Electrical Sector Growth: 8% Long Term Forecast

New Delhi, Dec 4 (PTI) India's electrical sector is expected to grow at around 8 per cent in the long term as the country's economy is expanding in the range of 7 to 8 per cent, a senior official said on Thursday.

Addressing the electrical equipment makers' body, IEEMA's 13th Edition of Trafotech Global, Chairman of Central Electricity Authority, Ghanshyam Prasad, highlighted the rapidly growing demand in the transformer industry.

He spoke on the need for demand projections and plans to build visibility for the industry.

"We are working closely with IEEMA to bring out plans and demand projections for equipment in the power industry. Our plans for 2034-35 and 2035-36 are already underway and will be announced soon," he said.

The official said that with India's GDP growing at 7–8 per cent, the electrical sector is expected to maintain a similar pace of around 8 per cent in the long term.

"At the back of this, we expect to double our installed capacity by 2034-35 and to meet this demand, backward integration will play a crucial role in this. Add to that the further integration required to achieve net zero. All of this will require large amounts of electrical equipment made available in a timely manner. Therefore, a clear visibility will enable us not only to reduce the lead time but, in fact, move towards shelf-driven mode," he noted.

Prasad added that the sector has now developed clear visibility for the next five, ten, and fifteen years, creating a strong foundation for stability.

These plans will also be reviewed annually.

Vikram Gandotra, President, IEEMA, stated that India's electrical and industrial equipment sector is at the cusp of unprecedented growth, set to expand from USD 75 billion today to over a trillion dollars by 2047.

He noted that with strong domestic demand, global supply chain diversification and more than USD 20 billion of FDI in the power sector, India is rapidly strengthening its position as a trusted global manufacturing hub.

The transformer industry is witnessing robust investments of over Rs 35,000 crore across original equipment manufacturers and components, driven by the accelerated build-out of T&D (transmission and distribution), renewables, storage, mobility and smart grid infrastructure, he added.

Trafotech Global is a forum for cross-sector dialogue, practical innovation and future-ready thinking.

IEEMA, established in 1948, is the apex association of manufacturers of electrical, industrial electronics and allied equipment in India.