Engineering Industry in India

Engineering goods exports constituted more than 27% share of India's total export basket between April-December 2021.

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.

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.

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.

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.

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Last updated: Apr, 2023

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.

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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.

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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.

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