One of the most progressive industries of the world, engineering represents pure sciences and is a mammoth of an industry making it a prime parameter of strategic growth of the country. Primarily focused on infrastructure and real estate, it dwells in to power, oil and gas, automotives and steel as well. Of the major domestic industry participants in heavy engineering, AIA Engineering leads the way with 33% of market share while McNally Bharat Engineering Co. Ltd. Is the top engineering company in India which has established itself in turnkey project execution. Expected to increase at a CAGR of 11.2%, the market size of the housing sector widely contributes to engineering growth rate graphs. The huge capital expenditures by the Government in terms of infrastructure bolsters the demand for good engineering in India. The Engineering Export Promotion Council has been set up to provide for, control and monitor operations in engineering as the apex body in charge of this industry, nationally. The country has witnessed a rise in manufacturing sectors and the recent favor in the industrial policy has further boosted this industry, giving it new shape since the last Plan that clocked a 14% industrial growth rate. This industry has a bearing on numerous user industries since it is a critical ingredient to these sectors. Observing the expertise needed in this industry, India was conferred permanent membership at the Washington Accord, an elite international caucus for uplifting education and mobility of engineers amongst member nations.
Both socialists and capitalists have realized what an investment in this industry could bring to India, which is why a combination of direct and indirect support from the Union and keeping growth in exports as the cynosure, India marked a double digit growth rate of 10.22 % in 2014 with $26.4 billion of exports which can be credited to demand for automobiles, aircraft and spacecraft parts. Much of this demand emerged from US and Europe. Looking at the vast potential in India and the growing need for securing a strong stand in engineering dedicated to infrastructure and aviation requirements, the country has attracted a good amount of foreign direct investment. The Reserve Bank of India notified 100% FDI through the automatic route thus further welcoming foreign participants in the construction sector. To add to it, India and USA signed an MoU to set up an Infrastructure Collaboration Platform which has formed a gateway for US companies to establish participation in infrastructure projects in India.
In the past, capital goods have contributed over 12% to total manufacturing, but that accounts for 15% of the GDP. If self-reliance through domestic production is what India is trying to achieve, these figures need to be pushed up. At present, metallurgical machinery and machine tools have not portrayed self-sufficiency as over 50% of demand is met by imports. The Engineering Services outsourcing market has been expanding since a lack of technological knowhow and straining pressures have left companies handicapped to pursue engineering operations. And, taking this advantage, this sector is expected to see a CAGR of over 27% in the coming five years.
With the Indian Aviation industry paving its way to become the third largest across the globe and Indian ports heavily investing in infrastructure, engineering in India holds great scope and necessity, especially in the next decade which is crucial in determining positions of many nations with regard to engineering expertise.
Imports must be replaced by domestic production as foreign product and service prices are on the rise. It is imperative that the country focuses on strategic placement of all segments of this sector in its delivery matrix since domestic capabilities are measures of success of this industry, and this provides security and higher capital flows.
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What this report contains:
A detailed overview of the industry
Structure of the industry from both, domestic and international perspectives
Related industries that this industry has inter-dependencies with and their understanding
Detailed analysis of industry segments in terms of the value and depth of corresponding market
Analysis & insights about the elements and critical success factors of this industry using strategic models
A forecast on the state of this industry in 2020, predicting the growth and movement patterns for 2016 - 2020
Our professional analysis on the future of the industry based on strategic actions adopted by major industry participants
Quantitative estimates and forecasts of the growth prospects of the industry using revenue and financial forecasting models