India Metal Forging Market Size, Share, and Growth Forecast 2026 – 2033

The India metal forging market is expected to be valued at US$ 8.2 Bn in 2026 and is projected to reach US$ 14.0 Bn, growing at a CAGR of 7.9% between 2026 and 2033.

The India metal forging market is on a strong upward trajectory. Rising vehicle production, rapid infrastructure development, and government support through schemes such as Production Linked Incentive (PLI) and Make in India are the primary growth engines. The Automotive Component Manufacturers Association of India (ACMA) reports that domestic auto component output crossed US$ 70 Bn in FY2024, generating sustained demand for precision-forged parts. At the same time, defense indigenization and expanding aerospace production are widening the addressable market for Indian forging companies, supporting both volume growth and higher-value applications.

Drivers - Surge in Domestic Vehicle Production and Auto Component Exports

India is the world's third-largest automobile market by volume. The Society of Indian Automobile Manufacturers (SIAM) recorded total vehicle sales of around 23.8 million units in FY2024, a 12.5% year-over-year increase. Forged components such as crankshafts, connecting rods, axle beams, steering components, suspension parts, and wheel hubs are widely used across conventional vehicle platforms.

With Original Equipment Manufacturers (OEMs) such as Tata Motors, Maruti Suzuki, and Mahindra & Mahindra expanding production capacity, Tier-1 forging suppliers are receiving sustained demand across multiple vehicle programs. The ACMA projects auto component exports to reach US$ 30 Bn by FY2026, encouraging Indian forging companies to invest in closed-die and precision forging lines to meet global quality standards and international supply chain requirements.

Government Infrastructure Spending and Defense Indigenization Push

The Ministry of Finance allocated INR 11.11 trillion (around US$ 133 Bn) for capital expenditure in the Union Budget 2024–25, with substantial funds directed toward railways, roads, ports, and defense infrastructure. India's defense procurement policies also emphasize domestic manufacturing and local value addition, while the government permits up to 74% foreign direct investment (FDI) in defense manufacturing through the automatic route under applicable conditions.

Forged steel and alloy components are widely used in military vehicles, artillery systems, naval equipment, aircraft structures, and other defense platforms. The combination of large infrastructure investment and increasing defense indigenization is creating a durable, policy-supported demand channel for domestic forging companies and encouraging capacity expansion through the early 2030s.

Restraints - High Capital Intensity and Energy Cost Burden

Metal forging is an energy-intensive manufacturing process. Industrial electricity tariffs in India can range from INR seven to nine per kWh across major manufacturing states, creating a significant operating-cost consideration for forging companies. Establishing a modern closed-die forging press with automated trimming and heat-treatment lines can require substantial capital investment, depending on press capacity, automation level, and supporting equipment.

For small and medium enterprises (SMEs), which account for a significant portion of India's forging industry, access to affordable long-term financing remains a challenge. These structural cost pressures can compress operating margins and slow technology upgrades, limiting the ability of smaller players to compete with larger integrated forging companies on price, quality, and delivery lead times in export markets.

Skilled Labor Shortage and Technological Skill Gap

Modern precision forging requires expertise in CNC programming, die design software, process simulation, and statistical process control. India's forging industry faces shortages of trained die designers, toolmakers, maintenance specialists, and skilled press operators, particularly across industrial clusters where demand for advanced manufacturing talent is rising.

Although India's engineering education system produces a large number of graduates, fewer candidates enter the workforce with specialized hands-on experience in forging processes, die development, and production quality control. High attrition in shop-floor roles can increase training costs and disrupt production schedules. This skills gap can constrain rapid capacity expansion and create quality-control challenges for companies seeking international certifications and export contracts.

Opportunities - Ongoing Electrification of Vehicles Rising Demand for Lightweight Forged Components

The rapid electrification of India's vehicle fleet is creating a new demand pool for forged components. Although EV powertrains eliminate conventional internal combustion engine components such as crankshafts and connecting rods, they require other structural and drivetrain components, including motor housings, suspension knuckles, steering components, chassis parts, and lightweight structural assemblies. The Society of Indian Automobile Manufacturers (SIAM) projects strong growth in India's EV adoption through FY2030.

Aluminum forging is particularly well positioned for EV applications because lower component weight supports vehicle efficiency and driving range. Forging companies investing in advanced aluminum forging, warm forging, and precision forming technologies are positioned to capture higher-value contracts from domestic OEMs and global EV manufacturers expanding production in India.

Aerospace and Space Sector Expansion Opens Immense Opportunities

India's aerospace and space sectors are expanding, creating new opportunities for high-performance forged components. The Indian Space Research Organisation (ISRO) and private launch-vehicle companies such as Skyroot Aerospace and Agnikul Cosmos are advancing production of launch vehicles, propulsion systems, and satellite platforms. These applications require specialized materials such as titanium, nickel alloys, and Inconel for components exposed to high temperatures, pressure, and demanding mechanical loads.

The Directorate General of Civil Aviation (DGCA) expects India's aircraft fleet to expand substantially through 2040, supporting long-term growth in aircraft manufacturing, maintenance, repair, and overhaul (MRO) activity. Indian forging companies that achieve AS9100 aerospace quality certification can access domestic and international aerospace supply chains, where specialized aerospace forgings generally command higher value than conventional automotive components.

Process Insights

The closed-die segment is expected to dominate the India metal forging market, holding around 42% share in 2026. Closed-die forging produces near-net-shape components with tight dimensional tolerances and favorable mechanical properties, making the process well suited to safety-critical automotive parts such as crankshafts, connecting rods, gear blanks, and steering knuckles.

India's strong passenger vehicle and commercial vehicle production, with total vehicle sales reaching around 23.8 million units in FY2024 according to SIAM data, supports a continuous, high-volume demand pipeline for closed-die forged components. Leading players such as Bharat Forge Limited and MM Forgings Limited have invested in multi-ton closed-die press lines, automation, and precision manufacturing capabilities, strengthening their cost and quality competitiveness. The segment also benefits from growing adoption of higher-strength micro-alloyed steels, which require controlled forging processes and precision die engineering to achieve the required component geometry and mechanical properties.

Material Insights

Carbon steel remains the leading material segment, accounting for roughly 38% of the India metal forging market in 2026. The material's combination of high strength, broad availability, established processing capabilities, and relatively low cost makes it a preferred choice for automotive axles, flanges, gear blanks, agricultural equipment, and other industrial components. India's expanding domestic steel production base supports a reliable and cost-competitive raw-material supply chain for carbon-steel forgings.

Furthermore, advancements in thermo-mechanical processing of carbon-steel billets enable manufacturers to achieve increasingly demanding strength and durability requirements while controlling material costs. This advantage supports carbon steel's continued market leadership across automotive, industrial, agricultural, and other price-sensitive end-use applications.

Aluminum is the fastest-growing material segment, driven by increasing demand for lightweight components across electric vehicles, passenger cars, and commercial vehicles. Aluminum forgings offer a favorable strength-to-weight ratio and can reduce component weight compared with conventional steel alternatives. Growing EV production is strengthening this trend as automakers seek weight reduction to improve vehicle efficiency and driving range. Forging companies investing in advanced aluminum forming, heat-treatment, and precision machining capabilities are positioned to benefit from rising demand for lightweight automotive and industrial components.

End-Use Insights

Automotive is both the leading and the fastest-growing end-use segment, supported by the scale and continued expansion of India's vehicle manufacturing ecosystem. Passenger cars, commercial vehicles, and two-wheelers use multiple forged components, including crankshafts, connecting rods, wheel hubs, steering components, suspension parts, and transmission components, making automotive one of the largest consumers of forged metal parts in the country.

SIAM data indicates that commercial vehicle sales exceeded one million units in FY2024. Commercial vehicles generally require a higher content of heavy-duty forged components because of their greater load and torque requirements. The government's infrastructure spending is further supporting commercial vehicle demand, while PLI incentives for automotive components are encouraging deeper localization across OEM and supplier networks. Together, these factors are creating a reinforcing cycle of domestic vehicle production, component localization, and demand for automotive-grade forgings.

The India metal forging market is moderately consolidated, with a fragmented base of small and medium enterprises. Leading companies such as Bharat Forge, MM Forgings, Ramkrishna Forgings, Sansera Engineering, and Rolex Rings compete through production capacity, metallurgical expertise, precision manufacturing capabilities, and diversified end-use exposure. Market leaders are increasingly differentiating through vertical integration, adding in-house machining, heat treatment, testing, and assembly capabilities to move further up the value chain and offer higher-value components.

Strategic partnerships and joint ventures with global automotive and industrial companies are also supporting technology transfer, process development, and access to international supply chains, particularly for higher-specification applications such as aerospace and advanced automotive components. Meanwhile, mid-tier forging companies are adopting lean manufacturing, automation, and Industry 4.0-based process monitoring to improve productivity, consistency, and quality while narrowing the technology gap with larger competitors.

Key Industry Developments

• June 2026: Bharat Forge announced that it secured its largest-ever Army carbine order, reinforcing its expanding defense manufacturing business. The contract strengthens the company's high-value forged components and precision engineering capabilities, while defense exports now account for around 40% of its defense revenue, supporting long-term growth in India's metal forging industry.
• June 2026: MM Forgings invested INR 230 crore to install a 16,500-tonne hot forging press, expected to be the world's largest operational unit of its kind. The expansion enables production of larger commercial vehicle components, strengthens export capabilities, and supports the company's target of achieving INR 2,000 crore revenue by FY27.
• January 2026: Ramkrishna Forgings commenced commercial production at its first aluminum forging facility in Jharkhand with an installed capacity of 3,000 tons per annum. Backed by an investment of INR 57.5 crore, the plant expands the company's portfolio beyond steel forging and strengthens its presence in the electric vehicle market through lightweight forged components.