India, on its quest to become a global superpower, has made significant strides towards developing its engineering sector. The Government has appointed Engineering Export Promotion Council (EEPC) as the apex body in charge of promotion of engineering goods, products, and services from India. India exports transport equipment, capital goods, other machinery/equipment, and light engineering products such as castings, forgings, and fasteners to various countries of the world. The Indian semiconductor industry offers a high growth potential area because industries which source semiconductors as inputs are witnessing high demand.
India’s Capital Goods manufacturing industry serves as a strong base for its engagement across sectors such as Engineering, Construction, Infrastructure and Consumer goods, amongst others. It accounts for 27% of the total factories in the industrial sector and represents 63% of the overall foreign collaborations. Capital Goods sector contributes to 12% of India’s manufacturing output and 1.8% to GDP. Market valuation of the capital goods industry was US$ 43.2 billion in FY22.
Indian Electrical equipment is the largest sub-sector followed by Plant equipment & Earth moving/ mining machinery. The electrical equipment market share in India is expected to increase by US$ 33.74 billion from 2021 to 2025, and the market's growth momentum will accelerate at a CAGR of 9%.
Investment in engineering R&D sector is expected to reach US$ 63 billion by 2025.
The Index of Industrial Production (IIP), in absolute terms, increased to 144.7 in December 2022 from 137.4 in November 2022.
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.
In November 2022, exports of engineering goods from India stood at US$ 8.07 billion. In last fiscal year, India exported engineering goods worth US$ 112.10 billion. Cumulative engineering exports from April-November 2022 stood at US$ 70.72 billion.
In FY23, the exports of engineering goods from India have been estimated to stand at US$ 107.04 billion.
Market size for the Indian Construction Equipment Market stood at US$ 5.2 billion in FY22 and is forecasted to grow at a CAGR of 8.9% to reach US$ 8.7 billion by 2028. The construction equipment industry is expected to sell 165,097 units by 2028.
The overall exports of electronics goods in April-December 2021 stood at US$ 11.11 billion and grew 49% as compared to FY20 with the US and the UAE being the top two destinations.
The Ministry of Heavy Industries (MHI) launched two Production Linked Incentive (PLI) Schemes, namely PLI Scheme for Automobile and Auto Component Industry, and PLI Scheme for National Programme on Advanced Chemistry Cell (ACC) Battery Storage. The PLI Scheme for the automobile and auto components industry has been launched with a total budgetary outlay of Rs. 25,938 crore (US$ 3.17 billion) for a period of five years (FY23 to FY27).
In February 2021, the government had introduced the PLI scheme for manufacturing of telecom and networking equipment with an outlay of Rs. 12,195 crore (US$ 1.4 billion) over a five-year period.
The Indian machine tool market size reached US$ 1.4 billion in 2022.The market is expected to reach US$ 2.5 billion by 2028, exhibiting a growth rate (CAGR) of 9.4% during 2023-28. The manufacturers of machine tools are mostly SMEs, few of them are mid-sized manufacturers which have an annual turnover varying between Rs. 300-500 crore. The types of machine tools currently manufactured are general/special purpose machines, standard Computer Numerical Control (CNC) machines, gear cutting, grinding, medium size machines, electrical discharge machining (EDM), presses, press brakes, pipe bending, rolling, bending machines, etc.
Major textile machineries include weaving machines, spinning machines, winding machines, processing machines, synthetic fibre machines, etc. The Indian textile machinery industry was expected to touch US$ 6 billion mark by 2022.
India’s textile machinery exports registered a growth of 21.4% to US$ 762.15 million in the first nine months of 2022. In 2020, creation of National Technical Textiles Mission for a period of four years (2020-21 to 2023-24) was approved with an outlay of US$ 179 million for developing usage of technical textiles in various flagship missions, programmes of the country including strategic sectors.
Cement manufacturing machines include raw mill, cement crusher, cement mill, cement kiln, cement cooler, cement dryer, cement silo, cement packer, etc. Currently, 100% FDI is allowed under the automatic route.
India material handling equipment market share is anticipated to grow significantly from 2017-2024 due to an attractive economic landscape, and significant demand for goods movement. Material handling equipment have four categories: storage and handling equipment, engineered systems, industrial trucks and bulk material handling. The Indian material handling equipment sector has grown at a CAGR of 10% between 2016-2020.
The market size of plastic machinery sector stood at US$ 500 million. Demand for plastic processing machinery is expected to increase from 12,760 units in FY20E to 13,740 units in FY21P and 14,770 units in FY22P. Out of the total machinery demand in 2020-21P, injection molding machinery is expected to comprise 10,000 units, extrusion machines 2,770 units, and blow molding machines 970 units.
Indian foundries are expected to grow at a compound annual growth rate of about 12.5% from 2018 until 2023. There are in excess of 5,000 foundries in India of which about 85% are small units, 10% are medium sized and 5% are large, organized foundries. Foundry industry has a turnover of approx. US$ 19 billion with export approx. US$ 3.1 billion. India is the second largest producer of castings globally.
There are 750–800 domestic Medical Devices manufacturers in India, with an average investment of US$ 2.3–2.7 million and an average turnover of US$ 6.2-6.9 million. India is the 4th largest market for medical devices in Asia, among the top 20 markets for medical devices worldwide. India’s expected export of medical devices will reach ~ US$ 10 billion by 2025.
The Indian industrial fasteners market is expected to reach a value of Rs. 460 billion by 2023 expanding at a CAGR of ~9.6% from 2018. The Indian automotive sector is expected to be the largest consumer of industrial fasteners, accounting for a major share of the market by 2023.
India steam boiler systems market size is expected to reach nearly US$ 22.56 billion by 2027 with the CAGR of 4.63% during the forecast period. Indian boiler manufacturer industry is worth for a sum of US$ 146 million contributing 40% to the Indian economy. The Indian boiler industry is expected to grow at a rate of 6% to surpass US$ 194 million
The India generator sets market is expected to grow at a CAGR of more than 5% over the period of 2020-25. The current annual production capacity of domestic wind turbines is about 12000 MW. In 2022, GE Steam Power signed a US$ 165 million contract with Bharat Heavy Electricals Ltd to supply three nuclear steam turbines for India’s domestic nuclear power programme. In FY21, production of turbines (steam, hydro) stood at Rs. 2,949.32 crore (US$ 369.24 million). The India diesel gensets (generator sets) market is expected to reach US$ 2.78 billion by 2030 compared to US$ 1.48 billion by 2022 at a CAGR of 8.20%.
The India power transformer market Is expected to rise at a CAGR of more than 3% during the forecast period of 2020-25. Factors such as increasing power generation capacity to meet energy demand and expansion of transmission and distribution systems are likely to drive the India power transformer market. A whole range of power and distribution transformers, including a special type of transformer required for furnaces, electric tracts and rectifiers, are manufactured in India.
Indian switchgear market is projected to grow at a CAGR of over 15% through 2023, on account of rising development across residential, commercial and industrial end use sectors.
India’s automotive industry is worth more than US$ 222 billion and contributes 8% of the country’s total export and accounts for 7.1% of India's GDP and is set to become the 3rd largest in the world by 2030. Export of total number of automobiles increased from 4.1 million in 2020-21 to 5.6 million in 2021-22, registering a positive growth of 35.9%. India’s annual production of automobiles in FY22 was 22.93 million vehicles. In FY22, total passenger vehicle sales reached 3.07 million. Export of the total number of automobiles stood at 4.7 million in FY23. The exports of passenger vehicles increased from 5.7 million units in FY22 to 6.6 million units in FY23.
Indian auto components industry, which accounts for 2.3% of India’s GDP currently, is set to become the third largest globally by 2025. Indian auto components industry witnessed a 34.8 per cent growth to Rs 2.65 lakh crore (US$ 31.9 billion) in first-half of 2022-23, riding on domestic demand, particularly from the passenger vehicles segment. During the first half of 2022-23, exports of components grew by 8.6 per cent to US$ 10.1 billion. According to the Automotive Component Manufacturers Association of India, the auto-components industry of India is expected to grow by 10-15% in FY24, which would be driven by both domestic and export market demand.
The Indian agricultural equipment market reached a value of Rs. 926 billion (US$ 11.1 billion) in 2021. The The India agricultural machinery market is segmented by type of tractors, equipment, irrigation machinery, harvesting machinery, and haying and forage machinery. India’s tractor exports increased by more than 72%, reaching US$ 1,025 million from April to December 2021. India's farm equipment market is likely to grow to US$ 18 billion by 2025.
Engineering accounts for about 25% of India’s total global exports in the goods sector and is one of the largest foreign exchange earners. In FY22, India exported engineering goods worth US$ 111.63 billion, a 45.51% YoY growth. Cumulative engineering exports for April-December 2022-23 stood at US$ 79.83 billion. In December 2022, exports of engineering goods from India stood at US$ 9.08 billion. India’s engineering goods are exported to key markets such as the US, Europe, and China. The value of shipments to the US, the top market for India’s engineering goods, stood at US$ 1.58 billion in December 2022. Engineering exports to China stood at US$ 233.2 million whereas to the European Union (EU) it stood at US$ 1.54 billion in December 2022. Export of engineering goods is expected to reach US$ 200 billion by 2030. The engineering industry in Gujarat reported exports worth US$ 25 billion contributing around 36% of the India’s engineering exports.
Creation of a significant number of special economic zones (SEZs) across the country has been approved. The development of Delhi Mumbai Industrial Corridor (DMIC) across seven states will further bolster the engineering sector. Reliance Defence and Engineering Ltd has signed an agreement with the US Navy for undertaking service, maintenance and repair of Seventh Fleet of US Navy at the Reliance Shipyard at Pipavav in Gujarat.
With 100% FDI allowed through the automatic route, major international players such as Cummins, GE, ABB and Alfa Laval have entered the Indian engineering sector due to growth opportunities. American plane maker Boeing Corporation has launched the Boeing India Engineering & Technology Centre in Bengaluru.
In February 2023, Reliance Industries Limited (RIL) and its vehicle partner Ashok Leyland unveiled India’s first Hydrogen Internal Combustion Engine (H2-ICE) technology solution for heavy duty trucks at the India Energy Week in Bengaluru.
State-run PSUs Nuclear Power Corporation of India Ltd (NPCIL) and Bharat Heavy Electricals Ltd (BHEL) have signed a memorandum of understanding (MoU) in April, 2023 to jointly pursue business opportunities in the area of Nuclear Power Plants based on Pressurized Heavy Water Reactor (PHWR) technology.
The Ministry of Heavy Industries, in March 2023, sanctioned Rs. 800 crore (US$ 97.3 million) under FAME India Scheme Phase-II to three PSU oil marketing companies (OMC) for setting up 7,432 public fast charging EV stations across the country.
Companies across this sector are partnering with technology providers to enhance their capabilities and sustain the market uncertainties. In November 2022, L&T Infotech and Mindtree merged to make India’s fifth-largest IT company, LTI Mindtree, that will help businesses proactively take on and shape the future by harnessing the full power of digital technologies.
In January 2023, Bharat Heavy Electricals Ltd (BHEL) bagged the order for renovation and modernization of 200 MW Unit-3 and 210 MW Unit-5 steam turbines at Ukai thermal power station in Gujarat. ABB India ABB can utilize around Rs. 1,800 crore (US$ 217.2 million) of its cash balance for inorganic growth or acquisitions apart from organic expansion plan.
Making process changes — including the adjustment of a company’s physical footprint, outsourcing or offshoring of particular processes, changes to organizational structure — can help increase efficiency. Strong analytical capacity will allow companies to slice and dice their operational data, identifying opportunities to make operations more efficient — such as workforce planning.
In January 2023, L&T Technology Services Limited announced to acquire the Smart World & Communication (SWC) Business of L&T, to combine synergies and take offerings in Next-Gen Communications, Sustainable Spaces and Cybersecurity to the global market.
In 2021, the government is pursuing strategic sale in 22 PSU firms of which 17 are ongoing transactions including BPCL, Shipping Corporation of India, Concor and BEML.
To increase the employability of engineering graduates in the country, AICTE (All India council of Technical education) leadership is taking a lot of efforts and recommends model curriculum for engineering programs like AI, IoT, Robotics, Block chain, Machine learning, Data Science and Cyber security. 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 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. 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.
In Budget 2023-24, Ministry of Railways received its highest-ever allocation of Rs. 2.4 lakh crore (US$ 28.9 billion), approximately nine times the allocation in 2013-14. In budget 2023-24, Ministry of Road Transport and Highways saw a 36% increase in its budget to about Rs. 2.7 lakh crore (US$ 32.5 billion). The government launched the National Infrastructure Pipeline (NIP) with a forward-looking approach and with a projected infrastructure investment of around Rs. 111 lakh crore (US$ 1.3 trillion), during FY20-25 to provide high quality infrastructure across the country. The NIP currently has 8,964 projects with a total investment of more than Rs. 108 lakh crore (US$ 1.3 trillion) under different stages of implementation. Increase in the construction of National Highways (NHs)/roads over time, with 10,993 km of roads constructed in FY23 as compared to 6,061 km in FY16. Total budgetary support for investment in the sector has been increasing rapidly in the last four years and stood at around Rs. 1.4 lakh crore (US$ 16.8 billion) during FY23 (as of 31 October, 2022). In line with the vision of monetization of public sector assets, National Highways Authority of India (NHAI) launched its InvIT in FY22. NHAI InvIT has raised more than Rs. 10,200 crore (US$ 1.2 billion) from high quality foreign and Indian institutional investors (up to December 2022).
India has one of the largest road networks (5.48 million kms) comprising expressways, national, state highways, district and village roads. India plans to spend US$ 1.4 trillion on infrastructure between 2019 to 2023 which is predicted to boost the expansive growth of the sector. India’s national highway network grew by nearly 48% from 97,830 km in 2014-15 to 144,634 km at the end of November, 2022. The pace increased from 12.1 km a day in 2014-15 to 28.6 km per day in FY22. The ministry of road transport and highway planned to construct around 28,391 km of highways in 25 months at a daily average of around 38 km, starting from March 2022 to the end of the financial year 2023-24. Increasing construction of roads and highways all over the country as a source of development in the state is further responsible for the future growth of the India construction market in the upcoming five years. The Infrastructure Supporting Industries Index (part of the wider Index of Industrial Production) comprises eight core industries, such as coal, crude oil, natural gas, petroleum refinery products, fertilisers, steel, cement and electricity. This index stood at 142.8 in FY23*.
Shri Dharmendra Pradhan, Minister of Skill Development and Entrepreneurship and Education, said growth of capital goods sector is correlated to the success of Make in India program.
The government approved 15 SEZs for the engineering sector, & electrical machinery is a part of the sector. The Delhi Mumbai Industrial Corridor (DMIC) is being developed across 7 states and is expected to bolster the sector.
Top infra projects that are underway includes Chenab Bridge, Delhi Mumbai Expressway, Central Vista, Eastern Dedicated Freight Corridor, Mumbai Nagpur Expressway, Kochi Water Metro.
In Budget 2023, customs duty exemption is being provided to import of specified capital goods and machinery required for manufacture of lithium-ion cells for batteries used in electric vehicles and mobile handsets.
The electrical machinery industry has been de-licensed, along with 100% FDI allowed in this sector. This has facilitated the entry of major global players into the electrical machinery industry in India
Under the Union Budget 2023-24, Government has committed an outlay of Rs. 10 lakh crore (US$ 120 billion) towards infrastructure capital expenditure compared to Rs. 7.5 lakh crore (US$ 90 billion) (BE) during 2022–23, which is a 33% year-on-year increase.
Under Union Budget 2023-24, defence sector has been allocated a budget of Rs. 5.94 lakh crore ($72 billion).
In February 2022, the Prime Minister inaugurated Asia’s largest bio-CNG plant set up under the Indore Smart City Project.
Voluntary Vehicle-Fleet Modernisation Programme (VVMP)- The objectives of the policy are to reduce population of old and defective vehicles, achieve reduction in vehicular air pollutants to fulfil India’s climate commitments, improve road and vehicular safety, achieve better fuel efficiency, formalize the currently informal vehicle scrapping industry and boost availability of low-cost raw materials for automotive, steel and electronics industry. The policy will bring in investments of Rs. 10,000 crore (US$ 1.35 billion) to set up 450-500 Automated Testing Stations (ATS) and 60-70 Registered Vehicle Scrapping Facilities (RVSF) across the country. The policy has proposed to push 28 million decade old vehicles off the roads.
New export policy in Uttar Pradesh–- Export policy is being established for the State of Uttar Pradesh to tap onto opportunities in international market, optimum utilization of the resources of the state, employment generation and to synergize with the Foreign Trade Policy 2020-25. The objective of this policy is to promote development and competition in the field of exports, to provide necessary export-related assistance and services to export ancillary institutions, to establish and develop technical and physical infrastructure to increase exports from the state.
Total foreign direct investment (FDI) inflow to India stood at US$ 81.97 billion in the financial year 2020-2021. FDI inflow for miscellaneous mechanical and engineering industries stood at US$ 4.18 billion between April 2000-December 2022. FDI inflow depends on a host of factors such as availability of natural resource, market size, infrastructure, political and general investment climate as well as macro-economic stability and investment decision of foreign investors. The Government reviews the FDI policy on an ongoing basis and makes significant changes from time to time, to ensure that India remains attractive and investor friendly destination. To further liberalize and simplify FDI policy for providing Ease of doing business and attract investments, reforms have been undertaken recently across sectors such as Coal Mining, Contract Manufacturing, Digital Media, Single Brand Retail Trading, Civil Aviation, Defence, Insurance and Telecom.
Defence sector–- Under Union Budget 2023-24, defence sector has been allocated a budget of Rs. 5.94 lakh crore (US$ 72 billion). In 2023, Defence Minister of India has called upon Indian and global industry leaders to support the government’s endeavour to design, develop and manufacture cutting-edge products, using critical technologies within India to attain complete ‘Aatmanirbharta’ in defence. The vision of the government is to achieve a turnover of US$ 25 billion including export of US$ 5 billion in Aerospace and Defence goods and services by 2025. Ministry of Defence has also notified three 'Positive Indigenisation lists' comprising of 310 defence equipment to be manufactured locally. With the notification of 164 additional items, the total number of indigenised items till December 2022 from 'Positive Indigenisation Lists' of the Department of Defence Production DDP stands at 2,736, worth an import substitution value of Rs. 2,570 crore (US$ 312.5 million). The government has also announced two dedicated Defence Industrial Corridors in the States of Tamil Nadu and Uttar Pradesh to act as clusters of defence manufacturing that leverage existing infrastructure, and human capital.
Auto components - According to the Automotive Component Manufacturers Association of India, India’s auto component industry is projected to grow 10-15% annually till FY24. In December 2022, Spark Minda inaugurated 28th automotive component manufacturing plant in India. In December 2022, Honda Cars India has announced a tie-up with Maruti Suzuki Toyotsu India (MSTI), to offer vehicle scrapping services to its customers through its dealer network. In November 2022, ARAI, Ansys signs MOU for research in emerging automotive technologies. PLI schemes in automobile and auto component sector with financial outlay of Rs. 25,938 crore (US$ 3.49 billion) introduced under Atmanirbhar Bharat 3.0.
Civil nuclear sector - India’s installed nuclear power capacity of 6,780 MW will increase to 22,480 MW by 2031 on progressive completion of projects under construction and accorded sanction. India will triple its present installed nuclear power generation capacity in the next 10 years.
Machine tools - The Indian machine tools market size reached US$ 1.4 billion in 2022 and is expected to reach US$ 2.5 billion by 2028, exhibiting a growth rate (CAGR) of 9.4% during 2023-28. The growing prominence of automation across numerous manufacturing processes, to enhance their productivity and meet quality standards, is currently driving the India machine tools market.
Material handling equipment - The Indian automated material handling (AMH) market was valued at US$ 1353.8 million in 2020 and is expected to go up to US$ 2739.34 million by 2026 at a CAGR of 12.7%. The Indian material handling sector has observed a momentous growth in recent years due to rising investment in infrastructure development, increased demand for higher automation, and safe working practices in the manufacturing area.
The electrical equipment market share in India is expected to increase by US$ 33.74 billion from 2021 to 2025 at a CAGR of 9%. Domestic electrical equipment market is expected to grow at an annual rate of 12% to reach US$ 72 billion by 2025. In FY21, India’s heavy electrical equipment production stood at Rs. 168,949 crore (US$ 21.15 billion). Production of generation equipment (boilers, turbines and generators) in India is estimated to be around US$ 5.7 billion by 2022. The electrical machinery/equipment segment grew nearly 90% with shipments jumping to Rs. 13,606 crore (US$ 1.6 billion) in the April-July 2022 from Rs. 7,202 crore (US$ 869 million) in the year-ago period.
India’s construction equipment market size is estimated to reach US$ 8.7 billion by 2028 from US$ 5.2 billion in 2022, growing at a CAGR of over 8% on account of anticipated growth in construction industry, increasing foreign investments, and rising number of smart city projects in the country. In FY22, the construction equipment industry sold 85,385 units. Demand for Indian manufactured construction equipment also remains robust globally, with exports witnessing a growth of 60% YoY in FY22. The earthmoving equipment and road construction equipment account for close to 70% of India’s construction equipment market. The demand outlook for the construction equipment sector remains robust with Ministry of Road Transport & Highways targeting 18,000 km of national highway construction in FY22-23 at a pace of 50 km per day and expanding the national highway network to two lakh km by 2025.
In FY22, India exported engineering goods worth US$ 111.63 billion, a 45.51% increase YoY. India exports engineering goods mostly to US and Europe, which account for over 60% of the total exports.
In FY21, India’s heavy electrical equipment production stood at Rs. 168,949 crore (US$ 21.15 billion). The electrical equipment market is forecasted to grow at 12% CAGR to reach US$ 72 billion by 2025 from US$ 48-50 billion in 2021. Export of electrical machinery and equipment stood at US$ 10.37 billion in FY22, which was a 27.6% YoY growth.
Market size of textile machinery stood at Rs. 35,000 crore (US$ 5.4 billion) in 2021. The domestic production of the industry stood at Rs. 5,093 crore (US$ 637.62 million) in FY21. Textile industry exports stood at Rs. 3,307 crore in FY21, as against Rs. 2,556 crore achieved during FY20.
In FY22, the construction equipment industry sold 85,385 units.
100% FDI is allowed through the automatic route, with major international players looking for growth opportunities to enter the Indian engineering sector. The engineering sector in India attracts immense interest from foreign players as it enjoys a comparative advantage in terms of manufacturing cost, technology, and innovation. The above, coupled with favourable regulatory policies and growth in the manufacturing sector, has allowed several foreign players to invest in India.
FDI inflow for miscellaneous mechanical and engineering industries stood at US$ 4.18 billion between April 2000-December 2022 according to the data released by the Department for Promotion of Industry and Internal Trade (DPIIT).
Microsoft India and Larsen & Toubro (L&T) have signed a Memorandum of Understanding (MoU) to build a regulated sector cloud product. The two businesses will collaborate with a select group of significant customers in regulated industries to design architectures and roadmaps to help them achieve their digital transformation goals and transition traditional datacenters to hybrid cloud architecture.
Tesla, the electric car maker, has set up a R&D centre in Bengaluru and registered its subsidiary as Tesla India Motors and Energy Private Limited.
With the aim to boost the manufacturing sector, the government has relaxed the excise duties on factory gate tax, capital goods, consumer durables and vehicles.
To increase the employability of engineering graduates in the country, the Ministry of Human Resource Development is working along with Sector Skill Councils (SSCs) under National Skill Development Corporation (NSDC) to undertake apprenticeship/internship embedded degree programmes with a core focus on the development of knowledge, skills, aptitude and on-job training.
The AICTE has entered into collaborations with the MSME ministry, NHAI and DM offices in 150 districts to facilitate engineering internships for students.
In the Union Budget 2022-23, the government has given a massive push to the infrastructure sector by allocating Rs. 199,107 crore (US$ 26.52 billion) to enhance the transport infrastructure.
The government expanded the ‘National Infrastructure Pipeline (NIP)’ to 9,318 projects worth US$ 2.23 trillion. As of February 2022, there are 2,465 projects under development.
Prime Minister Mr. Narendra Modi, on the country's 75th Independence Day, announced plans to invest Rs. 100 trillion (US$ 1.35 trillion) in infrastructure to stimulate economic development and generate employment.
The government has announced its PLI scheme of Rs. 10,683 crore (US$ 1.4 billion) for textiles, specifically aimed at boosting production of man-made fibre (MMF) fabric, MMF apparel and technical textiles. The government has also announced a PLI scheme for automobiles and auto components worth Rs. 25,938 crore (US$ 3.49 billion). This scheme is expected to bring investments of Rs. 42,500 (US$ 5.74 billion) by 2026.
According to the National Association of Software and Service Companies (Nasscom), India’s share in the global engineering and research and development (ER&D) market is likely to expand at a CAGR of 12-13% to reach US$ 63 billion by 2025.
By 2030, India has plans to invest US$ 34.2 billion to set up an interstate transmission network (ISTS) in order to evacuate renewable energy.
