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HomeInfrastructureIndia's Wires and Cables Industry Driving Forces and Growth Trajectory

India’s Wires and Cables Industry Driving Forces and Growth Trajectory

India’s wires and cables (W&C) industry, valued at an estimated ₹680-730 billion in FY23, continues to witness robust growth propelled by several megatrends. Key among these is the government’s steadfast focus on infrastructure development, allocating a substantial budget of ₹10 lakh crore in FY24.

This investment drive has significantly spurred demand across sectors such as power, railways, real estate, renewables, and defense, consequently fuelling the need for W&C products. The residential real estate sector is experiencing an upswing, with housing sales reaching a 9-year peak in 2022. Factors like low interest rates, government schemes such as PMAY, and the evolving work-from-home culture have spurred demand for larger homes, consequently boosting the requirement for household electrical appliances, including wires and cables.

Furthermore, the government’s ambitious target of achieving 500 GW of installed renewable energy capacity by 2030 is anticipated to drive substantial demand for power transmission cables. Additionally, the growth in the IT and telecom sectors, propelled by factors like the surge in data centers, 5G transition, and increasing adoption of fiber-to-the-home (FTTH) connectivity, is augmenting the demand for optical fiber cables. In the organized segment of the W&C industry, players are gaining market share owing to heightened consumer awareness and disruptions caused by the pandemic, which affected smaller players disproportionately. Internationally, India has emerged as an attractive hub for companies seeking to diversify their supply chains, thereby presenting export opportunities for Indian W&C firms. Within the Fast-Moving Electrical Goods (FMEG) segment, megatrends such as premiumization, India’s demographic dividend, government initiatives like Housing for All and Smart Cities, and the ascent of smart homes are driving growth. Organized players are prioritizing innovation, optimizing distribution channels, and exploring alternate sales avenues such as e-commerce to capitalize on market expansion opportunities.

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