MACHINERY SECTOR OVERVIEW-2020

Statistics, news & updates: everything you need to know about the Machinery Industry in India

Snapshot

  • Summary
  • COVID-19 Impact
  • Industry Clusters
  • Growth Drivers
  • Key Players
  • Market Stats
INDUSTRIAL EQUIPMENT SECTOR

Sub-Industries

  • Construction Machinery   & Heavy Trucks
  • HVAC (this includes cooling towers)
  • Industrial Machinery
  • Material handling equipment
  • Oil & Gas and Mining equipment
  • Packaging machinery
  • Pump & Compressor
  • Tools including Handtools
  • Woodworking machinery

Summary

India Machinery Industry is the core around which all the industrial manufacturing takes place in the country. The machinery industry in India has amply demonstrated its potential in meeting the enormous demand of good both in the domestic as well as the international market. The machinery industry in India forms the backbone of the manufacturing sector by supplying all the necessary equipment’s and machinery required for production. Machinery of various types is required for production. Depending on the field in which they are used, machinery can be large scale, medium scale or small scaled. India is one of the leading exporters of machines required for the steel industry, mining equipment’s for the mining industry, and equipment’s for the fertilizer industry, cement industry, petrochemical manufacturing industry and heavy engineering equipment’s.

Covid-19 Impact

  • Machinery of various types is required for production, depending on the field in which they are used. Many sectors of machinery industry such as agricultural machinery industry, textile machinery industry, construction machinery industry have been impacted by Covid19.
  • The construction industry has come to a standstill due to the pandemic coronavirus impact. Capital goods companies are bracing themselves for a depressed fourth quarter, as they grapple with prolonged order conclusions due to the Covid-19 scare. The government, along with the central bank, has already been working on multiple fronts to battle the pandemic.
  • The country’s agriculture sector is functioning smoothly despite COVID-19 lockdown and there will not be much impact on its growth in the current fiscal, unlike other sectors. In the current lockdown situation, the agriculture sector is functioning smoothly as there has been no shortage of food grains, vegetables and dairy products. But, many other sectors are impacted.

The statistics below are taken from Industry data available pre-Corona virus impact.

Growth Drivers

  • The agriculture machinery industry in India has helped immensely in increasing the productivity of land and labour. Some of the machinery used in the agriculture industry consists of soil working equipment, tractors, power tillers and engines, processing machinery, crop protection machinery, irrigation & drainage equipment machinery, milling equipment etc. There are government schemes that provide loans to farmers to buy agriculture machinery to increase their yield.
  • The textile machinery industry in India is the second-largest in the world. Manufacturers are increasingly making use of sophisticated textile machinery to produce the best goods and meet the increasing demand of the global market.
  • The electrical machinery industry has been de-licensed, along with 100% FDI allowed in this sector. This has facilitated the entry of major global players into the electrical machinery industry in India.
  • India is preferred by global manufacturing companies as an outsourcing destination, due to cost competitiveness, favourable investment conditions, better engineering and design capabilities with high-end manufacturing sets ups to meet global requirements.

Key Players in India

National

  • Voltas
  • Telco Construction Equipment
  • Bharat Earthmovers
  • B G Shirke Construction Equipment
  • Terex Vectra Equipment Salgaocar Engineers
  • Volvo Construction Equipment India
  • Larsen & Toubro
  • Ingersoll Rand India
  • Caterpillar India
  • Escorts Construction Equipment

International

  • JCB India
  • Metso Minerals
  • Atlas Copco
  • Trane Technologies

Map – Industry Clusters

machinery-industry-maps

Market Stats

  • As the construction sector is another sector that makes use of machinery on a very large scale it is anticipated that through 2020 about $10 billion of construction machinery will be required in the country.
  • Machinery market projected to reach US$ 7 billion by 2020 from US$ 4.2 billion in 2017.
  • India is expected to expand at a compound annual growth rate (CAGR) of ~7% until 2023.
  • Construction output is expected to grow on average by 7.1% each year.
  • The size of domestic textile machinery industry is poised to hit USD 4.62 billion in the next five years from the present USD 2.9 billion.
  • The textile sector is one of the largest contributors to India’s exports, accounting for approximately 11 per cent of the total outbound shipments. India’s overall textile exports during FY16 stood at USD 40 billion and is expected to reach USD 223 billion by 2021.
Frequently Ask Questions
Talk to Our Experts