The capital goods sector has been in the spotlight in recent times. The sector has seen tailwinds, such as robust order books, improved execution, and a strong government push. Here are four charts depicting the trends of the Indian capital goods landscape.

Manufacture in India

India’s manufacturing output forms about 14 per cent of the country’s GDP, while the capital goods comprise nearly 12 per cent of the manufacturing output. Strong policy support and revival in private capex may drive growth for the sector.

Defence and railways

Defense and railways comprise a major share in the government capital outlay (including both central and state government capex)

Advantage OEMs

Within capital goods space, OEM cateogory dominates the revenue share while also generating higher EBITDA margins against EPC

Miles to go globally

While China dominates in terms of manufacturing output, India lags its global peers