Practices

The Engineering sector is the largest industrial sector in the country and can be broadly categorised into two segments - heavy engineering and light engineering. The Indian engineering sector continues to grow on account of robust internal consumption, which has encouraged both inbound as well as outbound cross border Mergers & Acquisitions (M&A). The sector, long dominated by heavy engineering, is highly structured and technology driven.

Engineering exports have seen a robust performance in recent years. In 2010-11, engineering exports reached US$ 60 billion. The next decade in Indian engineering sector belongs to power and energy, mining, water and sewage treatment and port infrastructure.

The planned infrastructure spending for the five year plan ending in 2012 has been targeted at US$ 500 billion, which is likely to be doubled to US$1 trillion in the following planning period. This planned infrastructure spending is across all core sectors which directly influence the engineering sector.

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