Opportunities worth Rs 50,000 Crore in capital goods sector

By OEM Update Editorial January 10, 2017 1:37 pm IST

Though the demand for capital goods in the country has grown by almost two-and-a-half times over the last decade to Rs 3.7 lakh crore in 2015, sectors’ contribution to India’s GDP is 0.6 per cent as compared to 4.1 per cent for China, 3.4 per cent for Germany and 2.8 per cent for Korea. Much of the demand was met by imports, thus making it the country’s fourth-largest import category after crude oil, electronics and gold, as per a report by FICCI and McKinsey & Company.

As per the report, the capital goods sector grew at only 2 per cent per annum between 2010 and 2015, compared to the overall economic growth rate of 7 per cent. The demand for capital goods, driven by overall economic growth, has been increasing at the rate of 10 per cent per annum, pushing the imports of capital goods to $ 30 billion in 2015.

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