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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.
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.
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 capital goods will be $ 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
- %
Share in manufacturing
- mn
Direct employment
- %
T&D equipment demand
- %
Electrical machinery exports share (July 2022)
Direct and indirect employment expected to reach 5 mn and 25 mn, respectively by 2025
Indian generation and T&D equipment market to reach $ 100 bn by 2022
Indian Electrical equipment is the largest sub-sector followed by Plant equipment & Earth moving/ mining machinery
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Industry Scenario
The Capital Goods in India has a market size of $ 43.2 bn.
The capital goods 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
Exports of Engineering goods values at $ 7,818.22 mn in September 2022 and shares highest with 23.96 % of the total exports of the month.
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
Industrial Land Bank Portal
GIS - based map displaying available infrastructure for setting up business operations in the state.
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Invest India closely works with
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Industry Scenario
- Agro & Food Processing Equipment; Technology Providers Association of India
- Engineering Export Promotion Council
- Indian Construction Equipment Manufactures' Association: ICEMA
- Indian Electrical and Electronics Manufacturers' Association
- Indian Machine Tools Manufacturers' Association
- Indian Printing, Packaging and Allied Machinery Manufacturers' Association
- Plastic Machinery Manufacturers Association of India
- Textile Machinery Manufacturers' Association
- Indian Machine Tool Manufacturers' Association | IMTMA
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