New Delhi, May 22 -- India's electrical equipment sector could become a USD 235-billion manufacturing opportunity by 2035, but risks a production shortfall exceeding USD 130 billion and import dependence rising above 70 per cent if domestic manufacturing capacity is not rapidly expanded, according to a new report by McKinsey & Company.

The report highlighted that India's domestic electrical equipment consumption has reached approximately USD 59 billion in FY2025, growing at an annual rate of 11 per cent over the past five years. However, import dependence has simultaneously climbed from 22 per cent in 2020 to 33 per cent in 2025, exposing a widening gap between surging demand and domestic manufacturing capability. Current domestic produc...