India's power-transmission sector eyes ₹9L crore capex boom by 2032
What's the story
India's transmission and distribution (T&D) sector is gearing up for a major growth phase, with an estimated capital expenditure of around ₹9 lakh crore by 2032. The projection comes from a report by Motilal Oswal Financial Services, which highlights that the T&D capex cycle has already spurred significant growth in order books, revenue, and margin profiles for industry players since it started in FY22-23.
Market dynamics
Temporary slowdown in sector-level ordering
The report highlights a temporary slowdown in sector-level ordering, with only 16 schemes awarded in FY26 as compared to 45 in FY25. This is attributed to temporary bandwidth constraints and not a structural demand slowdown. Domestic manufacturers are running at high capacity utilization and focusing more on higher-voltage transformers, which have longer manufacturing cycles and testing timelines, thereby extending lead times.
Future outlook
National Electricity Plan outlines ambitious investment plan
India's National Electricity Plan outlines an ambitious investment plan of around ₹9 lakh crore in transmission. This is driven by large-scale renewable energy integration, which has already triggered a structural acceleration in orders over the past few years. The report notes that demand remains strong from both domestic and export markets while transformer supply has struggled to keep pace, creating longer lead times and a favorable environment for manufacturers.
Expansion prospects
Opportunity for Indian companies in global market
The report also highlights a historic surge in transformer demand in the US and Europe due to renewable energy integration, data center expansion, industrial electrification, EV charging infrastructure, and the urgent need to replace aging infrastructure. This creates a demand-supply mismatch and an opportunity for Indian companies as domestic manufacturers benefit from India's growing role as a manufacturing base within global OEM feeder factory networks.