Indian Engineering Industry
Engineering sector is one of the fastest growing sectors of Indian industry. Increasing industrialization and economic development is further expected to drive capital goods & engineering market. With 100 per cent FDI allowed through the automatic route, major international players such as Cummins, ABB and Alfa Laval have entered the Indian engineering sector due to growth opportunities. Entry of new players has raised the industry’s competitiveness. This Rising competition is driving domestic players to focus on improving their capabilities, become more quality conscious, and upgrade their technology base in line with global requirements .More than 2,500 firms in the engineering sector have ISO 9000 accreditation. Companies are increasingly focusing on R&D and product development. Engineering research and development revenues are projected to reach USD 45 billion in 2020 from USD 17 billion in 2014. While, capital goods & engineering turnover is expected to reach USD 125.4 billion by 2017 from USD 57.6 billion in 2012.
Transport equipment, which includes Auto & auto component including Aircraft and ship boats, is the leading contributor to engineering exports. The segment accounted for 34.5 per cent of the total engineering exports in 2015. Iron & Steel and products made of Iron & Steel have accounted around 22.9 per cent market share while industrial machinery including electrical machinery accounted 21.9 per cent of the total engineering exports in 2015. Others commodities includes Medical and Scientific instruments, Hand tools & Cutting tools, Bicycle parts, Office equipments, Prime Mica & Mica Products etc. accounted 8.7 per cent of the total engineering exports in 2015.
Highlights of Indian engineering Industry
- Indian engineering exports stood at USD 70.6 billion in the Fiscal Year 2015.
- Exports have registered a CAGR of 11.1 per cent over the year 2008–2015, while 14.6 per cent growth is registered in 2014-15.
- Exports majorly include transport equipment, capital goods, other machinery/equipment and light engineering products such as castings, forgings and fasteners.
- Engineering sector in India is a highly organized sector which is dominated by large players employing over four million skilled and semi-skilled labour.