Engineering Industry in India

In FY24, exports of engineering goods stood at US$ 109.32 billion, reflecting a marginal growth of 2.1% of YoY growth.

Advantage India

Robust
Demand

*The Indian electrical equipment market is set to experience significant growth in the coming years, with a forecasted incremental growth of Rs. 6,44,533 crore (US$ 76.24 billion) at a compound annual growth rate (CAGR) of 14.3% from FY24 to FY28.

*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 5 years, as per the estimates of CII.

Attractive
Opportunities

*In the Union Budget FY26, the government announced capex of Rs. 11,21,000 crore (US$ 128.42 billion) (3.1% of GDP).

*5,614 km highways built in FY25 vs 5,150 km target; record capex Rs. 2,50,000 crore (US$ 28.53 billion) (↑21% YoY, ↑45% vs FY23).

*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.

Policy
Support

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

*The capital goods sector in India benefits from a liberal policy regime, with no industrial licensing, 100% FDI under the automatic route (except from land-border nations), unrestricted technology transfer payments, and no import or export restrictions.

*The National Capital Goods Policy (2016) aims to boost India’s capital goods sector by raising its manufacturing share from 12% in 2016 to 20% by 2025, doubling production, increasing exports to 40% of output, and advancing technology capabilities to global standards.

*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.

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.

Snapshot Showcase Infographics Reports

Last updated: Oct, 2025

Larsen and Toubro (L&T)

Larsen & Toubro (L&T) is a major technology, engineering, construction, manufacturing, and financial services conglomerate, with global operations. L&T addresses critical needs in key sectors - hydrocarbon, infrastructure, power, process industries and defence - for customers in over 30 countries around the world.

Company Website

Bharat Heavy Electricals Limited (BHEL)

Established in 1964, Bharat Heavy Electricals Limited (BHEL) is the largest engineering and manufacturing enterprise in India in the energy and infrastructure sector with the capability to manufacture the entire range of power plant equipment. The company caters to core sectors like power generation, transmission, industry, transportation, renewable energy, oil & gas, water, defence and aerospace and e-mobility and energy storage solutions and has references in 83 countries across the globe. BHEL’s mammoth size of operations is evident from its widespread network of 16 manufacturing units, two repair units, four regional offices, eight service centres, one subsidiary, three overseas offices, five joint ventures, 15 regional marketing centres and more than 150 project sites across India and abroad.

Company Website

Havells

Havells India Limited is a leading Fast-Moving Electrical Goods (FMEG) Company and a major power distribution equipment manufacturer with a strong global presence. The company enjoys enviable market dominance across a wide spectrum of products, including Industrial & Domestic Circuit Protection Devices, Cables & Wires, Motors, Fans, Modular Switches, Home Appliances, Air Conditioners, Electric Water Heaters, Power Capacitors, Luminaires for Domestic, Commercial and Industrial Applications.

Company Website

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Engineering Clusters

Maharashtra
Tamil Nadu
Andhra Pradesh
Telangana
Gujarat
Karnataka

Industry Contacts

Posters

List of 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.