Mumbai: India’s electrical equipment industry could emerge as a major global manufacturing and export hub by 2035, with domestic production potentially reaching between $195 billion and $235 billion, according to a new report released by McKinsey & Company.
The report, titled Wired for Growth: India’s Electrical Equipment Opportunity, projects that exports from the sector could exceed $60 billion, while domestic consumption may grow to $170–205 billion over the next decade.
India’s electrical equipment industry, which spans power generation, transmission and distribution, storage, grid management, and end-use applications, is expected to grow at an annual rate of 11–13%. The report attributes this growth to improving cost competitiveness, stronger technological capabilities, and rising export potential.
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According to the report, India’s domestic electrical equipment market reached $59 billion in FY2025, growing at 11% CAGR over the past five years. However, import dependence also increased significantly — from 22% in 2020 to 33% in 2025.
Amit V Gupta, Senior Partner at McKinsey & Company and co-author of the report, said India has already demonstrated global leadership in sectors such as IT services and auto components, and a similar strategy could help transform the country into a global player in electrical equipment technologies.
The report adds that without significant intervention, India’s import dependence in the sector could exceed 70% by 2035, resulting in a production shortfall of more than $130 billion. To avoid this, the country would need to scale domestic manufacturing capacity nearly fivefold from current levels.
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And this can be achieved by localization opportunities in key segments such as power electronics, batteries, solar photovoltaic (PV) cells and modules, and electrical subcomponents. Domestic demand for power electronics alone could surpass $17 billion by 2035, the report added.
The study also emphasized India’s potential to capture over 7.5% of global exports in sectors like solar PV and transformers by 2035, supported by stronger export infrastructure, improved competitiveness, and innovative service-based business models.
Bhavesh Mittal, Partner at McKinsey & Company, said that India must rapidly expand domestic manufacturing in areas such as power electronics, AC compressors, and the solar value chain to avoid future supply vulnerabilities, adding that “business-as-usual will not be enough".
The report added that India’s early success in subsea cables and renewable energy equipment demonstrates the country’s potential to become globally competitive in high-growth segments.
The report, titled Wired for Growth: India’s Electrical Equipment Opportunity, projects that exports from the sector could exceed $60 billion, while domestic consumption may grow to $170–205 billion over the next decade.
India’s electrical equipment industry, which spans power generation, transmission and distribution, storage, grid management, and end-use applications, is expected to grow at an annual rate of 11–13%. The report attributes this growth to improving cost competitiveness, stronger technological capabilities, and rising export potential.
Also read | Man Industries strengthens India’s global footprint with ₹981 crore Saudi pipe company takeover
According to the report, India’s domestic electrical equipment market reached $59 billion in FY2025, growing at 11% CAGR over the past five years. However, import dependence also increased significantly — from 22% in 2020 to 33% in 2025.
Amit V Gupta, Senior Partner at McKinsey & Company and co-author of the report, said India has already demonstrated global leadership in sectors such as IT services and auto components, and a similar strategy could help transform the country into a global player in electrical equipment technologies.
The report adds that without significant intervention, India’s import dependence in the sector could exceed 70% by 2035, resulting in a production shortfall of more than $130 billion. To avoid this, the country would need to scale domestic manufacturing capacity nearly fivefold from current levels.
Also read | L&T opens India's largest skill training institute in PM Modi's hometown Vadnagar
And this can be achieved by localization opportunities in key segments such as power electronics, batteries, solar photovoltaic (PV) cells and modules, and electrical subcomponents. Domestic demand for power electronics alone could surpass $17 billion by 2035, the report added.
The study also emphasized India’s potential to capture over 7.5% of global exports in sectors like solar PV and transformers by 2035, supported by stronger export infrastructure, improved competitiveness, and innovative service-based business models.
Bhavesh Mittal, Partner at McKinsey & Company, said that India must rapidly expand domestic manufacturing in areas such as power electronics, AC compressors, and the solar value chain to avoid future supply vulnerabilities, adding that “business-as-usual will not be enough".
The report added that India’s early success in subsea cables and renewable energy equipment demonstrates the country’s potential to become globally competitive in high-growth segments.
