India’s exports of electrical equipment were INR 2,227 Crore (around USD 4.5 billion) in 2013-14, but were less than 1% of the global trade in electrical equipment. With the electricity sector being a sunrise sector across the entire developing world, there exists significant potential for India to tap the export markets. India should target a 5% share of global trade in electrical equipment in the next ten years so that our exports reach a level of USD 25 billion.
The major export markets for Indian electrical equipment are USA, Germany, UAE, Saudi Arabia, France, UK, Nigeria, China, Kenya and Brazil, which testifies to the quality of Indian manufactured electrical equipment.
Over the years, the Indian electrical equipment industry has developed a diversified, mature and strong manufacturing base, with robust supply chain, and a rugged performance design of products. Globally Brand India presents a huge opportunity thus it is imperative to promote the growth of exports of electrical equipment that have a strong manufacturing domestic base and manufactures need to move up the value chain.
A market diversification strategy based on the changing dynamics of growth in the world economy is necessary to sustain growth of exports. The industry should rethink its market strategy and focus on newer markets.
- Essential to retain presence and market share in existing geographies
- Moving up the value chain in providing quality products
- Exploring and penetrating new and emerging markets
Focus on: Africa, CIS, Latin America, ASEAN region. The industry needs the support of the Government in introducing policy changes which will specifically support exports of electrical equipment from India. These include policies related to export financing, taxation, marketing, etc. which will immensely help the Indian exporters compete better in the global arena. The Focus Product Scheme (FPS), under the Foreign Trade Policy, should be extended to cover all electrical equipment.
Indian manufacturers also need to focus on product innovation, technology, R&D, packaging, cost competitiveness. Together, we need to build a Brand India in electrical equipment domain.