Snapshot

Building India of tomorrow

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. 

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

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.

  •  By 2022, the Electrical equipment industry, comprising generation and T&D equipment, is targeted to reach a size of $100 bn
  •  By 2022, 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

  • %

    Share in manufacturing

  • mn

    Direct employment

  • %

    T&D equipment demand

  • $ bn

    Electrical machinery exports

A

Direct and indirect employment expected to reach 5 mn and 25 mn, respectively by 2025

B

Indian generation and T&D equipment market to reach $ 100 bn by 2022

C

Indian Electrical equipment is the largest sub-sector followed by Plant equipment & Earth moving/ mining machinery

Industry Scenario

The Capital Goods in India has a market size of $ 43.2 bn.

The industry is divided into 10 sub-sectors where Electrical equipment is the largest sub-sector followed by Plant equipment, and Earthmoving/ Mining machinery. The market size of each of the sub-sectors are as follows:

  • Heavy electrical equipment: $ 24.2 bn
  • Process plant equipment: $ 3.7 bn
  • Earth-moving and mining machinery: $ 3.3 bn
  • Printing machinery: $ 3.01 bn
  • Food processing machinery: $ 2.4 bn
  • Dies, moulds and press tools: $ 2.3 bn
  • Textile machinery: $ 1.8 bn
  • Machine tools: $ 1.4 bn
  • Plastic machinery: $ 0.5 bn
  • Metallurgical machinery: $ 0.4 bn

GROWTH DRIVERS

  • Ageing equipment requires auto replacement

    Opportunity for Transmission & Distribution (T&D) sector

  • Huge market potential

    Target industry size of $ 100 bn by 2022

  • The potential for closing import-export gap

    The Capital Goods imports to India is approximately 3X the exports

  • Massive power capacity addition in future

    Infrastructure, Power, Mining, Oil & Gas, Steel & Automotive

  • Nuclear capacity expansion

    Significant business opportunity

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FAQ

Frequently
Asked Questions

Where are the forms for 'project import scheme' available?

The general information and related forms relating to application for seeking concessional rate of customs duty under ’Project Import’ Scheme can be found at the following link. 

 

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What is the capital goods skill council?

Department of Heavy Industry has been instrumental in setting up Capital Goods Skill Council. Through this organization National Skill Standards are being notified with the purpose of defining skill needs of the industry. This way training institutions will be able to impart skills which are valued by employers in Industry. The Council has been targeted to benefit 10 million people in this way. 

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What is the funding pattern under TAFP?

Department of Heavy Industry has been instrumental in setting up Capital Goods Skill Council. Through this organization National Skill Standards are being notified with the purpose of defining skill needs of the industry. This way training institutions will be able to impart skills which are valued by employers in Industry. The Council has been targeted to benefit 10 million people in this way. 

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What is Technology Acquisition Fund Programme (TAFP)?

TAFP will provide financial assistance to Indian capital goods industry to facilitate acquisition of strategic and relevant technologies and also development of technologies through contract route, in-house route or JV. 

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What is the capital goods policy 2016?

National Capital Goods Policy is envisaged to provide ecosystem for capital goods growth and ensuring sustained incentive for domestic manufacturers to service domestic as well as export market demand. 

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