Rising domestic demand gives some respite to electrical equipment industry

Production registers 6 per cent growth in H1, on account of 9.8 per cent growth in Q2, after a weak 2 per cent growth in Q1Q2 growth due to rise in domestic demand, after negative growth in domestic orders in Q1 and preceding quartersDelays in project execution and non-adherence of payments still a concern for manufacturers
India’s ` 1.30 lakh crore electrical equipment industry has witnessed a 6 per cent growth in the first 6 months (H1) of 2013-14, due to a rise in domestic demand, according to production data released by the Indian Electrical and Electronics Manufacturers’ Association (IEEMA).
After a weak growth in the first quarter (Q1) of the current fiscal, mainly on account of growth in exports, the 2nd quarter (Q2) has witnessed a growth of 9.8 per cent in the production of the electrical equipment industry due to a welcome rise in domestic demand. This has led to a moderate growth in H1 of FY’13-14 as compared to H1 of FY’12-13.
Some progress in power transmission and sub-station projects, power generating stations, especially renewable energy like wind, R-APDRP projects and orders from select core sectors like construction and real estate have helped in the moderate growth, although the electrical equipment industry continues to face very severe credit availability, enormous delays in project execution and non-adherence of payment terms by customers, mainly power utilities, resulting in unmanageable cash flow problems across the industry.

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