CABLES AND WIRES INDUSTRY: GAINING TRACTION BUT CHALLENGES PERSIST
- Credit Rating Agency in India
- Industry Report
- CABLES AND WIRES INDUSTRY: GAINING TRACTION BUT CHALLENGES PERSIST
The demand for power cables is driven by sectors, such as electricity generation, real estate, and public infrastructure like railways and highways, whereas the demand for telecom cables is driven by sectors, such as telecommunication and electronics. The power and telecom sectors are significant consumers of cables and wires in India. The power sector requires cables for transmission and distribution of electricity, while the telecom sector uses cables for network infrastructure. The demand for power cables is driven by the country's growing power generation capacity, while the increasing demand for high-speed internet and data services drives telecom cables.
The output of the wire and cables industry is expected to grow in 2025-26, driven by healthy demand from user industries. Additionally, rising exports amid strong global demand for power cables will also support production. Government initiatives like Pradhan Mantri Awas Yojana (PMAY), Smart Cities Mission, rural electrification, and Bharat Net Phase III are expected to pick up pace. This will generate strong demand for various types of wires and cables. The margins are projected to expand by 100 to 200 basis points as compared to the year-ago period.