India’s Capital Goods sector, valued at ₹6.2 trillion in 2023-24, plays a vital role in the country’s industrial development, providing machinery and equipment for infrastructure, manufacturing, and construction industries.
Why Invest in the Capital Goods Sector
- Infrastructure Growth: Major infrastructure projects will drive demand for capital goods.
- Government Support: The Production Linked Incentive (PLI) scheme and National Infrastructure Pipeline (NIP) promote sector growth.
- Technological Advancements: Automation and innovation in manufacturing are enhancing productivity and efficiency.
Incentives & Schemes
- PLI Scheme: ₹1.97 trillion allocated to boost domestic manufacturing and exports.
- NIP: ₹111 trillion investment in infrastructure to support capital goods demand.
- Technology Upgradation Fund: ₹7,000 crore to modernize machinery and improve production.
Highlights
- OEMs in India: Over 50 major Original Equipment Manufacturers (OEMs) are driving sector growth.
- Exports: Capital goods exports reached $12.5 billion in 2023.
Capital Goods Sector Data
| Category |
Details |
| Market Size (2023-24) |
₹6.2 trillion |
| Export Value (2023) |
$12.5 billion |
| FDI in Capital Goods |
Over $5 billion in cumulative FDI since 2000 |
| PLI Scheme Allocation |
₹1.97 trillion |
| Manufacturing Capacity |
Expected CAGR of 7-8% |
| Employment |
2 million employed |
| OEMs in India |
50+ major OEMs |
| Technology Upgradation Fund |
₹7,000 crore for machinery modernization |
| Exports Growth |
15% increase in exports in 2023 |
| Sector Contribution to GDP |
1.8% of India's GDP |
