To improve India’s global competitiveness India can increase its exports by finding more prospective buyers of target products across the world. They are most likely to find these buyers in countries where the demand of target products is high.
If we invest in R&D and our international peer group accepts trials, it would provide opportunity for large exports in the field of electrical equipment.
India has a large skill-challenged population. A focus on education and skill development will create the work force that is needed to develop economy.
Implementation of the goods and services tax (GST) also helps in improving India’s rankings in the global competitiveness as well as in the ease of doing business index.
Skilled labour: The challenge before industry and government is to improve the education and vocational training system and train 500 million workers by 2022 across all sectors of the economy.
There has to be partnership between technical institutes like IIT, NIIT and others to provide online trainings on skill development by webinar as well as onsite training.
The government should form policy and make mandatory both for institute and industry for R&D and skill development like being done in developed countries.
The road ahead: Growth in the power industry is expected to drive growth in the electrical equipment industry. A whole range of power and distribution transformers, including special type of transformers required for furnaces, electric tracts and rectifiers, are manufactured in India. Similarly, other switchgear products are also being manufactured in India for the global markets.
The Union power ministry has targeted to add 93,000 mw of power generation capacity by 2022. This creates huge potential for the transformer and switchgear market. Revenues are expected to grow at CAGR of 14 per cent till 2018. The transformers and switchgear market in India that was valued at $1.78 billion in FY16 and $5.9 billion in FY17, is expected to reach $11.1 billion by FY22.
[Anil Saboo, apart from being CMD of Elektrolites (Power) Pvt Ltd, is also Vice Chairman of ELECRAMA 2018-2020; Chairman of CII, Rajasthan; Executive Council Member of IEEMA; and Founder Trustee of Jaipur-based “Jagriti”, an NGO that helps providing education to underprivileged children.]
(In an exclusive exchange with T&D India)