engineering sector is the largest of the industrial sectors in India. It
accounts for 27% of the total factories in the industrial sectors and
represents 63% of the overall foreign collaborations. India’s engineering
sector is divided into two major segments - heavy engineering and light
engineering. Turnover of the capital goods industry is forecast to reach US$
115.17 billion by 2025.
advantage vis-a-vis peers in terms of manufacturing cost, market knowledge,
technology and creativity has been the driving force behind engineering export
from India. Index of industrial production (IIP) for electrical equipment industry
stood at 105.5 in FY20.
of telecom instruments increased from US$ 2.58 billion in 2018-19 to US$ 4.68
billion in 2019-20.
2021, the value of engineering exports from India was US$ 8.64 billion, up by
53% in May 2020.
Ministry for Commerce and Industry and Railways, the Government will make all
efforts to ensure that the export of engineering goods reach US$ 200 billion by
government expanded the ‘National Infrastructure Pipeline (NIP)’ to 7,400
projects. ~217 projects worth Rs. 1.10 lakh crore (US$ 15.09 billion) were
completed as of 2020.
engaged in the engineering sector are virtually on a roll. Capacity creation in
sectors like infrastructure, power, mining, oil & gas, refinery, steel,
automotive, and consumer durables have been driving the demand in the
engineering sector. Separately, the approval of significant number of Special
Economic Zones (SEZs) across the country and the development of the
Delhi-Mumbai Industrial Corridor (DMIC) across seven states is expected to
further bolster the engineering sector.
Government has proposed granting of loans up to Rs. 1 crore (US$ 0.15 million)
for MSMEs within 59 minutes through a committed online portal. Under the
Interest Subvention Scheme for MSMEs, Rs. 350 crore (US$ 52.50 million) was
allocated for FY20. In November 2020, the government set up a 22-member
inter-ministerial committee for strengthening India’s capital goods sector.
100% Foreign Direct Investment (FDI) allowed through the automatic route and
initiatives like Make in India, major international players have entered the
Indian engineering sector due to significant growth opportunities available.
According to The United Nations Conference on Trade and Development (UNCTAD),
India ranked among the top 10 recipients of Foreign Direct Investment (FDI) in
2019, attracting US$ 49 billion in inflows, a 16% increase from the previous
year, driving FDI growth in South Asia. FDI inflows for miscellaneous
mechanical and engineering sectors stood at US$ 3,669.51 million between April
2000 and December 2020 according to the data released by Department for
Promotion of Industry and Internal Trade (DPIIT).
to India Ratings and Research (Ind-Ra), the solar production-linked insurance
(PLI) scheme will support 8-13% of photovoltaic energy plant requirements until
2029-30 and will help add 20 GW (gigawatts) of energy in the next five years.