Overview

India holds a fair advantage in production and conversion costs in steel and alumina. Its strategic location enables export opportunities to develop as well as fast-developing Asian markets. As of FY21, the number of reporting mines in India were estimated at 1,229, of which reporting mines for metallic minerals were estimated at 545 and non-metallic minerals at 684.

Market Size

Turnover of the capital goods industry was estimated at US$ 92.00 billion in 2019 and is forecast to reach US$ 115.17 billion by 2025.India exports engineering goods mostly to US and Europe, which account for over 60% of the total export. Engineering exports were recorded at US$ 75.90 billion in April (FY20) and reached US$ 60.25 billion in January (FY21). The Index of Industrial Production (IIP) for the electrical equipment industry stood at 92.0 in FY21. The Index of Industrial Production (IIP) for the electrical equipment industry stood at 127.9 in September 2021.In FY22 (until October), India exported engineering goods worth US$ 63.89 billion compared with the US$ 39.97 billion recorded in FY21 (until October). In October 2021, exports of engineering goods from India stood at US$ 9.4 billion, a 50.89% increase from October 2020.

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$ 36 billion in FY19 to US$ 42 billion by FY22. India needs Rs. 235 trillion (US$ 3.36 trillion) of investment in infrastructure in the next decade (2020 29). The export of engineering goods is expected to reach US$ 200 billion by 2030.