§1How big it is

§2Ways to get started

  • LT control panels and distribution boards for buildings and factories
  • Motor and transformer rewinding / repair
  • LED light assembly (needs BIS registration)
  • Wire harness and cable assembly job-work
  • Solar and inverter battery installation and service

See the Business Encyclopedia

§3Hubs and clusters

    §4Licences and registration

    1. BIS licence (ISI mark) or Compulsory Registration Scheme registration for products under QCO
    2. BEE star-label registration for covered appliances
    3. Vendor registration / type-test approval with state DISCOMs and PSUs for tender supply
    4. Electrical contractor licence from the state (for installation work)
    5. Udyam Registration (MSME) - free, online, PAN + Aadhaar based
    6. GST registration (mandatory above turnover threshold or for inter-state supply)
    7. Shops & Establishments registration or Factory Licence (Factories Act) depending on set-up
    8. State Pollution Control Board Consent to Establish / Operate per CPCB 2025 Red/Orange/Green/White/Blue category (White exempt)
    9. IEC - Importer Exporter Code from DGFT (only if importing or exporting)

    §5Regulators

    • Ministry of Heavy Industries - administrative ministry for heavy electrical equipment
    • BIS - Quality Control Orders cover many electrical products (cables, switches, appliances, LED products); BIS licence or registration needed
    • Bureau of Energy Efficiency (BEE) - mandatory star labelling for listed appliances
    • Central Electricity Authority (CEA) - technical standards for grid equipment; utilities' vendor approval
    • Central Power Research Institute (CPRI) - type testing

    §6Government help

    • PLI Scheme for White Goods (ACs and LED lights), DPIIT
    • PLI Scheme for Advanced Chemistry Cell (ACC) Battery Storage, Ministry of Heavy Industries
    • Public Procurement (Preference to Make in India) Order 2017 - preference in government tenders
    • Cross-sector schemes: Udyam-linked MSME benefits, PMEGP, CGTMSE credit guarantee, Stand-Up India, Startup India (DPIIT recognition), RoDTEP / duty drawback and Export Promotion Mission for exporters

    All schemes

    §7For exports

    • EEPC India (engineering exports incl. electrical machinery)
    • DGFT

    §8Pros and cons

    Merits

    • Electrical equipment output grew 15.9% in July 2025, among the fastest in IIP [PIB Sep 2025]
    • Heavy electrical exports grew every year from 2017-18 to 2020-21 [PIB 2022]
    • Repair, rewinding and panel-building can start with small capital

    Demerits

    • Most consumer electrical products need BIS certification before sale - testing cost and time
    • Utility and PSU orders need type tests and vendor approval, which take long
    • Copper and aluminium price swings hit margins
    • Cheap imports compete in lighting and appliances

    Sources

    1. PIB backgrounder: India's Manufacturing Momentum - Performance and Policy (19 Sep 2025)
    2. PIB (Ministry of Heavy Industries): Increase in the Exports of Products pertaining to Heavy Electrical Industries (29 Mar 2022)