IndiaCore logo IndiaCore
India Core AD


Featured Reports & Publications
 Upcoming Titles

Overview of New & Renewable Energy Sectors in India

Energy Efficiency Scenario in India

India Core Reports

IndiaCore Site




The major expectations of the industry from the upcoming Union Budget 2013-14- J G Kulkarni, President, Indian Electrical and Electronics Manufacturers Association (IEEMA)

The downturn in the demand for domestic electrical products and increase in imports have spelled double trouble for the Indian market for electrical products, resulting in negative growth of -6.14% over the last nine months. This kind of negative turn has become visible for the first time in the last decade. In the backdrop of such negative industry sentiments, J G Kulkarni, President, Indian Electrical and Electronics Manufacturers Association (IEEMA), in an interaction, highlighted the major expectations of the industry from the upcoming Union Budget 2013-14.

Question: How is the Indian electrical equipment industry evolving?

Answer: The Indian electrical equipment industry is expected to touch approximately USD100 billion (Rs. 5,50,000 crore) by 2022. The total fund requirement during the 12th Plan, considering each aspect of the power sector, is expected to be about Rs. 14 lakh crore, including Rs. 1,35,100 crore required for renewable energy.

The industry has all the potential to grow to the next level, but it is struggling with multiple issues. The government can help the industry by coming up with a policy document which can protect its interests and by creating a growth-oriented environment.

Question: What are the challenges that the industry is facing presently?

Answer: The current market scenario does not present a rosy picture for the industry. The industry witnessed a negative growth of 4.1% in Q2 of 2012-13, the second consecutive quarter of negative growth, which, according to me, is an ’alarming statistic’.

The entire power sector value chain hinges on the financial viability of the power distribution sector, and the poor financial health of state distribution utilities continues to adversely affect both existing and planned projects, leaving developers with no option but to run projects at sub-optimal capacities or go slow on commissioning schedules.

The domestic electrical equipment manufacturing industry suffers a substantial cost disadvantage of 14%, as compared to imports, while supplying to power projects, due to many local taxes such as VAT, entry tax/octroi, higher financing cost, project imports at nil or low customs duty, lack of quality infrastructure, and dependence on foreign sources for critical raw material and components.

Question: What are the key recommendations that you would like to make for the upcoming budget?

Answer: Even though a number of policy initiatives have been put in place, the task of transforming the power sector is yet to be achieved. IEEMA has sought extension of service tax exemption to all power projects, including power generation, transmission and distribution projects, in line with other infrastructure projects like roads, airports, ports, railways, transport terminals, bridges, tunnels and dams.

The government should follow the recommendations of the Arun Maira Committee, and provide a level playing field to domestic manufacturers by making customs duty 10%, CVD nil and SAD 4% on all categories of power projects. Simultaneously, deemed export benefits in the form of excise duty exemption/refund should be provided to the domestic suppliers.

All imports are currently exempted from CST/VAT, while all domestic supplies attract CST of 2% and VAT ranging from 5% to 14.5%. Although SAD has been removed on CRGO, its imports should be allowed at nil duty, till indigenous production is made available. There is a delay in the publishing of applicable indices, for reasons beyond the control of the suppliers.

Question: How can the industry cope with its present tough economic conditions?

Answer: Dynamic production techniques must be imbibed to enhance cost efficiency, even while supplying products conforming to highest standards of quality. Critical attention is required in enhancing cost competitiveness, especially to withstand competition from overseas markets.

The policy makers should come up with a document that encourages electrical manufacturing companies to venture into global markets. The motto should be: ‘Think, and go global’. This must be considered as a survival strategy rather than an expansion strategy, considering the poor economic scenario of the electrical industry.


The information and opinions expressed here are believed to be accurate, based on the best judgement available. The statements or opinions or views are those of the individual and are not necessarily agreed or authorised or endorsed by IndiaCore. IndiaCore acknowledges occasional differences in opinion and welcomes the exchange of different viewpoints., India Core Publishing, International Publications & Information Services (IPIS) and/ or the authors cannot accept legal liability for any error nor do we assume any responsibility or any liability for any reliance thereon or for any loss to any person/ organisation caused by inaccuracy in the information available. Any discrepancy found may be brought to our notice at

India Core is a commercial business d
isseminating comprehensive and well-researched information on the infrastructure & core sectors scenario in India through our online & offline platforms since early 2000.

We provide information products & services on payment basis and are unable to provide specific information or advice free to users.

Further detailed & updated information on this Sector is accessible only to India Core members/ subscribers/ paying clients.

To gain access, please login if you are a member/ subscriber:

Member's Email

For Fee Based detailed analysis & value added information on the Indian Core Sectors, please contact us at

Upcoming IndiaCore Organised/ Partnered Events

Global Cardiology Summit 2018, October 22- 23, 2018 || Osaka, Japan


Gas / LNG Contracts: Structures, Pricing & Negotiation, October 22- 26, 2018 || Johannesburg


Envirotech Asia 2018, November 1- 3 2018 || Mumbai, India


21st BUILDEXPO TANZANIA 2018, November 01- 03, 2018 || Tanzania


Gas / LNG Contracts: Structures, Pricing & Negotiation, November 04- 08, 2018 || Dubai


28th World Congress on Cardiology and Heart Diseases, November 5- 6, 2018 || Amsterdam, Netherlands


IV Energy and Materials Research Conference – EMR2018, November 8- 9, 2018 || Malaga, Spain


22nd World Congress on Pediatrics, Neonatology & Primary Care, November 12- 13, 2018 || Dubai, UAE


World Congress on Clinical Pediatrics, November 12- 13, 2018 || Lisbon, PORTUGA


Power Week Asia Conference 2018, November 12- 16, 2018 || Singapore


29th World Cardiology Conference, November 19- 20, 2018 || Edinburgh, Scotland


12th International Conference and Expo on Proteomics and Molecular Medicine , November 26- 28, 2018 || Dublin, Ireland


Asia Cold Chain Show 2018, November 28– 30, 2018 || Bangkok. THAILAND


Gas / LNG Contracts: Structures, Pricing & Negotiation, December 03- 07, 2018 || Kuala Lumpur


15th World Hematology & Immunology Congress 2018, December 05- 06, 2018 || Lisbon, Portugal


26th International Conference & Exhibition on Cardiology and Cardiovascular Medicine, December 6- 7, 2018 || Sydney, Australia


26th Euro Congress and Expo on Dental & Oral Health, December 10- 11, 2018 || Rome, Italy


Aegis Graham Bell Award 2019, January 18, 2019|| Goa, India


30th European Heart Diseases and Heart Failure Congress 2019, February 18- 19, 2019|| Amsterdam, Netherlands


Cancer Science & Therapy 2019, March 7- 8, 2019 || Barcelona, SPAIN


Human Metabolic Health- Diabetes, Obesity & Metabolism 2019, March 21- 22, 2019 || Dubai, UAE


5th World Heart Congress 2019, April 15- 16 2019 || Amsterdam, Netherlands


Pediatric Cardiology and Health 2019, April 22- 23 2019 || Madrid, Spain


The 9th Asia-Pacific Floor Fair 2019, May 9- 11, 2019 || Guangzhou


13th China (Guangzhou) International Billiards Exhibition 2019, May 9- 12, 2019 || Guangzhou


Pharma CIO Conclave & Awards 2017, August 9, 2017 || Mumbai
Conference Proceedings

Join our Mailing List to receive Information Updates on Events, Happenings, Book Release, Developments in the Core Sector

IndiaCore listing

IndiaCore Banner

Copyright © IndiaCore. All Rights Reserved. Terms of Use & Privacy Policy
Site Designed & Maintained by India Core - The Online Resource for Information on the Indian Infrastructure & Core Sectors