Domestic electrical and electronics manufacturers are betting on exports for their growth prospects as the opportunities in the domestic sector have shrunk, an official said.
“Domestic market has shrunk. Whatever growth we are seeing in the industry is on account of global penetration. If the industry gets its international efforts right, we expect that in 7-8 years it could become a US$ 100 billion industry,” Indian Electrical and Electronics Manufacturers’ Association (IEEMA) Vice President Harish Agarwal said.
He also said that rising demand in ASEAN markets along with African and Latin American countries is set to keep the export demand buoyant.
At present the industry exports goods worth around $10 billion, set to increase to around $50 billion over the next 7-8 years, he said.
The association comprising of around 800 members representing electrical, industrial electronics and allied equipment manufacturers said that a drop in capital expenditure by eight government-owned companies to the tune of around Rs 8,300 crore, was set to hit the industry.
Compared with last year’s budget capital expenditure of Rs 62,600 crore, in 2018-19 the expenditure is pegged at Rs 54,270 crore.
While NTPC will see a drop in capital expenditure from Rs 28,000 crore to Rs 22,300 crore, Powergrid’s capital expenditure is projected to be stagnant at Rs 25,000 crore.
To facilitate the overseas interest and interaction opportunities, IEEMA will host a five-day exhibition and seminar called ELECRAMA 2018 at Noida in Uttar Pradesh from March 10-14.
