Data centre demand and renewable push to drive capital goods orders
What Happened
India's expanding power transmission network and rising data centre demand are expected to boost the engineering and capital goods sector, according to a report by 360 ONE Capital. Growing renewable-energy integration, grid modernisation, and increasing electricity needs are likely to drive demand for transformers, switchgear, and other power equipment.
Key Takeaways
The report expects India's HVDC transmission capacity to rise from 34.5 GW in FY27 to 55 GW by FY32, while data-centre capacity could increase from below 2 GW to 13-18 GW by 2030, creating significant opportunities for capital goods companies. However, project delays and higher input costs remain key risks.