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The state's engineering sector contributes 23.1 per cent to the country's total engineering output. The share in India's total employment in the sector is 20.3 per cent. The sector in the state comprises machinery and equipments, both mechanical and electrical. Consumer durables, comprising of consumer electronics and consumer appliances form an important segment of the engineering sector.

The consumer goods market in India recorded double-digit growth rates in 2004. With low penetration levels for consumer goods in the country, the growth momentum is likely to continue. For example, penetration levels of televisions in India is 24 per cent as compared with 98 per cent in China, 1 1 per cent in Brazil, 235 per cent in France, 250 per cent in Japan and 333 per cent in US.

The increasing income levels and the growing strength of the middle class is expected to give a boost to the consumer durables and home appliances industries. This will also provide a fillip to the engineering sector. Major players present in the state are National Panasonic, Whirlpool, LG, Electrolux, Bajaj Electricals, Videocon, Onida and Samsonite. Recently, LG Electronics has decided to invest US$ 1 10 million for setting up a manufacturing unit at Pune. The unit will cater to both domestic and export markets.