Capital Goods

Capital Goods, a US$43.2bn industry in India, covers several sub-sectors of the Indian engineering and construction space.

Last updated: November 5, 2021

The industry is dominated by heavy electrical and power plant equipment segment which constitutes 69% of aggregate output.

US$42bn

Projected value of Indian engineering R&D by 2022.

12%

Contribution to overall manufacturing in India

US$3.6bn

FDI inflow over the period April 2000 to June 2018.

60%

of engineering exports are to US and Europe.

18%

growth recorded in India's construction equipment industry in 2018-19.

5mn

direct and 25mn indirect jobs to be given by the Capital Goods sector in India by 2025.

US$115.2bn

turnover expected in the Indian capital goods industry by 2025..

Washington Accord

India is a member of WA, an elite international engineering group.

US$700bn

of investment planned by Government in infrastructure by 2022.

100%

FDI allowed in the engineering and construction sector.

Vision 2022 for Indian Electrical Equipment Industry

To make India the country of choice for the production of electrical equipment and reach an output of US$ 100 billion by balancing exports and imports.
National Capital Goods Policy 2016

The Capital Goods sector is a critical element to boost manufacturing activity in India.
National Manufacturing Policy

The National Manufacturing Policy envisaged manufacturing to contribute 25% to GDP and create 100 million jobs.

FAME II

The main objective of the scheme is to encourage faster adoption of electric and hybrid vehicle by way of offering upfront incentive on purchase of electric vehicles and also by way of establishing a necessary charging Infrastructure for electric vehicles. The scheme will help in addressing the issue of environmental pollution and fuel security.
Stimulus measures for Infrastructure, Capital Goods and Defence

An additional budget of US$ 3.4bn has been allocated for capital spending towards multiple sectors including Defence, Infrastructure and Capital Goods.

Electrical Equipment (Quality Control) Order 2020

The Order provides the stipulations that every electrical equipment produced must adhere to.

Department of Heavy Industry

011-23062365

Visit Website

The Department promotes engineering industry, heavy electrical, industrial machinery and auto industry.

All India Association of Industries

+91-22-2201-9265

Visit Website

AIAI is a premier industry association representing industries across sectors.

Department of Heavy Industry

investment opportunities

  • Creation of Research and Testing infrastructure through the National Automotive Testing and R&D Infrastructure Project (NATRIP).
  • India’s power generation, transmission and distribution sectors require technology and infrastructure to support 900 GW by generation capacity by 2032.
  • India's mining and resources sector presents new opportunities for private sectors on the back of favorable legislations.
  • The Smart City Mission aims to retrofit 100 urban centres across India with focus on mobility, low-cost housing and sewerage.
Useful Links:

key investors

India has a well-oiled enterprise promoting machinery that is backed by strong legislative, judiciary, executive and capital establishments

Ansaldo STS has interests in urban rail infrastructure projects in India.

Samsung Heavy Industries has energy and shipping projects in India.

Alstom is currently executing metro projects in several Indian cities.

Siemens focuses on electrification, automation and digitization in India.

Hitachi India operates in engineering, procurement and civil construction.

ENABLING ENVIRONMENT

India has a well-oiled enterprise promoting machinery that is backed by strong legislative, judiciary, executive, and capital establishments

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