India's engineering exports have seen steady growth over the past decade, with transport equipment such as automobiles and aircraft being the leading contributor in FY2016. Industrial machinery including electrical machinery accounted for around 24.8% of total engineering exports. The World Bank signed an agreement in 2017 to provide $201.5 million to develop infrastructure for quality engineering education across Indian states. Cumulative foreign direct investment in the engineering sector from 2000 to 2017 was $3.31 billion. The Indian government has implemented policies to liberalize the engineering sector and encourage manufacturing, including 100% FDI and reduced customs duties.

1. ENGINEERING
INDUSTRY
GROWTH OF
IN INDIA

2. EXPORT
S

3. In FY16, Transport equipment (which includes
Auto & auto component, including Aircraft and
ships/boats) is the leading contributor to
engineering exports.
Exports of iron & steel products accounted
for a market share of around 19.8%, while
industrial machinery including electrical
machinery accounted for 24.8% of
the total engineering exports.
Key Categories of Engineering Export

4. Total Engineering Export for 2016 (sector-wise)

5. As can be seen from this chart, India’s engineering export has seen
a steady increase over the past decade.

6. INVESTMENT
S

7. In February 2017, the World Bank signed an agreement
with the Government of India, for providing a loan of USD
201.5 million, for facilitating development of infrastructure
to impart quality engineering education across various
states in India.
Key Investments in Engineering
In April 2017, Government of India divested 10% stake
in the National Aluminium Company (NALCO) for the
cost of US $193.37 million.
Cumulative FDI into the miscellaneous and engineering
sector (from April 2000 to March 2017) stood at US $ 3.31
billion.
OVER THE PAST DECADE

8. POLICY

9. De-licensed engineering sector;
100% FDI permitted.
Basic customs duty was reduced from 10% to 5% on
forged steel rings using in wind operated electricity
generators.
The central government has approved the policy giving
preference to domestically produced steel and iron
products from May 2017.
FDI
Custom
s
Make in India
Favourable Changes in
Policy

10. Slidedeck developed by
Chanderpur Group
CPG is a leading provider of
manufacturing equipment. For
more information visit our
website:
www.chanderpur.com
Information as provided on IBEF.