India Reports Strong Manufacturing Economy Growth
The Association For Manufacturing Technology (AMT) has reported India’s machine tool industry is steadily growing in a recently published news article. Consumption in the fiscal year (April 2022 through March 2023) grew by 55% to $3 billion. Machine tool production increased 32% to $1.5 billion. Production in the first quarter of 2023 increased by 9% YOY, about $264 million. Orders booked during the same period witnessed a growth of 14%, totaling $392 million. The consumption for the period stood at $608 million. Imports grew by 2% YOY to $384 million.
India plans to invest around $950 billion into the economy over the next decade to gear up to ride the artificial intelligence wave. The Ministry of Electronics and Information Technology’s AI Expert Working Groups outlined a comprehensive roadmap in their report, which includes launching AI Centers of Excellence (CoEs) focusing on crucial sectors including manufacturing. The CoEs aim to conduct research, drive technology development, promote innovation, and enhance AI skill development, focusing on startup collaboration.
Earlier this month, the Indian government approved investments by 27 companies, including Dell, HP, Foxconn, and Flextronics, under its $2 billion incentive scheme to manufacture IT hardware domestically. The companies are expected to invest around $360 million collectively and will likely create around 50,000 jobs in this sector.
Airbus has signed contracts with multiple Indian-based suppliers to produce and supply critical components for its A320, A330neo, and A350 aircraft. The contracts have been established with Aequs, Dynamatic Technologies, Gardner Aerospace, and Mahindra Aerospace to supply airframe and wing parts for Airbus’ single-aisle aircraft family.
The ongoing festive season pushed October wholesale dispatches of cars and SUVs to a record 391,000 units. The numbers continue to grow steadily, reaching 16% YOY. Overall car sales are projected to be around 4.15 million units in the fiscal year 2023-2024. The two-wheeler vehicles clocked 1.8 million units produced, up 20% YOY with three-wheelers clocking 76,940 units, up 42% YOY.
The government is working on introducing a $960 million incentive plan to foster its Electric Vehicle (EV) ecosystem. It will invite bids from companies enhancing the domestic production of EV batteries. Winning bidders in the program will require the establishment of 20 GWH advanced battery factories.
As per the latest KPMG research report, 5G, satellite communication, and semiconductors will jointly contribute around $240 billion to India’s economy over the next five years. This would account for 1.6% of the national GDP by 2028.
India’s steel manufacturing capacity has surpassed 161 metrics tons (MT). The industry is projected to grow further to 300 MT by 2030. The total capacity includes 67 MT by blast furnace, 36 MT by electric arc furnace, and 58 MT by induction furnace route. The industry has seen a consistent growth rate of 7-8% CAGR over the last several years.
Recently announced projects and investment news are listed below:
➤ State-owned steel maker Steel Authority of India (SAIL) is working on adding 15 MT to its existing 20 MT installed capacity.
➤ Toyota will invest $350 million to build its third manufacturing facility in India to supply the growing demand for its vehicles. The plant will be set up in their existing Bidadi facility near Bengaluru.
➤ Olectra Greentech (OGL), a prominent electric bus manufacturer, has announced plans to accelerate the construction of its greenfield factory in Seetharampur, Telangana, as demand for its e-buses continues to soar. The company has already delivered 214 buses and has pending orders for almost 9,000 buses over the next two years.
➤ Minda Corporation has announced a collaboration with Taiwan’s HSIN Chong Machinery Works to establish a JV to manufacture sunroofs for passenger vehicles. The new venture aims to provide end-to-end solutions, from design to production. India’s sunroof market will likely surge to $600 million by 2030.
➤ JK Tyre is set to expand its production capacity by 20% by October 2025 to meet the increasing demand for the Indian automotive market. The company currently operates at 95% of its available capacity of over 15 million tires annually.
For more information: www.amtonline.org
