Capital Goods – Sector Update – Relaxation for Chinese firms raises competition concerns
Published on 03 Jul 2026
We expect the exemption likely to have a negligible impact on the current order books of HVDC players such as GE Vernova T&D India, Hitachi Energy and Siemens Energy, given their technological leadership, strong product portfolio and dominant market share across the HVDC product basket. Moreover, these MNCs have envisaged total capex of ~INR50bn to strengthen domestic manufacturing capabilities for high-value HVDC equipment. On the other hand, the exempted Chinese players in India remain limited in terms of capabilities and manufacturing capacity. However, we believe the exemption could lead to some price normalization in overlapping product categories with HVDC players, although the strong multi-year demand outlook is likely to mitigate any meaningful impact.
