The capital goods & engineering turnover in India is expected to reach US$ 125.4 billion by FY17.
India exports its engineering goods mostly to the US and Europe, which accounts for over 60 per cent of the total exports. Recently, India's engineering exports to Japan and South Korea have also increased with shipments to these two countries rising by 16 and 60 per cent respectively. Sri Lanka, Nepal and Bangladesh have also emerged as the major destinations for India's engineering exports.
Engineering exports from India grew 11.33 per cent year-on-year to reach US$ 65.23 billion in FY 2016-17.
The engineering sector in India attracts immense interest from foreign players as it enjoys a comparative advantage in terms of manufacturing costs, technology and innovation. The above, coupled with favourable regulatory policies and growth in the manufacturing sector has enabled several foreign players to invest in India.
The foreign direct investment (FDI) inflows into India's miscellaneous mechanical and engineering industries during April 2000 to March 2017 stood at around US$ 3.31 billion.
Government of every nation is keeping a tab on the engineering sectors to keep pace with projected GDP. In developing and developed economies, the supplies, services and costing of capital intensive engineering goods call for the right time projections and periodical stage checks.
Politics and people are supporting the development and projects are becoming viable by way of average interest rates for longer tenures to the developer and an investor.
Every day innovation, Change in Supplies & Policies of the nations, shrinking interest rates, collaborations with other business hubs, delay in sourcing lead engineering segment highly competitive and sensitive and hence critical to forecast the continual changing parameters and bottlenecks.
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