The capital goods manufacturing sector facilitates engagement across sectors such as construction, engineering, infrastructure, consumer goods etc. Increasing demand has led to notable growth in the capital goods sector of India. 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 5 mn direct employment.
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. India became a permanent member of the Washington Accord (WA) in June 2014. The country is now a part of an exclusive group of 17 countries who are permanent signatories of the WA, an elite international agreement on engineering studies and mobility of engineers.
100% FDI in capital goods sector is allowed under the automatic route.
Direct and indirect employment expected to reach 5 million and 25 million, respectively by 2025
Indian generation and T&D equipment market to reach $100 bn by 2022
Indian Electrical equipment is the largest sun-sector followed by Plant equipment & Earth moving/mining machinery
The Capital Goods in India has a market size of $43.2 bn. India is an attractive destination for FDI in capital goods sector.
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:
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