Engineering is a diverse industry with a number of segments. A company from this sector can be a power equipment manufacturer (like transformers and boilers), execution specialist or a niche player (like providing environment friendly solutions like water and waste management companies). It can be an electrical, non-electrical machinery and static equipment manufacturer too.
The construction industry of India is an important indicator of the development as it creates investment opportunities across various related sectors. The construction industry has contributed a share of around 8%to the national GDP in 2010-11.
The country’s capacity to absorb and benefit from new technology and industries depends on the availability, quality and efficiency of more basic forms of infrastructure including energy, water and land transportation. In some areas, roads, rail lines, ports and airports are already operating at capacity, so expansion is a necessary prerequisite to further economic growth. Construction projects account for a substantial portion of the proposed investments, making the E&C sector one of the biggest beneficiaries of the infrastructure boom in India. The regulatory environment is relaxing to encourage further foreign direct investment (FDI).
The manufacturing industry in India has all the qualities which enhance economic development, increase the productivity of the manufacturing industry and face competition from the global markets. The manufacturing in India is believed to have the potential of improving economic condition of India.
It has grown at a robust rate over the past ten years and has been one of the best performing manufacturing economy. Manufacturing sector contributes about 15% of India’s GDP and 50% to the country’s exports. The Manufacturing sector employed 58 million people (about 12% of the workforce) in 2008. Studies have estimated that every job created in manufacturing has a multiplier effect, creating 2–3 jobs in the services sector. In a country like India, where employment generation is one of the key policy issues, this makes this sector a critical sector to achieve inclusiveness in growth.
This Infrastructure sector is a major employment driver, being the second largest employer in the country, next only to agriculture. About 250 ancillary industries such as cement, steel, brick and timber and building material are dependent on the construction industry. A unit increase in expenditure in this sector has a multiplier effect and the capacity to generate income as high as five times.The sector is labor intensive and, including indirect jobs, provides employment to more than 35 million people.
As per the Government of India the manufacturing sector will create around 3-4 million jobs during the 12th five year plan (2012-17).