Move to revive electric equipment industry
Updated: May 21, 2013 02:51:01pm
New Delhi, May 21 (KNN) The government is planning to revive the electric equipment industry which has been hit by a poor order book and cheap imports by increasing its competitiveness and technology upgradation.
The 10 year plan called Electrical Equipment Mission Plan till 2022 will focus on competitiveness, technology upgradation, skill development, exports and conversion of latent demand.
The industry had witnessed a sharp fall on account of sluggish domestic demand.
“After growing 13.7 per cent in 2010-11, growth slipped to 6.9 per cent in 2011-12. After ten years the industry has witnessed a fall in 2012-13. The sluggish domestic demand on account of the slowdown in the country’s power sector and a surge in imports in recent years has been primarily responsible for the current situation,” said media reports quoting Indian Electrical and Electronics Manufacturer’s Association, President, JG Kulkarni.
Significantly, the industry has witnessed a 7.3 per cent drop in the first eleven months of 2012-13.
Five committees have been formed to look into the matter and they have chalked out a plan for strategic and policy intervention.
The committee will ask the government departments to rationalise procurement process and give priority to domestic players. The total exports of the electric equipment makers account for the 1.5 per cent of overall shipment while the imports share is about 3.2 per cent of the total imports.
The trade deficit in electric equipment is widening as its exports have increased at a compound annual growth rate of 9.7 per cent during the last five years whereas imports have increased at 27.2 per cent. (KNN)
The 10 year plan called Electrical Equipment Mission Plan till 2022 will focus on competitiveness, technology upgradation, skill development, exports and conversion of latent demand.
The industry had witnessed a sharp fall on account of sluggish domestic demand.
“After growing 13.7 per cent in 2010-11, growth slipped to 6.9 per cent in 2011-12. After ten years the industry has witnessed a fall in 2012-13. The sluggish domestic demand on account of the slowdown in the country’s power sector and a surge in imports in recent years has been primarily responsible for the current situation,” said media reports quoting Indian Electrical and Electronics Manufacturer’s Association, President, JG Kulkarni.
Significantly, the industry has witnessed a 7.3 per cent drop in the first eleven months of 2012-13.
Five committees have been formed to look into the matter and they have chalked out a plan for strategic and policy intervention.
The committee will ask the government departments to rationalise procurement process and give priority to domestic players. The total exports of the electric equipment makers account for the 1.5 per cent of overall shipment while the imports share is about 3.2 per cent of the total imports.
The trade deficit in electric equipment is widening as its exports have increased at a compound annual growth rate of 9.7 per cent during the last five years whereas imports have increased at 27.2 per cent. (KNN)
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