INDIAN ENGINEERING INDUSTRY AT A GLANCE IN 2022 - 2023
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. FDI inflow for miscellaneous mechanical and engineering industries stood at US$ 4.10 billion in 2022.
• 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. Production of generation equipment (boilers, turbines and generators) in India was around US$ 5.7 billion in 2022. The electrical machinery/equipment segment grew nearly 90% with shipments jumping to Rs. 13,606 crore (US$ 1.6 billion) in 2022.
• The Indian textile machinery industry touched US$ 6 billion mark in 2022. India’s textile machinery exports registered a growth of 21.4% to US$ 762.15 million in 2022.
• The market size of Plastic machinery sector stood at US$ 0.5 billion.
• The market size of process plant equipment sector stood at US$ 3.7 billion.
• Foundry industry has a turnover of approx. US$ 19 billion with export approx. US$ 3.1 billion.
• 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.
• 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.
• 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.
• The India generator sets market is expected to grow at a CAGR of more than 5% over the period of 2020-2025.
• The India power transformer market is expected to rise at a CAGR of more than 3% during 2020-25.
• Indian switchgear market is projected to grow at a CAGR of over 15% through 2023.
• India’s automotive industry is worth more than US$ 222 billion, contributes 8% of the country’s total export, accounts for 7.1% of India's GDP and is set to become the 3rd largest in the world by 2030.
• Indian auto components industry, which accounts for 2.3% of India’s GDP currently, is set to become the 3rd largest globally by 2025.
• The Indian agricultural equipment market reached a value of Rs. 926 billion (US$ 11.1 billion) in the last financial year.
• 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 market size of high voltage switchgear (including panels) and low voltage switchgear (including panels) stood at Rs. 4,793 crore (US$ 679.95 million).
Engineering ExportsEngineering 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% increase YoY. India exports engineering goods mostly to US and Europe, which account for over 60% of the total exports.
In FY23, the US is the leading destination for India's engineering goods exports with total shipments value registering nearly 7 per cent year-on-year growth.
Engineering exports from India, after reaching their all-time high at $112.16 billion during fiscal 2021-22, finished fiscal 2022-23 at $107.04 billion conceding a decline of 4.57 per cent.