India's renewable power equipment opportunity may touch $400 billion by 2035: Report
New Delhi, June 3
India's rapid electrification and renewable expansion could make it one of the world's largest markets for power equipment by 2035, a new report has said.
The report from Asian Power cited McKinsey's estimates that renewable energy equipment and high-end cables alone could represent a global opportunity of $350-400 billion by 2035, while the global power electronics market could exceed $140 billion.
The consultancy said domestic electrical‑equipment consumption reached $59 billion in FY25 after an 11 per cent compound annual growth rate over the past five years and could reach $170-205 billion by 2035.
However, India risks becoming heavily import‑dependent unless domestic manufacturing scales up, the report said.
The import dependence has already climbed from 22 per cent in 2020 to 33 per cent in 2025 and, under a business‑as‑usual scenario it could exceed 70 per cent by 2035, creating a potential production shortfall of more than $130 billion.
"The four segments with the greatest localisation urgency are power electronics, batteries, solar photovoltaic cells and modules, and subcomponents," the report said.
The report urged a fivefold expansion in domestic capacity across these areas, as well as in AC compressors, transformers, and cables, to reduce overall import dependence from 33 per cent today to less than 14 per cent by 2035.
The report flagged grid stabilisation technologies and power software as emerging high-growth segments in order to manage complexity of renewables-heavy electricity systems.
Further, subsea and high-speed rail cables were also mentioned as priority areas where India could build global export competitiveness.
India has crossed a historic milestone by connecting 40 lakh homes to rooftop solar under the 'PM Surya Ghar Muft Bijli Yojana'.
According to the International Energy Agency (IEA), nearly half of India's additional electricity demand between now and 2030 is expected to be met through solar energy.
Another quarter is likely to come from other low-carbon sources including wind, hydroelectric and nuclear power, the report said.
— IANS
Reader Comments
Interesting read. Coming from the US, I've seen how quickly India's energy sector is changing. The mention of subsea cables for global exports is smart - India's geographic position could be a big advantage. But I agree with the report: local manufacturing needs urgent attention. The 33% import dependence is a red flag if supply chains get disrupted.
Finally, someone is talking about the "business-as-usual" risk. 🙏 We keep celebrating renewable capacity additions, but if we don't make the equipment here, what's the point? Importing solar panels and batteries defeats the purpose of energy independence. Hope the government offers more PLI schemes for power electronics and battery cells. Also, rooftop solar for 40 lakh homes is fantastic progress! 💡
This is the kind of forward-looking analysis we need. The global power electronics market alone exceeding $140 billion is a huge area to focus on. We've been good at software, but hardware manufacturing needs a big push. The report's suggestion to reduce import dependence from 33% to 14% is ambitious but achievable with the right policies. Let's not miss this bus like we did with semiconductors earlier.
Good news, but I'm a bit skeptical. Every five years we hear about India becoming a manufacturing hub, but ground reality is different. Permissions, land acquisition, power costs... these are real hurdles. The report mentions subsea cables and high-speed rail cables - those are high-tech products. Do we have the skilled workforce and R&D for that? We need to start with simpler equipment first and then move up the value chain. Just my two paise. 💭
M We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.