The capital goods manufacturing sector facilitates engagement across sectors such as construction, engineering, infrastructure, consumer goods etc. Increasing demand has led to a notable growth in the capital goods sector of India. The industry contributed approximately $10.4 bn to exports in 2016-17. 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. 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:
Will changes in FDI norms lead to more employment??
Policy Watch - Review of FDI Policy - FDI India
India Received Highest-Ever FDI Of Over $64 Billion In 2018-19
Cabinet decisions: 100?I in contract manufacturing under automatic route
The Big Picture - Wooing FDI - FDI India