Indian engineering industry has witnessed an extraordinary growth in the last few years as a result of increased investment in infrastructure development and industrial production. Growth in the domestic engineering industry has been fuelled by growth in key end-user industries and many new projects undertaken in various core industries such as railways, power, and infrastructure. The engineering industry plays a significant role in the development of other industrial sectors in the economy. This sector is very closely linked with the manufacturing and infrastructure sectors of the economy.
Capacity creation in sectors such as infrastructure, oil and gas, power, mining, automobiles, auto components, steel, refinery, and consumer durables has driven growth in this sector. For example, the domestic sales of automobiles have grown at a CAGR of around 18% over the past four years thereby increasing the demand for quick engineered infrastructural requirements. (Source: A brief report on engineering sector in India – by CCI – Sept 2012)
Besides the growing demand, what has been aiding the engineering industry in India is the availability of technical education infrastructure that provides an increased number of technically trained human resources every year. Further, India is being preferred by global manufacturing companies as an outsourcing destination due to its lower labor cost and better designing capabilities.