The Indian foundry industry is set to double its growth rate in the next five years due to opening up of defence, railways and aerospace areas for the private sector, prompting the government to relax foreign direct investment norms, said the Institute of Indian Foundrymen (IIF) in recent reports.
In a statement issued at the conclusion of the 67th Indian Foundry Congress (IFC) at the India Expo Mart in Greater Noida, IIF President Shashi Jain said the industry, which employs around five million people directly and two million people indirectly, will generate additional employment for three million families in the next five years.
About 1 200 delegates from 15 nations, including Germany, Italy, China, Japan, the UK and US, took part in the 67th IFC, according to IIF.
“Exports of foundry industrial components, which were on decline during the last two years, have registered an increase of $400 million while imports increased marginally up to $190 million during the year 2017-18 in comparison to the year 2016-17,” said Jain.
The industry has witnessed investment of around $600 million in the last two years in expansion and modernisation and will need to invest an estimated $9-10 billion in the next 10 years for capacity expansion to meet its targets, he added.
According to IIF, the auto sector is the largest consumer of the foundry industry. Currently, about four million tons, or approximately 30 per cent of the production of foundries valued at $4 billion, is consumed by the auto industry.