Connecting Innovation to the Markets

The demand for engineering goods distribution in India has been growing due to industrial expansion, government initiatives and growing global demand. India, one of the fastest growing economies, has been able to take advantage of its strong manufacturing base to build a robust ecosystem for engineering goods, covering machinery, equipment and tools in sectors ranging from construction, automotive and aerospace. The government’s "Make in India" initiative, which promotes domestic production and defines India as an emerging manufacturing hub, has been the major reason behind this growth. The demand for engineering goods has surged coupled with the 'Production Linked Incentive' (PLI) schemes and huge investments in infrastructure development. Further growth of the distribution network has been spurred by large projects, such as smart cities, renewable energy parks and transport corridors.

India has come to be a major engineering goods supplier to the markets of US, Europe and Southeast Asia. As per the latest numbers, exports from India’s engineering goods have grown by about 16 per cent in the year on year basis, driven by the demand for automotive components, industrial machinery and precision tools. Smooth supply chain operation has also been facilitated by free trade agreements (FTA) with the main trading partners. Technological advancement is changing the face of the sector. Industry 4.0, digitization and logistics automation has improved distribution channels, increased efficiency and reduced costs through adoption. Also, the smaller manufacturers and distributors have got wider markets to them through e-commerce platforms and digital marketplaces. But supply chain disruptions, regulatory hurdles and raw material price volatility remain. Reforms in policy and growing investments in sustainable practices will be necessary for sustained growth.

In this special issue, we introduce you to the top companies in this segment. Industry Outlook has identified the select few companies that have done particularly well with a high level of dedication. We have found that they have gone the extra mile in proving their commitment to excellence in an integrated manner. We welcome your feedbacks and suggestion that you may have concerning this special issue.