Aarvi Encon Limited Financial Overview
21 Engineering Industry
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 Rs 8.05 lakh crore (US$ 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.
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The Foreign Direct Investment (FDI) inflow into India's
miscellaneous mechanical and engineering industries between April
2000 and March 2020 stood at around US$ 3.63 billion, as per the
data released by Department for Promotion of Industry and Internal
Trade (DPIIT).
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 per cent
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 Rs 100 lakh crore (US$
1.43 trillion) in infrastructure sector over the next five years.
Road Ahead
Turnover of capital goods industry is expected to increase to US$
115.17 billion by 2025F. India's engineering R&D market will
increase from US$ 28 billion in FY18 to US$ 42 billion by FY22F.
India needs Rs 235 trillion (US$ 3.36 trillion) of investment in
infrastructure in the next decade.
The export of engineering goods is expected to reach US$ 200 billion
by 2030.View entire presentation