Capital Goods

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. The capital goods industry in FY 2018 -19 had an overall production figure amounting to $13.6 bn. 

The leading export subsectors of the capital goods sector are heavy electrical and power equipment, earthmoving and mining machinery, and process plant equipment – together accounting for 85% of India's total capital goods exports.

To indigenize manufacturing capabilities in India, IIT Madras has launched the advanced manufacturing technology development center which is working with the capital goods industry, India on various aspects including the smart manufacturing platform for production processes.

Capital Goods industry in India provides approximately 1.4 mn direct and 7 mn indirect jobs.

Engineering Goods exports register a stupendous growth of 54% and jump to $ 81.8 Billion during April-December 2021 as compared to $ 52.9 Billion during same period in the previous year (2020)

Market-oriented reforms such as "Power for All" along with plans to add 93 GW by 2022 will generate huge demand for power transmission and distribution (T&D) equipment.

• Target Production size of $ 100 bn by 2025 
• Indian generation and T&D equipment market to reach $ 100 bn by 2025 
• By 2025, the Electrical equipment industry, comprising generation and T&D equipment, is targeted to reach a size of $100 bn 
• By 2025, the T&D equipment segment is targeted to reach a size of $75 bn 

100% FDI is allowed under the automatic route

For further details, please refer FDI Policy