India’s electrical equipment industry is entering a transformational phase that could redefine the country’s manufacturing and industrial landscape over the next decade. According to a recent report by McKinsey & Company titled Wired for Growth: India’s Electrical Equipment Opportunity, the sector is expected to witness massive expansion driven by increasing domestic demand, rising electrification, renewable energy deployment, industrial modernisation and export opportunities. The report projects that the India electrical equipment industry growth story could become one of the most important industrial success stories for the country by 2035.

The report estimates that India’s domestic electrical equipment production could increase from around Rs. 4.42 lakh crore (US$ 50 billion) in 2025 to nearly Rs. 17.94 lakh crore to Rs. 21.62 lakh crore (US$ 195-235 billion) by 2035. This projected expansion reflects the growing importance of the India electrical equipment market in supporting economic growth, infrastructure development and the transition toward clean energy.

India has already emerged as one of the fastest-growing economies in the world, and the demand for reliable electricity, advanced power systems and modern industrial equipment is increasing rapidly across sectors. The country’s urbanisation push, industrial expansion, digital transformation and infrastructure development are creating unprecedented opportunities for manufacturers operating in the electrical equipment production India ecosystem.

One of the key reasons behind this expected growth is the continuous rise in electricity consumption. India’s power demand has been increasing steadily due to rising household electrification, growing industrial activity, expansion of data centres, electric vehicle adoption and increasing use of electronic devices. As the country works toward becoming a major global economic power, investments in power infrastructure India are expected to accelerate significantly.

The McKinsey report highlighted that domestic consumption of electrical equipment could reach nearly Rs. 15.64 lakh crore to Rs. 18.86 lakh crore (US$ 170-205 billion) by 2035. This means the Indian market itself will remain one of the biggest growth drivers for the sector. From residential consumers to industrial users, demand for transformers, cables, switchgear, batteries, solar equipment and power electronics is expected to grow rapidly.

Another major growth driver for the India electrical equipment industry is the government’s strong focus on renewable energy. India has set ambitious clean energy targets, including large-scale solar and wind energy capacity additions. Renewable energy systems require advanced electrical infrastructure such as inverters, transmission equipment, transformers, batteries and grid stabilisation technologies. This is creating huge opportunities for domestic manufacturers.

The India renewable energy equipment sector is expected to witness especially strong growth in the coming years. Solar photovoltaic cells and modules, battery energy storage systems and power electronics are becoming increasingly important as India moves toward cleaner energy sources. The country’s renewable energy ambitions are not only helping reduce carbon emissions but are also encouraging domestic manufacturing and technological innovation.

The report further noted that exports could become another powerful engine of growth for the industry. According to McKinsey, India’s electrical equipment exports may exceed Rs. 5.52 lakh crore (US$ 60 billion) by 2035. This could significantly strengthen India’s position as a global manufacturing and supply-chain hub.

India is increasingly being viewed as an attractive alternative manufacturing destination due to global supply chain diversification trends. Several multinational companies are exploring opportunities to reduce dependence on single-country sourcing models. This shift presents a major opportunity for India to expand its footprint in global electrical equipment manufacturing.

The report stated that India has already demonstrated strong global competitiveness in sectors such as information technology services and auto components. Experts believe the country has the potential to replicate similar success in electrical equipment manufacturing through a combination of supportive government policies, innovation, entrepreneurship and investments in technology.

The expected annual growth rate of the sector between 2025 and 2035 is estimated at around 11-13%, making it one of the fastest-growing industrial segments in the country. Such rapid expansion would not only create large-scale employment opportunities but also strengthen India’s industrial ecosystem and improve its manufacturing capabilities.

However, despite the strong growth outlook, the report also highlighted several major challenges that need immediate attention. One of the biggest concerns is the rising dependence on imports. According to the report, imports already account for nearly 33% of domestic demand in 2025, compared with around 22% in 2020. This growing dependence on imported components and equipment poses risks to India’s long-term industrial competitiveness.

If current trends continue under a business-as-usual scenario, import dependence could rise beyond 70% by 2035. This could result in a production shortfall of over Rs. 11.96 lakh crore (US$ 130 billion). Such a scenario may weaken domestic manufacturing capabilities and increase vulnerability to global supply chain disruptions.

The report emphasised that reducing import dependence must become a strategic national priority. To address this challenge, McKinsey recommended a five-fold expansion in domestic manufacturing capacity, especially in critical areas such as power electronics, batteries, transformers, solar photovoltaic cells and modules, air-conditioner compressors, cables and wires.

Localisation has been identified as one of the most important strategies for strengthening the India manufacturing sector news outlook. Increasing domestic production can help India reduce import dependence to below 14% by 2035, while also improving supply-chain resilience and industrial competitiveness.

The importance of India power electronics market expansion cannot be ignored in this transformation journey. Power electronics play a critical role in renewable energy systems, electric vehicles, industrial automation and smart grids. As India’s energy ecosystem becomes more digital and decentralised, demand for advanced power electronics solutions is expected to surge.

Similarly, the growth of the transformer manufacturing India segment is likely to remain strong due to rising investments in transmission and distribution infrastructure. Transformers are essential for ensuring efficient power transfer across the electricity network. Expansion of renewable energy capacity and electrification of rural and urban areas will further drive demand for modern transformer technologies.

The report also identified several emerging sectors that could create substantial long-term opportunities for Indian manufacturers. These include high-speed rail systems, subsea cables, grid stabilisation technologies, advanced batteries and power software solutions. Many of these industries are expected to experience strong global demand over the next decade.

India’s push toward modern transportation systems is also expected to contribute significantly to the growth of electrical equipment manufacturing. High-speed rail projects, metro rail expansion and electric mobility initiatives require advanced electrical systems and components. This creates opportunities for local manufacturers to participate in large infrastructure projects.

The rise of electric vehicles is another major factor supporting the growth outlook. EV charging infrastructure, battery systems, electric drivetrains and smart energy management technologies all require sophisticated electrical equipment. As EV adoption accelerates in India, demand across these segments is expected to increase rapidly.

Grid modernisation is becoming equally important as India integrates more renewable energy into its power system. Renewable energy sources such as solar and wind are intermittent in nature, which creates challenges for grid stability. Advanced electrical equipment and smart grid technologies are essential for managing these complexities efficiently.

Battery energy storage systems are emerging as a critical part of the future energy ecosystem. These systems help store excess renewable energy and release it when required, ensuring stable electricity supply. India’s growing focus on energy storage is expected to generate significant investment opportunities for manufacturers.

The report also highlighted the importance of innovation and research in driving future growth. Indian companies will need to invest heavily in product development, automation, advanced manufacturing technologies and skill development to remain globally competitive.

Government policies are likely to play a central role in shaping the future of the sector. Incentive schemes, production-linked incentives, infrastructure investments and ease-of-doing-business reforms can help accelerate domestic manufacturing growth. Policy support will be especially important for attracting global investments and encouraging technology transfer.

The expansion of the India electrical equipment market could also create substantial employment opportunities. Manufacturing facilities, supply chains, logistics networks and engineering services associated with the sector are expected to generate jobs across skill levels. This can contribute significantly to India’s economic development goals.

Small and medium enterprises are likely to benefit as well. Many MSMEs operate within the electrical equipment supply chain, producing components, cables, connectors and specialised engineering products. Increased domestic manufacturing activity could strengthen these businesses and improve their global competitiveness.

Digital transformation is another important factor influencing the industry’s future. Smart manufacturing technologies, industrial automation, artificial intelligence and data-driven operations are becoming increasingly important in electrical equipment production. Companies adopting these technologies may gain significant efficiency and productivity advantages.

India’s ambition to become a global manufacturing hub aligns closely with the growth trajectory of the electrical equipment sector. As global companies diversify supply chains and seek reliable manufacturing partners, India’s expanding industrial capabilities can position the country as a preferred destination.

Infrastructure development remains one of the strongest long-term demand drivers. Large-scale investments in airports, railways, highways, urban infrastructure and industrial corridors require massive electrical infrastructure support. This sustained demand environment provides long-term visibility for manufacturers and investors.

The increasing adoption of smart cities and digital infrastructure will also create opportunities for advanced electrical systems. Smart grids, intelligent lighting, energy-efficient buildings and connected infrastructure solutions require sophisticated electrical equipment and integrated technologies.

India’s energy transition goals are expected to further strengthen growth momentum. The country aims to significantly increase renewable energy capacity while improving energy efficiency and reducing carbon emissions. Achieving these objectives will require continuous investment in electrical infrastructure and manufacturing capabilities.

Experts believe that the next decade could become a defining period for the India electrical equipment industry growth journey. If India successfully expands domestic manufacturing, reduces import dependence and strengthens innovation capabilities, the sector could emerge as a global leader.

The report’s projections indicate that India is at a critical turning point. The decisions made today regarding localisation, industrial policy, infrastructure investments and manufacturing expansion could determine whether the country becomes a major global electrical equipment manufacturing hub.

At the same time, global demand trends are creating favourable conditions for Indian companies. Countries worldwide are investing heavily in renewable energy, grid upgrades, electric mobility and digital infrastructure. Indian manufacturers have an opportunity to participate in these global growth markets.

The coming years are likely to witness intense competition among countries seeking to strengthen manufacturing capabilities in clean energy and advanced industrial technologies. India’s ability to scale up manufacturing quickly and efficiently will play a major role in determining its success.

Industry leaders believe collaboration between government, private companies, technology providers and research institutions will be essential for building a globally competitive ecosystem. Investment in skill development and workforce training will also remain critical.

The electrical equipment latest news surrounding India’s industrial transformation reflects the growing confidence in the country’s long-term manufacturing potential. Strong domestic demand, export opportunities, renewable energy growth and infrastructure expansion together create a powerful foundation for future growth.

The McKinsey report presents an optimistic vision for the future while also warning about the risks associated with rising import dependence. The next decade may therefore become a period of both opportunity and strategic decision-making for the sector.

If India successfully implements localisation strategies and expands domestic production capacity, the country could not only meet its own growing demand but also emerge as a major exporter of advanced electrical equipment to global markets.

The projected rise of the India electrical equipment industry to US$ 235 billion by 2035 represents far more than just industrial growth. It reflects India’s broader ambitions of becoming a global manufacturing powerhouse, strengthening energy security, supporting clean energy goals and building a resilient economic future.

As investments continue to flow into renewable energy, infrastructure, industrial automation and power systems, the sector is expected to remain at the centre of India’s economic transformation story for years to come.

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