Demand for power transmission and distribution equipment correlates with investment in transmission and distribution network. India is on the verge of becoming a major power nation among developing economies, and increasing demand for electricity, new power generation capacity additions and expansion of transmission and distribution infrastructure have become major growth drivers for the sector.Besides, India has a number of advantages in the manufacturing sector that make it an attractive investment destination.The sector has been witnessing increasing entry of global players through various routes, such as the Hitachi-ABB deal. Apart from a large and growing domestic market, India also has a well-developed supplier base, availability of skilled manpower at relatively lower costs, supportive regulatory environment and good support infrastructure.Additionally, Indian manufacturers are becoming more competitive with respect to their product designs, manufacturing & testing facilities. The industry is poised for growth in view of the government thrust on the power and construction industries. One may invest in these stocks in a staggered manner for the long term and can earn healthy returns.Chairman & Managing Director,SMC Investments and Advisors Limited

Source: Economic Times December 22, 2018 05:37 UTC