Being one of the largest sectors in India, the engineering sector can be broadly categorised into two parts, namely, heavy engineering and light engineering. India’s engineering industry accounts for 27 per cent of the total factories in the industrial sector, representing 63 per cent of the overall foreign collaborations. The total merchandise exports also comprise a large contribution from the engineering sector. Capacity creation in infrastructure, power, mining, oil and gas, refinery, steel and consumer durables are driving demand in the engineering sector. The sector bears a comparative advantage in terms of manufacturing costs, market knowledge, technology and creativity.
Rising competition is leading the domestic players to focus on improving their capabilities, becoming more quality-conscious and upgrading their technology base in line with global requirements. There are more than 2,500 firms with ISO 9000 certification in this sector. Engineering companies are striving to increase their global footprint. Availability of cheap labour is giving them an edge over companies in higher-wage economies. Besides targeting developed economies across Europe and North America, Indian companies are currently diversifying in the developing markets of Africa, South America and the Middle East.
Impressive Track Record
This story is from the September 26, 2022 edition of Dalal Street Investment Journal.
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This story is from the September 26, 2022 edition of Dalal Street Investment Journal.
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