Tradeindia's official blog for business tips and SMEs Insights

Electrical Machinery Industry: New Door of business opportunities

By on February 5, 2015 in Business Tips, SMEs Insights with 0 Comments

The huge demand of electrical machinery in both national and international markets and the availability of required infrastructure and expected government support, makes electrical machinery sector a sensible industry to start a new business. With a higher rate of annual growth, the electrical machinery sector is expected to serve good business opportunities to both bigger and smaller firms and will also invite some new players. The industry is estimated to offer an output of around USD 100 Billion by 2020. During the period of the year 2005-2006 to 2012-2013, the import of electrical equipments have increased at the CAGR of 24.67 % per year. So, the industry is booming and can provide benefits to the involved manufacturers and companies.


This sector can be broadly divided into two segments: Heavy electrical machinery sector and light weight machinery sector. SMEs are majorly associated with the light weight machinery because of the high manufacturing cost of heavy electrical machinery.

Some of the top reasons why Electrical Machinery sector is best to start or grow a business:

  • Higher demand in local and international markets for electrical equipments.
  • Expansion of market at a rate of 10% between 2007-2012.
  • Initiative for increasing power generation, which will accelerate the demand for electrical products
  • 100% FDI allowed
  • Investment allowance provided by the government at the rate of 15% to the manufacturing companies who are investing more then INR 1 billion in machinery and plants installed and acquired between 1/04/2014 to 31/03/2015.
  • Growing export of electrical equipments at the rate of 14.8% per year.
  • 26 Billion sized industry in the year 2013-14.
  • Increasing competitiveness of Indian manufacturers with international producers in terms of product design, quality, manufacturing and testing facilities.
  • Development of sectors like construction, automobiles, mining, etc.,further boost the demand of engineering and electric products.
  • 350 GW (gigawatts) is the expected installed power capacity in India by the year 2022.


Make-in-India initiative has further accelerated the growth of the Electrical machinery industry by boosting the manufacturing sector. It is a high time to start a business or to invest in this sector, in order to earn good ROI and profits.

Online mediums can also help you in making more profit from your electrical machinery related business by offering more and more customers and newer business opportunities. Many SMEs functioning in the domain, are generating good amount of revenue by using various online medium, such as online stores, B2B portal, online business listings, social media platforms, etc,.

Make the most out of your business efforts and entrepreneurship by getting into this growing and profitable sector of the economy.

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