Power Equipment Manufacturing could Fuel the Growth of Indian Machine Tool Industry

India is making rapid strides in power generation capacity. The country with an installed power generation capacity of over 330 gigawatt ranks Fifth largest in the world ranking behind European Union, China, United States and Japan. With the Government of India targeting a capacity addition of around 100 gigawatt as per an IBEF research report, power sector probably could drive the demand for equipments across hydro, thermal and nuclear sectors. Power generation and distribution equipment demand could also rise. Indian Machine Tool Industry needs to stay tuned to some upticks for production of machines such as turbines, gas turbines, hydraulic turbines, pumps, generators, piping systems, couplers, etc.

The key emphasis for the machine tool sector is to enable manufacturing excellence through superior technology, productivity and cost competitiveness. Power equipment industry plays an important role in improving India’s power structure. However to achieve this, health of India’s power sector should be extremely fit and kicking. There are challenges in terms of low capacity utilizations, majorly in transmission and distribution and an uphill battle with machinery imports. Government of India should support MSMEs in technology upgradation and testing, etc. Measures such as these will enable the power equipment manufacturing industry to not just meet domestic demands but establish a global presence as well.

Although coal has been the mainstay in India’s energy mix following environmental concerns, Government is encouraging the power industry to look at alternatives such as nuclear reactors and renewable energy sources such as wind, solar, etc. This will possibly lead to renewed R&D and innovations in these sectors and augment the growth of new technologies which will need sophisticated heavy machines.

These developments could perhaps be the trigger that would create demand for new machines and machine tool sector can look forward to further penetrate the power sector by meeting the demands of the energy sector through active development of indigenous machinery and equipments.

* Source : IBEF, Indian Power Sector Analyses, https://www.ibef.org/industry/indian-power-industry-analysis-presentation