The engineering sector is the largest of the industrial sectors in India. It accounts for about 27% of the total factories in the country and represents 63% of the overall foreign collaborations. The engineering sector, being closely associated with the manufacturing and infrastructure sectors, is of strategic importance to India’s economy.
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 being made by its Engineering industries.
Engineering exports were US$ 75.90 billion in FY20 and reached US$ 39.90 billion in FY21 9(half yearly figures). Turnover of the capital goods industry was estimated at US$ 92.00 billion in FY20 and is forecast to reach US$ 115.17 billion by 2025.
Index of industrial production (IIP) for electrical equipment industry stood at 105.5 in FY20.
The Indian machine tool production and consumption were estimated at Rs. 6,150 crore (US$ 872.46 million) and Rs. 15,670 crore (US$ 2.22 billion), respectively, in 2020.
India ranked among the top 10 recipients of Foreign Direct Investment (FDI) in FY20 , attracting US$ 49 billion in inflows, a 16% increase from the previous year, driving the engineering sector further. India’s engineering R&D market will increase from US$ 36 billion in FY19 to US$ 42 billion by FY22.Industry Exports
India exports engineering goods mostly to US and Europe, which account for over 60% of the total export. Engineering exports were recorded at US$ 75.90 billion in April (FY20) and reached US$ 60.25 billion in January (FY21). The export of engineering goods is expected to reach US$ 200 billion by 2030.Industry Investments
FDI inflows for miscellaneous mechanical and engineering sectors stood at US$ 3,669.51 million between April 2000 and December 2020 according to the data released by Department for Promotion of Industry and Internal Trade (DPIIT).
India’s engineering R&D market will increase from US$ 36 billion in FY19 to US$ 42 billion by FY22.