Last Updated: 2/3/2025 11:08:00 PM
Foundry Industry at a glance:
In Details: The Indian foundry industry manufacturers metal cast components for applications in Auto, Tractor, Railways, Machine tools, Sanitary, Pipe Fittings, Defence, Aerospace, Earth Moving, Textile, Cement, Electrical, Power machinery, Pumps/ Valves, Wind turbine generators etc. Foundry Industry has a turnover of approx. USD 21.0 Billion with export approx. USD 4.11 billion.
The industry is expected to reach USD 31.77 billion by 2029, growing at a CAGR of 10.30% from 2024 to 2029
However, Grey iron castings have the major share i.e. approx 68% of total castings produced.
There are approx 5000 units out of which 90% can be classified as MSMEs. Approx 1500 units are having International Quality Accreditation. Several large foundries are modern & globally competitive. Many foundries use cupolas using LAM Coke. However, these are gradually shifting to Induction Melting. There is growing awareness about environment & many foundries are switching over to induction furnaces & some units in Agra are changing over to cokeless cupolas.
General Economic Scenario Govt. focus on “MAKE IN INDIA”, “EASE OF DOING BUSINESS”, infrastructure & easing FDI norms to promote investments in manufacturing & new initiatives & co-operations in skill development.
Forecasts of growth by leading institutions:- India to become fastest growing economy >7.5% YoY as per forecasts of leading International Institutions.
Major Foundry Clusters:- The major foundry clusters are located in Batala, Jalandhar, Ludhiana, Agra, Pune, Kolhapur, Sholapur, Rajkot, Mumbai, Ahmedabad, Belgaum, Coimbatore, Chennai, Hyderabad, Howrah, Kolkata, Indore, Chennai, Ahmedabad, Faridabad, Gurgaon etc.
Each cluster is known for its products typically for catering to some specific end-use markets. For example, the Coimbatore cluster is famous for pump-sets castings, the Kolhapur and the Belgaum clusters for automotive castings and the Rajkot cluster for diesel engine castings, Howrah cluster for sanitary castings etc.
Manpower: The foundry sector is highly labour intensive & currently generates employment for 2.0 Million directly & indirectly mainly from socially & economically weaker sections of society. It has potential to generate additional employment of additional 2.0 Million in next 10 years.
Role in Manufacturing Sector:
The new manufacturing policy envisages the increase in the share of manufacturing in the GDP to 25% from current 15% & to create 100 Million additional jobs in next 10 years. Since all engineering & other sectors use metal castings in their manufacturing, the role of foundry industry to support manufacturing is very vital. It is not possible to achieve the above goal without the sustainable corresponding growth of the foundry sector
Foundries Focus on Technology:
Sectors Driving Growth:
Key Challenges:
Lack of Skilled Manpower: Insufficient trained personnel to operate advanced machinery and technology.
Stringent Government Regulations: Environmental and labor laws impacting the industry's operations and profitability.
Dependence on Imported Raw Materials: Fluctuations in global raw material prices affecting production costs.
World Casting Census 2021-22:
Production of Castings in India during last Six Years (in Million Tonnes)
Exports Import:
An analysis of the export quantity in the last few years shows how India’s merchandise exports have shifted away from traditional commodity baskets like textiles, gems & Jewellery etc., to more on engineering goods.
Castings, which are considered to be the key component in the supply chain of numerous niche sectors like Auto, Auto Components, Railways, Defence, Aerospace, Valves, Pumps, Sanitary, Agri Machinery, Construction Equipment etc. continued its growth trend to mark an increase of 4.47% in 2023-24 from the previous year. The export of major castings increased from 3.94 Billion USD (2022-23) to 4.11 Billion USD in 2023-24, touching the 4 Billion USD export mark for the first time ever. The casting export recorded positive year-on-year growth for the third straight year since 2020-21 growing at a CAGR of 12.84%.
The below expected growth of casting export in 2023-24 was majorly due to recessionary trends seen in the developed countries, especially the EU, which has caused issues for Indian casting exporters to a certain extent. The situation has been further worsened by the various market access barriers that countries in the EU and North America are imposing on Indian exporters. Such disruptions in trade has although hindered potential growth, but there remains optimism that in 2024-25, India will see better growth in the casting sector.
The following HSN codes recorded more than 15% growth in 2023-24 from the previous year 2022-23
73071190 OTHERS NON-MALLEABLE CAST IRON 84099114 PISTON ASSEMBLES 84811000 PRESSURE-REDUCING VALVES 84812000 VALVES FOR HYDRO/PNEUMATIC 84818030 INDUSTRIAL VALVES (EXCL PRV & TCV) 84835090 OTHERS 84836090 OTHERS
Similarly Imports also increased approx. by 7% from the year 2022-23. We saw major increase in the imports of items under HSN 73030030, 84812000, 84814000, 84819090, 84833000 etc.
The Indian government has introduced various initiatives to boost exports, including the National Export Insurance Account (NEIA) and the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme. Additionally, the government aims to streamline regulatory and logistical processes for online trade through the National Trade Facilitation Action Plan (NTFAP).
Despite the positive outlook, India's export sector faces challenges such as sluggish global trade growth, geopolitical tensions, and disruptions in supply chains.
Overall, India's export prospects are promising, driven by growth in key sectors and government initiatives. However, the foundry sector must navigate challenges to achieve its full potential.
India remained net exporter of castings with balance of trade valuing 2.31 Billion USD.
Major Items exported
Major countries where castings are exported
Potential Markets for Indian Castings
Sector-wise consumption of casting: Automobile sector remains major consumer of castings, please see the chart below:
Statewise Dispersal of Foundry Units in India (%)
