Engineering is by far the largest segment in Indian industry. It employs approximately 4 million skilled and semiskilled workers. The engineering sector has witnessed tremendous growth, powered by significant investments in power projects and infrastructure development.
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Indian engineering exports to Saudi Arabia, Thailand, the Netherlands, Malaysia, Bangladesh and Egypt have also seen significant rise during the period 2011-12 to 2013-14.
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A key driver for increased engineering exports has been the shifting of global manufacturing bases to countries such as India that offer lower costs and good engineering aptitude.
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The nature of Indian engineering exports is changing with time—India is fast moving from exporting low-value goods to developing countries to exporting high-value goods to developed countries.
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New opportunities, such as outsourcing of engineering goods and services, new product design, product improvement, and maintenance and designing of manufacturing systems, are providing fresh growth avenues.