India’s manufacturing PMI surged to a 16-year high of 59.1 in March from 56.9 in February, reflecting stronger growth of new orders, output, and input stocks and renewed job creation. The services PMI registered its strongest growth in 13 1/2 years, rising to 61.2 in March from 60.6 in February on the back of strong demand that spurred sales and business activity.
In fiscal year 2023-24, India’s passenger vehicle (PV) segment sales soared to an all-time high of 3.94 million units, an increase of 8.45% over the previous fiscal year. SUVs secured a 50% market share. Overall auto retail sales in the fiscal year surged by 10.29%, reaching 24.5 million units.
According to Jefferies, India’s defense sector is poised to experience a CAGR of 13% from 2023 to 2030, with an estimated domestic defense expenditure opportunity of $100-120 billion from FY24 to FY30. Though India is presently one of the top three defense importers in the world, focusing on indigenization will drive this double-digit growth. Defense exports from India surged 16-fold from FY17 to FY24, reaching $3 billion. It is projected to ascend to $7 billion at a CAGR of 21%. Key companies involved in this sector include Bharat Dynamics Ltd., Bharat Electronics Ltd., Tata Advanced Systems Ltd., Paras Defense & Space Technology, and Logic Fruit Technologies.
India’s construction equipment sector is presently the third-largest market in the world. The market is currently valued at $7.3 billion and is projected to grow to $12 billion by 2028 at a CAGR of 8.3%. The year-over-year sales numbers for equipment in 2023 grew by 26%. Exports during this period grew by 3%. The sector will likely see around $4.5 billion worth of investment over the next six to seven years.
India added 24 GW of solar module and cell capacity in 2023. During the calendar year, the country added 20.8 GW of solar modules and 3.2 GW of solar cell capacity, taking the cumulative solar module manufacturing capacity to 64.5GW and the solar cell manufacturing capacity to 5.8 GW. Gujarat led the country’s PV module manufacturing capacity, followed by Rajasthan and Tamil Nadu.Telangana accounted for 39% of the annual solar cell production capacity, followed by Gujarat and Himachal Pradesh.
A few recently announced projects and investment news items are listed below:
Tesla Motors has signed a strategic deal with Tata Electronics to procure semiconductor chips for its worldwide operations.
Wipro GE Healthcare is investing over $1 billionto boost its local manufacturing output and R&D.
The JSW-MG Motors India joint venture intends to grow its EV segment to 1 million vehicles by 2030. The JV has committed to investing over $700 million to enhance its production capacity and plans to launch one new car every year.
Hyundai and Kia have agreed with Exide Energy Solutions to initiate the localization of EV battery production in India.
Craftsman Automation is setting up a green field plant in Bhiwadi, Rajasthan, to produce parts across three verticals: automotive powertrain, automotive aluminum products, and industrial engineering. This will cater to the burgeoning business opportunities in North India.
Bengaluru-based Mahindra Aerostructures signed a multiyear contract worth $100 million with Airbus Group. Mahindra will supply around 2,300 different metallic components to Airbus Atlantic in France.
GE Aerospace is investing $30 million to upgrade its Pune-based manufacturing facility. The investment will add new projects and manufacturing processes to the facility by acquiring machines/equipment and specialized tools.
Jindal Advanced Materials (JAM) is partnering with Italian speciality chemical fiber manufacturer MAE to establish a cutting-edge carbon fiber facility in India. The plant will be built with an annual capacity of 3,500 metric tons and will produce low-to-high-tow carbon fibers, expanding capacity to reach 10,000 mt by 2027.
For more information, please contact Arun Mahajan at AMahajan@AMTonline.org.
