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India's electrical equipment industry is poised for significant growth

ICICIdirect Research 18 Jun 2026 DISCLAIMER

News: India's electrical equipment industry is poised for significant growth, driven by rising power demand, renewable energy expansion, transmission & distribution investments, industrial electrification, railways, and data center development. According to a McKinsey report, domestic electrical equipment consumption is expected to increase from US$59 billion in FY25 to US$170–205 billion by 2035. To meet this demand, India's domestic production capacity will need to expand from around US$50 billion in FY25 to US$195–235 billion by 2035.The report highlights a potential US$130 billion manufacturing gap if domestic manufacturing does not scale up adequately. In such a scenario, India's dependence on imports could rise sharply to over 70% of electrical equipment demand by 2035, compared with 33% in 2025. However, aggressive localization and domestic manufacturing investments could reduce import dependence to below 14% by 2035.

View: The structural growth outlook remains highly positive for electrical equipment manufacturers, with transformers, switchgear, transmission equipment, data center power infrastructure, and grid modernization expected to be the biggest growth segments over the next decade. Companies such as Siemens, CG Power, Hitachi Energy India, ABB India, and GE Vernova are likely to be major beneficiaries of this long-term capex cycle.

Impact: Positive

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