Sectors / Electrical and automation
How electrical and automation manufacturers in India can grow
India's power system is being rebuilt and extended at the same time. Transmission lines, substations, distribution upgrades, smart meters and data centres are all adding orders for transformers, switchgear, panels, cables and motors.
The sector has two buying paths, and they need different approaches. Transformers, switchgear and panels are mostly tendered and bought through EPC contractors and approved vendor lists, while automation integrators sell project by project. Below we cover both.
The market picture
Production is growing fast, capacity is tight and imports are still large.
What's driving demand
- Transmission. The National Electricity Plan (Transmission) envisages ₹9.15 lakh Cr of investment over 2023–32.4
- Generation mix. Installed capacity reached 500.89 GW, including 256.09 GW from non-fossil sources, as of 30 September 2025.5
- Distribution. The Revamped Distribution Sector Scheme has an outlay of ₹3,03,758 Cr.6
- Data centres. India's data-centre capacity is projected to reach 1.8 GW by 2027.7
Who buys
- Tendered path. Transmission and distribution utilities, state discoms and EPC contractors buy transformers, switchgear, panels and cables to specification, through tenders and approved vendor lists.
- Project path. Automation integrators, OEMs and plant owners buy control panels, drives and motors one project at a time, on application know-how and responsiveness.
Capacity is tight. Quality transformer makers are reported to be booked about two years ahead in EHV, and 1–1.5 years in inverter-duty and medium distribution transformers.9 When incumbents are booked up, buyers look for credible new suppliers.
See the data
Output. The gross value of output in electrical equipment manufacturing rose from ₹2.32 lakh Cr1 in 2014-15 to ₹6.57 lakh Cr in 2023-24.1 Over the same period the number of factories grew from 7,639 to 8,100.1
Production growth, FY25. IEEMA's production index grew 14.0%.2 Power transformers led at 34.8%2, followed by HV switchgear (16.8%2), LT switchgear (14.8%2), towers (13.8%2) and motors (10.2%2). Meters grew 73.7%.2
Production growth, FY26. Growth continued at 11.7%3 in Q1 and 16.4% in Q2.3 HV/MV switchgear grew 33.5%3 and power transformers 26.7% in the first half.3
Transmission plan. Lines grow from 4.85 to 6.48 lakh ckm and transformation capacity from 1,251 to 2,342 GVA, against peak demand of 458 GW by 2032.4
Distribution. The Revamped Distribution Sector Scheme has gross budgetary support of ₹97,631 Cr.6 Of the 20.33 crore smart meters sanctioned, 5.73 crore were installed by 30 June 2026, and the scheme's sunset date is 31 March 2028.6
Data centres. About 1,530 MW was operational by the first nine months of 2025.8 The Ministry of Power projects 26.3 GW of AI data-centre load by 2031-32.6
Inputs. CRGO steel supply has a shortfall of about 30%.10
Imports. Import dependency is 58.4% of consumption1, the trade deficit was ₹53,183 Cr in FY24-251, and imports from China were ₹88,282 Cr.1 In FY25, India imported ₹21,914 Cr2 of LT switchgear and ₹3,308 Cr2 of HV switchgear (up 79%).2 Power transformer imports rose 525%2 to ₹444 Cr2, of which ₹349 Cr2 were units above 100 MVA, ₹242 Cr of those from China.2
Win more orders from the buyers you already sell to
On both buying paths, growth starts with being on more shortlists in your current market.
What's driving demand
- EPC contractors, discoms and utilities are tendering for transmission and distribution work.
- Installed transformers, switchgear and panels generate spares, refurbishment and replacement orders, and most makers under-sell them.
Where the opportunity is
- New customers in your core market. Tendered-path buyers and the evaluators who review their bids, plus integrators and plant engineers on the project path.
- Installed-base spares, replacements and sister plants. Your installed base and your customers' other sites.
What it takes
- Target lists of EPC contractors, discoms and utilities, plus the technical content their evaluators review.
- Case material and outreach that shows application depth to integrators.
- A map of your installed base and a programme to reach it.
Take your existing products to new export markets
Exports are already substantial, and the Gulf is growing fastest.
What's driving demand
- In FY25, exports included ₹17,150 Cr2 of LT switchgear (up 23%), and the top destinations were the USA, Germany, the UAE and the UK.2
- Cable exports (HS 8544) grew from US$1,716.9m in 2022 to US$2,158.5m in 2024.11
- Saudi Arabia's own imports of HS 8504 grew from US$506.1m in 2020 to US$2,184.1m in 2024.11
Where the opportunity is
- Regional and export expansion. Market-by-market entry into the Gulf, Europe, Australia and the Americas.
- Adjacent industry expansion. Panel and switchgear makers serving industrial plants can extend into renewables, water, data centres and metro rail.
- Approved vendor lists. On the tendered path, vendor-list status decides who can bid.
What it takes
- Market entry plans, partner search and export-ready content.
- Positioning for adjacent industries, where specifications are similar but the buyers differ.
- The positioning, proposals and capability content that EPC and utility vendor reviews expect. Registration itself remains your team's process.
See the data
FY25 exports. Beyond LT switchgear, exports included ₹9,236 Cr2 of cables (up 15%2), ₹6,015 Cr2 of motors (up 23%2) and ₹3,926 Cr2 of HV switchgear (up 29%).2
Cables by market. Saudi Arabia rose from US$23.0m to US$106.0m, the UAE from US$142.4m to US$228.1m, and Australia from US$51.7m to US$86.8m.11
Panels by market. Panel exports (HS 8537) to Saudi Arabia rose from US$8.7m to US$34.5m, and to Mexico from US$6.2m to US$19.4m.11
Launch new products for your current customers
Imports of large transformers, HV switchgear and motors point to clear substitution gaps.
What's driving demand
Where the opportunity is
- Higher-spec and import-substitute ranges. Higher-rated products launched to EPCs and utilities.
- Upstream and downstream machines, and modular lines. Panels alongside transformers, or drives alongside motors.
- Integrated skids and complete lines. Packaged substations, e-houses and complete control systems for buyers who want a single point of responsibility.
- Packaged AMCs and retrofits. Service capability turned into packaged offers.
What it takes
- A technical case and launch for each higher-rated product.
- Selling the adjacent items your buyers already source elsewhere.
- Marketing the integrated and service capability you already have.
Build a new line of business
For makers ready for a larger step, existing skills can anchor a new business.
Where the opportunity is
- Component supplier to own-brand OEM. Move from supplying enclosures, busbars or windings to selling your own branded product.
- Commercialising a captive foundry, forge or tool room. Sell the spare capacity of an in-house fabrication or tool room.
- New sectors and divisions. Build a separate division for an adjacent product line.
Book your Free Manufacturing Growth Diagnostic
We will review your products, buying path and markets against this data. Then we will show you which routes to take first.
Sources
- Ahmedabad University, Institute of Manufacturing and Economy, "Electrical equipment: wired for growth, still reliant on imported inputs", August 2026 (scope: NIC Division 27). ahduni.edu.in
- IEEMA, Indian Electrical Equipment Industry Overview, Apr–Mar 2025 (DGCI&S data), 2025. ieema.org
- IEEMA, Indian Electrical Equipment Industry Overview, Apr–Sep 2025, 2025. ieema.org
- Press Information Bureau, National Electricity Plan (Transmission), 23 September 2024. www.pib.gov.in
- Press Information Bureau, installed capacity, 29 October 2025. www.pib.gov.in
- Ministry of Power, Rajya Sabha answer, 27 July 2026. www.powermin.gov.in
- JLL, "India's data centre capacity to reach 1.8 GW by 2027", 9 April 2025. www.jll.com
- CBRE India, data centre report, 12 November 2025. www.cbre.co.in
- Hindu BusinessLine, "Rising transformer demand to keep Indian manufacturers busy for 2 years", 9 April 2025. www.thehindubusinessline.com
- Hindu BusinessLine, citing a GTRI report of December 2024, 14 March 2025. www.thehindubusinessline.com
- UN Comtrade, India-reported trade, HS 2022 codes 8501, 8504, 8535, 8537 and 8544, CY2020–2024, US$, accessed 21 October 2026. comtradeplus.un.org