India’s Rise in the Global Transformer Market

 

The manufacturing sector in India has been witnessing exponential growth in recent years. Various industries such as electronics, automobiles, aerospace, and medical devices play a significant role in industrial diversification and the country’s economic growth.

Back in the days only a few countries like China, Germany, and the United States dominated the transformer manufacturing industry. India would rely on these nations for transformers and had a small export footprint in the global market.

However, this over reliance on foreign players is significantly reduced and India is exporting transformers more than ever today.

All thanks to government initiatives like "Make in India" and the rising domestic demand for power infrastructure, India has been able to increase its global market share and export value.

Trust in India's Transformer Sector Grows

Transformers enable safe and seamless transfer and distribution of power at appropriate voltage levels to residences and industries.

In 2023, India set a new benchmark by exporting transformers worth $3.59 billion. The United States was the primary buyer of Indian transformers, while China, the UK, and the Netherlands followed closely behind as key importers.

The best part of this supply chain is the rising demand from markets like the Netherlands; 2023 saw a 41% jump in imports by them.

Today, India stands among the world’s top ten transformer exporters.

How India Achieved this Shift?

India’s diversification of its product range has been key to its increased exports in the global transformer market. With its large labour force, not only transformers, now India also exports special application transformer parts and components.

For example, India made $449 million in 2023 by selling transformer parts and static converters to other countries, of which the main consumers were the US, the Middle East and Europe markets.

Also, despite strong competition from China and Germany, India’s ability to deliver reliable and cost-effective products without compromising on quality has helped it expand its footprint in the new and emerging transformer markets like Mexico and Bangladesh.

Currently valued at over ₹12,000 crore, the transformer business in India is stable despite obstacles in the development of power infrastructure.

With increasing demand for clean energy rises worldwide and India’s capabilities to fulfill these demands, the future of the Indian transformer industry appears bright.

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