Capital goods


FDI In Capital Goods Sectors

The capital goods manufacturing sector facilitates engagement across industries such as construction, engineering, infrastructure, consumer goods, etc. Increasing demand has led to notable growth in the capital goods sector of India. In FY 2018 -19 had an overall production figure amounting to $13.6 bn. The capital Goods industry in India provides approximately five mn direct employment.

Heavy electrical and power equipment, earthmoving and mining machinery, and process plant equipment are the top three export subsectors, accounting for 85 percent of India's total capital goods exports.

Market-oriented reforms such as 'Power for All' along with plans to add 93 GW by 2022, will generate massive demand for power transmission and distribution (T&D) equipment. In addition, India became a permanent member of the Washington Accord (WA) in June 2014. The country is now a part of an exclusive group of 17 countries that are permanent signatories of the WA, an elite international agreement on engineering studies, and engineers mobility.

100% FDI in the capital goods sector is allowed under the automatic route.


  • 12 %

    Share in manufacturing

  • 5 mn

    Direct employment

  • 40 %

    T&D equipment demand

  • 9.97 Bn (USD)

    Electrical machinery export

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