Engineering Industry in India: Engineering is one of the largest segments of Indian industry. Indian engineering exports posted a growth of more than 23 percent. Furthermore, with the development of assiciated sectors such as automotive, industrial goods and infrastructure, coupled with a well-developed technical human resouces pool, engineering exports are poised to grow at a rate of 15 to 20 percent over the next five years. The majority of Indian engineering exports destinations are Europe and America, which account for approximately 45 percent of total exports.
Some of the factors contributing to the growth of this sector include:
• The average labor cost is significantly low compared with other countries.
• There is a wealth of raw material resources to meet the demands of the engineering industry.
• Industries such as machine tools, textile machinery, and auto components, have global capabilities and are competitive at the global level.
• India is also preferred by global companies as a strategic base for market entries into other developing countries.
