Slowdown hits electrical equipment industry

New Delhi, May 11 (IANS) The growth of India's electrical equipment industry fell to 6.6 percent in 2011-12 as compared to 13.7 percent in the previous year, industry data showed Friday.

"Sluggish growth in power sector and escalating imports of electrical equipment is significantly impacting the commercial viability of the domestic electrical equipment industry and will have severe long-term consequences," Indian Electrical and Electronics Manufacturers' Association (IEEMA) said in a report.

All three segments of the power sector - generation, transmission and distribution - are facing several challenges which need to be addressed expeditiously, it said.

Growth in capacitor, switchgear and transmission line segments turned negative in 2011-12, implying distinct slowdown in industrial capex activities and slowdown in off-take by users due to credit squeeze and high interest costs.

The cable industry is the only sector that has shown a double-digit growth of 25.7 percent in the year under review.