Snapshot

Building India, for tomorrow

India’s Capital Goods manufacturing industry serves as a strong base for its engagement across sectors such as Engineering, Construction, Infrastructure and Consumer goods, amongst others. 

The leading export subsectors of the capital goods sector are heavy electrical and power equipment, earthmoving and mining machinery, and process plant equipment – together accounting for 85% of India's total capital goods exports.

To indigenize manufacturing capabilities in India, IIT Madras has launched the advanced manufacturing technology development center which is working with the capital goods industry, India on various aspects including the smart manufacturing platform for production processes.

  • Target Production size of capital goods will be $ 112 Bn by 2025. 
  • By 2025, the Electrical equipment industry, comprising generation and T&D equipment, is targeted to reach a size of $100 Bn.
  • By 2025, the T&D equipment segment is targeted to reach a size of $75 Bn.

100% FDI is allowed under the automatic route.

For further details, please refer FDI Policy

  • %

    Targeted Contribution to manufacturing sector

  • Mn

    Direct employment

  • %

    T&D equipment demand

Direct and indirect employment expected to reach 5 Mn and 25 Mn, respectively by 2025.

India was the world’s 8th largest consumer of machine tools globally, as of 2021

Indian Electrical equipment is the largest sub-sector followed by Plant equipment & Earth moving/ mining machinery.

Industry Scenario

The order book for the capital goods sector increased by 9% in the first half of this fiscal to INR 3.9 Tn, and about 14% Year-on-Year (YoY) in FY22.

The capital goods industry is divided into 10 sub-sectors where Electrical equipment is the largest sub-sector followed by Plant equipment, and Earthmoving/ Mining machinery. These sub-sectors are as follows:

  • Heavy electrical equipment
  • Process plant equipment
  • Earth-moving and mining machinery
  • Printing machinery
  • Food processing machinery
  • Dies, Moulds and press tools
  • Textile machinery
  • Machine tools
  • Plastic machinery
  • Metallurgical machinery

GROWTH DRIVERS

  • Ageing equipment requires auto replacement

    Opportunity for Transmission & Distribution (T&D) sector

  • The potential for closing import-export gap

    The Capital Goods imports to India is approximately 3X the exports

  • Massive power capacity addition in future

    Infrastructure, Power, Mining, Oil & Gas, Steel & Automotive

  • Nuclear capacity expansion

    Significant business opportunity

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    FAQs

    Frequently
    Asked Questions

    Where are the forms for 'project import scheme' available?

    The general information and related forms relating to application for seeking concessional rate of customs duty under ’ Project Import. ’

     

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    What is the capital goods skill council?

    Department of Heavy Industry has been instrumental in setting up Capital Goods Skill Council. Through this organization National Skill Standards are being notified with the purpose of defining skill needs of the industry. This way training institutions will be able to impart skills which are valued by employers in Industry. The Council has been targeted to benefit 10 million people in this way. 

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    What is the funding pattern under TAFP?

    Department of Heavy Industry has been instrumental in setting up Capital Goods Skill Council. Through this organization National Skill Standards are being notified with the purpose of defining skill needs of the industry. This way training institutions will be able to impart skills which are valued by employers in Industry. The Council has been targeted to benefit 10 million people in this way. 

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    What is Technology Acquisition Fund Programme (TAFP)?

    TAFP will provide financial assistance to Indian capital goods industry to facilitate acquisition of strategic and relevant technologies and also development of technologies through contract route, in-house route or JV. 

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    What is the capital goods policy 2016?

    National Capital Goods Policy is envisaged to provide ecosystem for capital goods growth and ensuring sustained incentive for domestic manufacturers to service domestic as well as export market demand. 

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