Engineering Industry in India

The engineering sector is the largest of the industrial sectors in India, as it accounts for 27% of the total factories in the industrial sector and represents 63% of the overall foreign collaborations.

Advantage India

Robust
Demand

*The electrical equipment market share in India is expected to increase from US$ 52.98 billion in 2022 to US$ 125 billion by 2027, implying a robust CAGR of 11.68%.

*Market size for the Indian Construction Equipment Market stood at US$ 7.2 billion in FY23 and is forecasted to grow at a CAGR of 15% for next five years, as per the estimates of CII.

Robust Demand Icon

Attractive
Opportunities

*In Interim Budget 2024-25, Government has committed an outlay of Rs. 11.11 lakh crore (US$ 133.6 billion) during 2024-25 towards infrastructure capital expenditure compared to Rs. 10 lakh crore (US$ 120 billion) (BE) during 2023–24.

*Ministry of Road Transport & Highways aims for 13,814 km of national highway construction in FY 2024 and a network to two lakh km by 2025.

*An Urban Infrastructure Development Fund (UIDF) will be managed by National Housing Bank, which will enable creation of infrastructure in Tier 2 and 3 cities by supporting viability gap funding, enabling creation of more bankable projects, enhancing access to external funding, among others.

Attractive Opportunities

Policy
support

*De-licensed engineering sector; 100% FDI permitted.

*Ministry of Heavy Industries has notified the Scheme on Enhancement of Competitiveness in the Indian Capital Goods Sector- Phase-II for providing assistance to Common Technology Development and Services Infrastructure. The scheme has a financial outlay of Rs. 1207 crores with Budgetary support of Rs.975 crore and Industry Contribution of Rs.232 crore

*Indian Electrical Equipment Industry Mission Plan (2012-22), aims to make India as a preferred destination for production of electrical equipment to achieve an output of US$ 100 billion by balancing the trade deficit in the sector.

*In October 2022, NSIC Signs MoU with Phillips Machine Tools India Pvt. Ltd. for Skill Development Training in Additive Technologies which is the future of manufacturing.

Policy Support

Higher
Investments

*To enhance opportunities for private investment in infrastructure - Infrastructure Finance Secretariat is being established who will assist all stakeholders for more private investment in infrastructure, including railways, roads, urban infrastructure, and power.

*The Government’s ‘Vision Plan 2030’ proposed an action plan to become a manufacturing and export hub for construction equipment and propel the development of world-class infrastructure in the country.

Higher Investments
Last updated: May, 2024

Engineering Clusters

  • Maharashtra
  • Tamil Nadu
  • Andhra Pradesh
  • Telangana
  • Gujarat
  • Karnataka
Engineering Clusters in India

Posters

MORE
BUILDING THE FUTURE

BUILDING THE FUTURE

Engineering sector accounts for 27% of the total factories in the industrial sectors and represents 63% of the overall foreign collaborations.

IBEF Campaigns

MORE
Gulfood Dubai 2023

Gulfood Dubai 2023

APEDA India Pavilion Gulfood February 20th-26th, 2022 | World Trade Centre,...

India Organic Biofach 2022

India Organic Biofach 2022

Ibef Organic Indian Pavilion BIOFACH2022 July 26th-29th, 2022 | Nuremberg, ...

Case Studies

MORE

Spiritual Tourism in India: Analysing Economic Impact and Growth Potential

Spiritual Tourism in India: Analysing Economic Impact and Growth Potential

India, the country where millions of travellers come to seek spiritual fulfilment as part of their tourism journey, makes it an integral part of India...

Financial Resurgence: A Comprehensive Exploration of the Recent Boom in Mutual Fund Investments in India

Financial Resurgence: A Comprehensive Exploration of the Recent Boom in Mutual Fund Investments in India

Mutual funds play an indispensable role in capital markets, serving as a gateway for individuals and institutions to access a diverse range of securit...

Transforming India's Logistics Sector: Challenges and Opportunities

Transforming India's Logistics Sector: Challenges and Opportunities

The logistics industry plays a vital role in the dynamic economic landscape of India by enabling the efficient movement of goods and services througho...

IBEF BLOG

MORE
Digital India: Advancements in E-Governance Services
29 May 2024

Digital India: Advancements in E-Governance Services

Digital India was launched in India in 2015 with the aim of transitioning I...

Air Travel Trends: India's Rising Importance in the Global Passenger Market
29 May 2024

Air Travel Trends: India's Rising Importance in the Global Passenger Market

The Indian aviation sector has been experiencing great growth over the past...

Transforming the Toll Payment Infrastructure in India
22 May 2024

Transforming the Toll Payment Infrastructure in India

India's booming roads and cars are paving the way for smart traffic man...

Partners
Loading...