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) on Sunday.

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 5 lakh persons directly and 2 lakh people indirectly, will generate additional employement for 3 lakh 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, accroding to IIF.

"Export of foundary industrial component which was on decline during last two years, has registered an increase of $400 million while import increased marginally up to $190 million during the year 2017-18 in comparison to the year 2016-17," Jain said.

The industry has witnessed investment of around $600 million in the last two years in expansion and modernisation and will need to invest 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 4 million tonnes, or approximately 30 per cent of the production of foundries valued at $4 billion, is consumed by the auto industry.

Headquartered in Kolkata, with regional offices in Delhi, Chennai and Mumbai and 27 chapters across India, IFC is a member of the UK-based World Foundry Organization (WFO) and the Confederation of Indian Industry (CII).