The wire & cable market in India, which comprises nearly 40% of the electrical industry, is growing at a CAGR of 15%. Lets have a quick dive into 'why' this sector will growth faster & also look at some #stocks for long term investing !
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Govt's impetus on infrastructure sectors such as power, railways, roads & petrochem is speeding up demand for power. Also private capex & newer technologies like digital is increasing & widening the scope for the growth of the wire & cable industry in India.
As per IEEFA, Indiaโs gross domestic product (GDP) will double over the next 8 years, growing at a rate of 7 to 7.5% per annum & subsequently the demand for electricity is expected to nearly double.
With aggressive allotment to electrification, road, rail & infra projects by the government, the Transmission & Distribution sector is set to boom. Also there is greater focus on high voltage transmission lines along as the govt aims to provide 24ร7 power, Pan- India.
The government targets increasing the renewables capacity to 500 GW by 2030 & various incentives measures are in place to even surpass this. As a result the need of electric power generators ( for wind turbines) have also increased the demand for electrical wires & cables.
The โSmart Cityโ project is expected to promote large-scale growth in infrastructure, telecom, power generation, T&D, engineering & automotive sectors. Is great news for power & wire players.
Moreover, all the incentive schemes like Ujwal Discom Assurance Yojana (UDAY), Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY), Integrated Power Development Scheme (IPDS) & Pradhan Mantri Sahaj Bijli Har Ghar Yojana will keep boosting demand for power & cables going forward.
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