Mechanical engineering in India
The machinery industry in India forms the backbone of the manufacturing sector by providing all the necessary equipment and machinery required for production in the country and has amply proved its potential to meet the huge demand for goods both at home and abroad. For instance, India is one of the largest exporters of machinery required for steel, mining, fertiliser, cement, petrochemical and other heavy engineering equipment.
Market statistics on the mechanical engineering sector in India
The Indian machinery market was valued at nearly $5.6 billion in 2021 and is expected to reach nearly $9.4 billion by 2027.
Production for the construction industry is expected to grow at an average annual rate of 7.1%.
India's textile and apparel industry will be worth more than $152 billion by 2021, accounting for 14% of the country's industrial output.
With an annual growth rate of about 12%, the Indian textile industry is expected to reach a value of $225 billion by 2025. To meet the growing demand, this industry is always looking for high quality machinery.
India is preferred by global manufacturing companies as an outsource destination because of its low cost, favorable investment conditions and large supply of engineers and other design personnel.
The electrical machinery industry has now been exempted from earlier mandatory licensing and this market has simultaneously been opened up by the government for 100% Foreign Direct Investment (FDI). This has eased the entry of large global players into the electrical machinery industry in India.
Covid-19 impact
The imposed lockdown due to the sudden outbreak of the COVID-19 pandemic has slowed the growth of the Indian machinery market in 2020 and 2021. Sectors that are the largest consumers of machinery in India, such as textiles and automobiles, were completely shut down. The shutdown of consumer sectors had a negative impact on the development of the machinery market in India. The market is now rapidly recovering from the negative impact of the pandemic and this is visible in the steady growth the sector is showing. Revenue growth of 11.2% is expected for 2023.
Growth drivers of mechanical engineering sector in India
India is shifting toward more automated and process-driven manufacturing, increasing the demand for high-performance equipment and machinery.
End users, such as aerospace/defense, automotive and information and communications technology, are the source of demand for more high-end equipment and machinery.
The agricultural machinery industry needs tillage machinery, tractors, power tillers and engines, processing machinery, crop protection machinery, irrigation and drainage equipment and milling equipment.
The government helps farmers, by providing special loans, to purchase agricultural machinery to increase their yields and thus also stimulates the demand for machinery.
The textile machinery industry in India is the second largest in the world. Manufacturers are increasingly using advanced textile machinery to meet the increasing demand in the global market.
Key players in the machinery market in India
National machine manufacturers in India
Voltas
Telco Construction Equipment
Bharat Earthmovers
B G Shirke Construction Equipment
Terex Vectra Equipment Salgaocar Engineers
Volvo Construction Equipment India
Larsen & Toubro
Ingersoll Rand India
Escorts Construction Equipment
International machine builders in India
JCB India
Metso Minerals
Atlas Copco
Trane Technologies
Interesting investment opportunities
Storage and processing equipment
Technical systems
Industrial trucks
Processing of bulk material
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