Arsiwala, President of the Indian Electrical & Electronics Manufacturers' Association (IEEMA), anticipates a medium-term horizon for this expansion, with industry growth expected to double and exports projected to increase 2.5 times within the next seven years.

Arsiwala highlighted the sector's resilient recovery post-COVID-19, achieving an average compound annual growth rate (CAGR) of 8 per cent over the past five years, reported ET.

The fiscal year 2022-23 witnessed the industry's size surpassing USD 60 billion, with exports contributing significantly at USD 11 billion.

Notably, exports experienced a robust 17 per cent CAGR in rupee terms over the last five years, driven by strategic free trade agreements with countries like Australia and the UAE.

The electrical and allied electronics industry, a key player in the transmission and distribution (T&D) space for renewable energy projects, is vital to the renewable energy sector's success.

The majority of supplies are directed towards renewable energy projects, complementing its dominant role in overall energy generation.

Additionally, the industry's growth is fuelled by sectors such as railways, real estate, smart infrastructure projects, core industries, data centres, defence, and charging infrastructure.

The industry is actively addressing environmental concerns, with ongoing assessments and reviews of carbon emissions policies.

Employment generation is a significant impact area, with over 2.2 million jobs attributed to the electrical and allied electronics industry, constituting 7.2 per cent of India's total manufacturing segment in GDP and approximately 45 per cent in the capital goods sector.

Looking ahead, the industry is positioned for global expansion, aiming to more than double its global export share by 2047.

This growth signifies a significant stride in the international market and underlines the industry's pivotal role in India's economic landscape.

(KNN Bureau)