1、For updated information,please visit www.ibef.orgAugust 2025ENGINEERING AND CAPITAL GOODS2Executive Summary3Advantage India 5Market Overview 7Notable Trends and Strategies19Growth Drivers22Opportunities 35Key Industry Contacts41Appendix43Table of Contents3Executive summary (1/2)Electrical equipment
2、market(US$billion)71.85124.8305010015020222027FEngineering R&D Revenue(US$billion)364263020406080FY19FY22FY25Capital goods turnover(US$billion)92.00115.1705010015020192025FIndias Capital Goods manufacturing industry serves as a strongbase for its engagement across sectors such as Engineering,Constru
3、ction,Infrastructureand Consumer goods,amongst others.Capital Goods sector contributes 1.9%to overall Indias GDP.The Quick Estimates of IIP stands at 153.3 in June 2025 against151.0 in June 2024.The Indices of Industrial Production for theMining,Manufacturing and Electricity sectors for the month of
4、 June2025 stand at 123.2,152.3 and 217.1,respectively.Theheavyengineeringandmachinetoolssectorisavitalcomponent of the capital goods industry.Currently,Indias capitalgoods sector is receiving considerable focus due to its essentialcontribution to industrial growth and economic development.Notably,th
5、e production within this sector has surged from Rs.2,29,533 crore(US$27.2 billion)in CY15 to Rs.4,29,001 crore(US$50.7 billion)inCY24.Indian Electrical equipment is the largest sub-sector followed byPlant equipment&Earth moving/miningmachinery.The electrical equipment market share in India is expect
6、ed toincrease from US$52.98 billion in 2022 to US$125 billion by 2027,implyinga robust CAGR of 11.68%.Indias Engineering Research and Development Services marketsize is estimated at Rs.11,42,819 crore(US$133.71 billion)in 2025and is expected to reach Rs.18,62,391 crore(US$217.90 billion)by2030,at a