Electrical, Transmission & Distribution
India's GDP has been growing by 6-9% over the last 15 years, with the rise in industrial and commercial activity in the country. Disposable income has risen substantially in this period. With the growth in economy, energy demand has also seen a ~7% y-o-y growth. In the last 5 years, power generation capacity has grown by ~50%, whereas transmission capacity has increased by ~30%.The future expansion in power & generation capacity in India is planned around 88GW. In order to meet this capacity, investment in the transmission sector needs to be increased.
Considering that the government plans to increase power generation capacity from 200 GW to about 400 GW by 2020 with commensurate T&D capacity enhancement, Indian Electrical equipment manufacturers not only have to meet demand of such huge capacity addition, but also that of metros, airports, railways, other infrastructure projects and increase in domestic consumer demand too. Per capita electricity consumption in India is around 900 (kWh), less than one-fourth the global average.
The growth of the Indian power sector will entail exponential demand for electrical equipment. The industry is projected to provide direct employment to 1.5 million people and indirect employment to 2 million by 2022. Presently, the domestic electrical equipment industry size exceeds US$ 25 billion with the share of generation equipment (boilers, turbines, generators - BTG) being about one-fourth and that of T&D being three-fourth of the total.
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