Known to largely be a background force, the Indian wire and cable industry forms a crucial infrastructural driver of the Indian economy helping us light up our lives on an everyday basis.
Among the many things we take for granted in the course of our daily lives, power is definitely one of them, without realising the enormous role it plays in the smooth running of our lives. And driving the power industry is the largely invisible wires and cable industry that plays a key role in this regulated power supply. So much so that it forms a crucial infrastructural backbone of the Indian economy. The cable industry can be broadly divided into three categories: power cables, control cables and telecommunication cables.
AN OVERVIEW
The wires and cable industry in India has come a long way, from being a small industry to a very large one, over the past decade. The increasing demand for power, light and communication has kept the demand high for wires and cables. The segment now comprises nearly 40 per cent of the electrical industry in India, and is estimated to grow at a CAGR of 15 per cent, boosted by momentum in the power and infrastructure segments. The present estimated per capita consumption is only about 0.5 kg. With the Government now focusing on Make in India, the industry can grow at similar rate for the next five years. The Government’s fund allocations in the two important schemes, viz. Deendayal Upadhyay Gram Jyoti Yojna (DDUGJY) and Integrated Power Development Scheme (IPDS) has been enhanced from ₹4,500 crore to ₹8,500 crore which would give a boost in demand to the electrical equipment manufacturing industry.
Amid all these positive growth pointers, it is expected that the industry, which has been growing at the rate of around 15 per cent currently, will start growing at the CAGR of over 20 per cent over the next 5 years. As per a recent survey by Net scribes, the wires and cable industry in India is poised to cross the ₹57,000 crore benchmark by 2018.
Factors facilitating growth
This story is from the May 26 2017 edition of Outlook Business.
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This story is from the May 26 2017 edition of Outlook Business.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
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