India’s power-cable market is forecast to double by FY31

India’s power-cable market is projected to rise from USD 6.7-6.8 billion in FY26 to USD 13.5-14.3 billion in FY31, implying annual growth of 15-16%. CRISIL Intelligence attributes the forecast to renewable-energy additions, transmission expansion, distribution upgrades and electricity demand projected to grow 6-6.5% annually.

Why is India’s power-cable market forecast to double by FY31?

India’s power-cable market is forecast to nearly double because its projected value rises by USD 6.7-7.6 billion between FY26 and FY31. CRISIL Intelligence estimates market value at USD 6.7-6.8 billion in FY26 and USD 13.5-14.3 billion in FY31, at a 15-16% compound annual growth rate, or CAGR.

The value forecast is materially faster than the projected rise in domestic consumption volume. Consumption is expected to increase from 11.6 lakh km in FY26 to 14.1-14.8 lakh km in FY31, representing a 4-5% CAGR. The separate forecasts show that market value and physical cable consumption are different measures: one records market value, while the other records cable length.

E denotes estimate and P denotes projected. The forecast depends on the execution of infrastructure, distribution and generation plans identified by CRISIL Intelligence through FY31, rather than on electricity demand growth alone.

Which grid projects support India’s power-cable market?

Grid expansion supports India’s power-cable market because power cables transmit and distribute electricity between generators, substations and end users. The market covers low-voltage cable rated up to 1.1 kilovolts, medium-voltage cable rated from 1.1 kV to 33 kV, and extra-high-voltage cable rated from 66 kV to 220 kV.

The Central Electricity Authority, or CEA, has outlined a transmission system for integrating 501 gigawatts, or GW, of renewable energy by FY31. The plan includes 50,890 circuit km of transmission lines and 433,575 megavolt-amperes, or MVA, of substation capacity, at an estimated cost of Rs 2.44 lakh crore. Of the planned line additions, 25,960 circuit km are rated at 765 kV and 15,758 circuit km at 400 kV.

Distribution expansion adds a separate source of cable requirement. The CEA distribution perspective plan proposes 17,835 additional 66/33/22 kV feeders with 188,689 circuit km of length between FY23 and FY30, plus 92,920 additional 11 kV feeders with 968,504 circuit km of length. The plan also records 1,828,876 circuit km of low-tension line additions over FY23-FY30.

The Revamped Distribution Sector Scheme, or RDSS, is intended to improve supply quality and reliability and reduce aggregate technical and commercial, or AT&C, losses. AT&C losses combine technical losses in the network with commercial losses associated with billing and collection. Distribution infrastructure and smart-metering projects worth Rs 2.62 lakh crore had been sanctioned under RDSS, whose stated five-year period was FY22 to FY26.

How does renewable capacity growth affect India’s power-cable market?

Renewable capacity growth affects India’s power-cable market because solar and wind projects often require transmission infrastructure to carry electricity from generation sites to consumption centres. India’s installed generation capacity was 533 GW at the end of March 2026, including about 275 GW of renewable energy capacity, including large hydroelectric projects.

Renewable energy represented about 51% of installed capacity in March 2026, while coal and lignite represented about 42%. From FY26 to FY31, solar capacity is expected to grow by about 170 GW and wind capacity by about 47 GW. The CEA projection puts total installed capacity at 811 GW by FY31, including 320 GW of solar, 103 GW of wind and 59 GW of large hydro.

Power-sector investment is also projected to increase. CRISIL Intelligence estimates Rs 28-31 lakh crore of investment during FY26-FY30, compared with roughly Rs 19-21 lakh crore during FY19-FY25. Generation is projected to account for 69% of FY26-FY30 investment, transmission for 18% and distribution for 15%, compared with 57%, 16% and 27%, respectively, in FY19-FY25.

Renewable generation excluding hydro, pumped storage and battery energy storage systems is expected to account for 68-70% of total power-sector investment during FY26-FY30. This planned allocation, alongside the transmission roadmap, is the source-supported mechanism linking renewable additions to the power-cable market outlook.

What does electricity demand mean for India’s power-cable market outlook?

Electricity demand provides the operating basis for network additions, although its projected growth is below the market-value forecast. India’s electricity requirement increased from 1,275 billion units in FY19 to 1,707 billion units in FY26, a CAGR of about 4.3%. A billion unit is one billion kilowatt-hours of electricity.

CRISIL Intelligence projects electricity requirement of 2,312 billion units in FY31, versus 1,707 billion units in FY26, or 6-6.5% annual growth. The forecast identifies infrastructure-linked capital expenditure, economic growth and transmission and distribution strengthening as supports. Railway electrification, metro rail projects, electric-vehicle charging, data centres and appliance usage are also identified as demand drivers.

The source also identifies factors that can reduce demand supplied through the grid. Lower transmission and distribution losses are expected to reduce demand by 20-25 billion units annually on average between FY25 and FY29. An expected 32-33 GW of rooftop capacity over five years could reduce base grid demand by 2-3%, while industries are expected to add about 3-4 GW of captive capacity.

These offsets do not remove the disclosed need for new transmission and distribution infrastructure, but they make continued project execution important to the India power-cable market forecast. The market outlook therefore rests on the combination of capacity additions, grid modernisation and network expansion described by CRISIL Intelligence.

How has power-cable production changed before the FY31 forecast?

Power-cable production rose after the FY22 pandemic-period slowdown, though production is a physical measure and not a measure of market value. Production increased from 6.4 lakh km in FY22 to 8.4 lakh km in FY24 and 10.4 lakh km in FY26. FY26 production was marginally below the 10.5 lakh km recorded in FY25.

A separate production series reports power-cable output of 1,160 thousand km in FY26, compared with 838 thousand km in FY19, at a 4.8% CAGR. By weight, power-cable output increased from 529,012 metric tonnes in FY23 to 699,230 metric tonnes in FY26. In FY26, power cables were the largest cable category by weight, ahead of housing wires at 168,054 metric tonnes and flexible and other cables at 136,455 metric tonnes.

Power-cable production also has a polymer-material dependency. Power cables consumed 279,692 metric tonnes of polymer compounds in FY26, up from 211,605 metric tonnes in FY23, while the source estimates polymer compounds comprise about 40% of cable weight. The source notes that polymer import prices can be affected by crude-oil prices, supply disruptions, freight costs, port congestion and policy measures including import tariffs.

Conclusion

India’s power-cable market forecast combines a 15-16% annual value-growth projection with slower 4-5% projected consumption-volume growth. The FY31 market estimate of USD 13.5-14.3 billion is associated with renewable additions, the CEA’s 50,890 circuit km transmission plan, distribution feeder additions and electricity demand projected at 2,312 billion units.

The next factors to watch are the execution of RDSS infrastructure works, transmission additions and renewable capacity plans. The FY31 outlook specifically assumes solar capacity additions of about 170 GW and wind additions of about 47 GW from FY26, while lower network losses, rooftop solar and captive generation remain disclosed factors that can reduce grid-supplied demand.