Export Market Potential for Indian Pump Manufacturers
The Indian pump manufacturers have been advised to set their sights on export markets for the sector’s growth, according to K.V. Karthik, the recently elected President of the Indian Pump Manufacturers’ Association (IPMA).
Karthik highlighted the potential of African and West Asian countries as untapped territories for Indian agriculture and domestic pump exports. Notably, he pointed out that the current demand in Africa is significantly greater than the 10% met by Indian suppliers. Fierce competitors in these markets include European brands, China, and Turkey.
Challenges Faced by the Indian Pump Industry
With the organized Indian pump industry commanding a market size of approximately ₹17,000 crores, agriculture, and domestic pumps make up a substantial ₹11,000 crores of this sum. However, this sector has grappled with hurdles from escalating raw material costs, which persisted until the close of 2022. Furthermore, the government’s decision to raise the Goods and Services Tax (GST) from 12% to 18% further compounded the challenges faced by the organized pump segment. Consequently, a notable price disparity of around 30% between organized and unorganized sector pumps has emerged, catalyzing the expansion of the unorganized sector within the domestic market.
While domestic markets have demonstrated relatively more robust performance due to suboptimal monsoons in the southern states, northern markets continue to face subdued demand. Addressing these intricacies, the IPMA has charted a course toward developing high-value pump solutions. A groundbreaking project centered on a high-value slurry pump is set to be executed, with a total investment of ₹12.84 crores and a government grant amounting to ₹10.27 crores. Spearheaded by the Scientific and Industrial Testing and Research Centre (Si’Tarc), this endeavor addresses industry needs through innovation.