The Engineering sector in India is the largest and most diversified of all industrial manufacturing sectors. It is a strategically important sector to the economy as the output drives a broad base of industries acting as a critical input.
The Indian engineering sector is divided into two major segments - heavy engineering and light engineering. The capital goods and engineering turnover in India is expected to reach USD 125.4 billion by FY17. Likewise, Electrical equipment market size is forecast to reach USD 100 billion by FY22.
Comparative advantage vis-à-vis peers in terms of manufacturing costs, market knowledge, technology and creativity has been a driving force for engineering exports from India. Engineering exports from India stood at US$ 70.6 billion in FY15, registering a Compound Annual Growth Rate (CAGR) of 11.1% over FY08-15.
With 100 per cent 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. Cumulative FDI in the sector totaled USD 26.6 billion over April 2000–May 2015.
The government has come out with a comprehensive policy for the capital goods industry that envisages three-fold growth for the sector to 111,225 million USD, contributing 20% to the manufacturing sector up from the current 12%.
The capital goods sector offers direct employment to 1.4 million people and employs 7 million people indirectly.
The Engineering sector in India is the largest and most diversified of all industrial manufacturing sectors. It is a strategically important sector to the economy as the output drives a broad base of industries acting as a critical input.
The Indian engineering sector is divided into two major segments - heavy engineering and light engineering. The capital goods and engineering turnover in India is expected to reach USD 125.4 billion by FY17. Likewise, Electrical equipment market size is forecast to reach USD 100 billion by FY22.
Comparative advantage vis-à-vis ...