Growth of Engineering Industry in India - Infographic

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

* Demand in the engineering industry segment is driven by investments and capacity creation in core sectors like power, infrastructure developments, mining, oil and other sectors like the general manufacturing sector, automotive and process industries, and consumer goods industry.

Robust Demand Icon

Attractive
Opportunities

* In Budget 2023-24, Government has committed an outlay of Rs. 10 lakh crore (US$ 120 billion) during 2023-24 towards infrastructure capital expenditure compared to Rs. 7.5 lakh crore (US$ 90 billion) (BE) during 2022–23.

* 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.

* In June 2022: Ministry of Heavy Industries (MHI) and Ministry of Skill Development and Entrepreneurship (MSDE) sign MoU to facilitate training in engineering trades to boost capital goods sector.

Attractive Opportunities

Policy
support

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

* An amount of Rs. 54.22 crore (US$ 6.5 million) utilized under the Scheme on ‘Enhancement of Competitiveness in Indian Capital Goods Sector in the financial year 2020-21.

* 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.

* In May 2022, MHI signs an MoU with National Research Development Corporation to facilitate various activities for smooth implementation of the Scheme for Enhancement of Competitiveness in the Indian Capital Goods Sector.

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.

Higher Investments
Last updated: Jul, 2023

Engineering Clusters

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

Posters

MORE
Engineering Companies in India

Engineering Companies in India

India's construction equipment market was estimated at US$ 3.47 billion in 2013 ans is expected to reach US$ 7.7 billion by 2016 growing at a CAGR of 20.5 per cent.

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

Millets-The Nutritional Powerhouse

Millets-The Nutritional Powerhouse

The millets industry in India has emerged as a beacon of hope and progress, symbolizing the nation's commitment to health, sustainability, and pro...

Revolutionizing Healthcare in India

Revolutionizing Healthcare in India

The Indian healthcare industry comprises hospitals, medical devices, clinical trials, outsourcing, telemedicine, medical tourism, health insurance, an...

The success of e-NAM in India

The success of e-NAM in India

The agricultural supply chain in India is a vital component of the nation's economy, rural development, and food security. With its diverse agro-c...

IBEF BLOG

MORE
Opportunities and Strategies of Embedded Financial Services in India
26 Sep 2023

Opportunities and Strategies of Embedded Financial Services in India

In recent years, a revolutionary trend has evolved in the financial service...

Food Diversity in India
26 Sep 2023

Food Diversity in India

The traditional Indian palate has evolved over centuries and has its roots ...

Sustainable Infrastructure: India's Path to a Resilient Future
19 Sep 2023

Sustainable Infrastructure: India's Path to a Resilient Future

Infrastructure development serves as a catalyst for India's journey tow...

Partners
Loading...