Indian economy is becoming more efficient through five broad themes- fast and steady rate of growth, market reforms, expansion and innovation in manufacturing, revival in rural growth and creation of modern infrastructure.
The wire & tube industry is an indispensable sector that keeps all the economic parameters of growth chugging along at a higher pace. The sector is an important branch of engineering and neither the industrial sector nor our daily existence is conceivable without wire and tube.
Rural electrification, housing for all by 2022 mission of the government, railway modernization and the automobile sector, which is expected to steal a march over the other sectors as household income rises, specially in the rural areas rises, are expected to prop up growth in the global insulated wire and cable market.
The wire & tube industry is also rallying around infrastructure, construction, building, automobile, power and water distribution, electricity, oil and gas distribution which will see encouraging growth given the focus of the Budget in propping up the sluggish tempo by allocating generous funds.
Globally, conventional energy sources namely oil, gas, and coal are slowly losing its importantce with their limited generation largely due to the need for minimising carbon emission. As a result, many countries are encouraging the development of renewable energies. Wind energy is fast becoming the most attractive renewable energy source. However, cables used in the wind energy industry are facing challenges caused by the harsh environmental condtions. A well developed technology needs to be devloped to harness the wind energy more efficiently.
The government plans to achieve 175GW of renewable energy capacity by 2022 as part of its commitments to the Paris climate change agreement.A time-bound progress on strengthening of power evacuation network, both at the intra-state and the inter-state level therefore remains crucial for the wind sector, so as to increase its share in the all India energy mix as well as to enable transfer of wind power from high wind potential states to states with limited wind generation potential.
The feverish mining activity seen as a result of increased infrastructure requirements post the budget recommendations, underlines the importance of wire and tubes with rapid growth of end user industries. In mining operations, the transportation of minerals from loading to disposal points is a critical activity. To avoid pollution and lower turnout, companies are using conveyor belts over vehicle transportation . This necessity is going to enhance the demand for steel wires and cables in conveyor systems for bulk ore material transportation.
When the global economies are under duress with uncertainties, in contrast, there is a wave of change sweeping across India and, as the New Year has dawned, it is hoped to be a resurgent one with the government focus on investment in infrastructure and manufacturing where R&D and innovative technologies will play a catalyst role.
Buoyed by a budget that is encouraging and has all the ingredients to unleash growth , India is all wired up to post highest levels of growth and set a new benchmark in the world economic order.