Engineering Services to Drive Growth
21 Engineering Industry
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India's engineering sector has witnessed a remarkable growth over the last
few years driven by increased investment in infrastructure and industrial
production. India, on its quest to become a global superpower, has made
significant stride towards developing its engineering sector. The Government
has appointed Engineering Export Promotion Council (EEPC) as the apex body
in charge of promotion of engineering goods, products, and services from
India.
The turnover of capital goods industry in India is expected to grow to INR 8.05
lakh crore (USD 115.17 Billion) by 2025.
Investments
The engineering sector in India attracts immense interest from foreign players
as it enjoys a comparative advantage in terms of manufacturing cost,
technology, and innovation. The above, coupled with favorable regulatory
policies and growth in the manufacturing sector, has enabled several foreign
players to invest in India.
India's engineering R&D market will increase from USD 36 Billion in FY19 to
USD 63 Billion by FY25. India needs INR 235 trillion (USD 3.36 trillion) worth of
investments in infrastructure by 2029.
Government Initiatives
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The Indian engineering sector is of strategic importance to the economy
owing to its intense integration with other industry segments. The sector has
been de-licensed and enjoys 100% FDI. With the aim to boost the
manufacturing sector, the Government has relaxed the excise duties on
factory gate tax, capital goods, consumer durables and vehicles.
Government has planned an investment of INR 100 lakh Crore (USD 1.43
trillion) in infrastructure sector over the next five years.
Road Ahead
Turnover of capital goods industry is expected to increase to USD 115.17
Billion by 2025F. The Indian staffing market is currently a USD 10 billion
industry, growing at 28% YoY. It is poised to become one of the largest by
2030. India needs INR 235 trillion (USD 3.36 trillion) of investment in
infrastructure in the next decade.
The export of engineering goods is expected to reach USD 200 billion by 2030.View entire presentation