The machinery and equipment sector in India

Machinery and equipment sector in India (M&E)

The machinery and equipment sector in India forms the backbone of the manufacturing sector by providing all the necessary equipment and machinery required for production in the country. India is one of the largest exporters of machinery needed for steel, mining, fertilizer, cement, petrochemical and other heavy engineering equipment.

The electrical machinery industry is the largest sub-segment within the sector. This subsector provides equipment for power generation and energy distribution. The expansion of the energy sector has been important in increasing the generation capacity and demand for electrical machinery. With the Indian government’s focus on transitioning to green energy, there is a growing demand for machinery for the solar and wind power sectors.

Snapshot of the machinery and equipment sector in India

The Indian machinery market is expected to grow by 3.3% between 2024 and 2029 to a market value of 18.3 billion dollars by 2029.
Production for the construction industry is expected to grow at a CAGR of 7.1%.
With a CAGR of about 12%, the Indian textile industry is expected to reach a value of 225 billion dollars by 2025. To meet the growing demand, high-quality machinery is needed.
India is preferred by global manufacturing companies as an outsource destination because of its low costs, favorable investment conditions and large supply of engineers and other design personnel.
The electrical machinery industry is exempt from previously required licensing. In addition, this market has been opened to 100% Foreign Direct Investment (FDI). This has eased the entry of major global players into the electrical machinery industry in India.

Our expert

Deepmala Datta Head of Business Development

Growth drivers of the machinery and equipment sector in India

India is shifting to a more automated and process-driven way of manufacturing, increasing the demand for high-end equipment and machinery.
The demand for more high-end equipment and technologically advanced machinery is driven by the aerospace, automotive and defense industries.
The agricultural machinery industry needs tillage machinery, tractors, processing machinery, crop protection machinery, irrigation and drainage equipment and milling equipment.
The government helps farmers by providing special loans to purchase agricultural machinery to increase their yields. This drives the demand for machinery.
The textile machinery industry in India is the second largest in the world. Manufacturers are increasingly using advanced textile machinery to meet the increasing demand in the world market.