2. INTRODUCTION
• The Engineering sector is the largest segment of
the overall Indian industrial sector. India has a
strong engineering and capital goods base.
• The engineering sector employs over 4 million
skilled and semi-skilled workers (direct and
indirect).
• Engineering goods include metal
products, industrial machinery and
equipment, auto and its components, and transport
equipment.
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3. • The sector can be categorized into
Heavy engineering segments
Light engineering segments.
• Heavy engineering segment forms the majority
of the engineering sector in India. In the year
2003-04, out of the total engineering production
of US$ 22 billion, the heavy engineering market
contributed over 80 per cent with the light
engineering segment accounting for the
remaining.
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4. • India has a well-developed and diversified
industrial machinery/ capital base capable of
manufacturing the entire range of industrial
machinery.
• The industry has also managed to successfully
develop advanced manufacturing technology
over the years.
• Among the developing countries, India is a
major exporter of heavy and light engineering
goods, producing a wide range of items.
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5. • The engineering industry in India manufactures
a wide range of products, with heavy engineering
goods accounting for bulk of the production.
• Most of the leading players are engaged in the
production of Heavy engineering goods and
mainly produces high-value products using
high-end technology.
• Requirement of high level of capital investment
poses as a major entry barrier for the leading
players.
• Consequently, the small and unorganized firms
have a small market presence.
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6. • The Light engineering goods segment, on the
other hand, uses medium to low-end technology.
Entry barrier is low on account of the
comparatively lower requirement of capital and
technology. This segment is characterized by the
dominance of small and unorganized players
which manufacture low-value added products.
However, there are few medium and large scale
firms which manufacture high-value added
products.
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8. Heavy Engg Industry
• Capital requirement is more.
• Produces high-value products.
• Latest high-end technology.
• Major entry barrier is the investment of the
company.
• Competition from Foreign players.
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9. The Heavy Electrical Industry can be classified
into the following product categories:
1. Turbines and Generator Sets
2. Boilers
3. Transformers
4. Switchgear and Control Gear
5. Electrical Furnaces
6. Shunting Locomotives
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10. Light Engg Industry
• Capital requirement is relatively lower
• Competition in the local market is high
• Technologically weaker.
• The sector also includes products such as
bearings, steel pipes and tubes, etc.
• Most of the products in the light engineering
industry serve as inputs for the capital goods
industry.
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11. The major sub-segments within this industry
are:
1. Medical and Surgical Instruments
2. Process Control Instruments
3. Antifriction roller bearing
4. Typewriters
5. Bicycle Industry
6. Sewing Machines
7. Plain Paper Copier
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12. Major players in Engg industry:-
• BHEL
• HAL
• HMT
• L&T
• Crompton greaves
• Kirloskar oil engines ltd
• Siemens and etc.
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13. FDI Inflows in the Engineering Sector
– Aug 91 to Dec 06
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15. Engineering Export Promotion Council
(EEPC)
• EEPC was set up in 1955 under the sponsorship of
Ministry of Commerce, Govt. of India, for export
promotion of engineering goods, projects and services
from India.
• Initially started with a few hundreds of engineering units
as an small outfit, with a passage of time it has grown to
be the largest Export Promotion Council having
membership of nearly 12,000 from amongst large
Corporate Houses, Star Trading Houses, SME, etc.
• Out of the total membership of the Council, 60%
constitutes the SMEs.
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16. • Engineering exports from India has been
steadily growing and the performance has
probably exceeded all expectations ever since the
birth of the Council. Apart from being one of the
largest stakeholders in the total exports out of
India, – the engineering exporters are the
foremost net foreign exchange earner in the
country.
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17. Export Performance
• India's engineering exports registered the
highest ever growth of about 85 per cent to USD
60.1 billion in 2010-11.
• During 2009-10, the exports were USD 32.5
billion, according to EEPC data.
• The US accounts for 30 per cent of the country's
total engineering exports.
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18. • India's total exports in 2010-11 stood at USD
245.9 billion, the highest ever since
Independence. Out of which engineering goods
exports accounts for $60.1 billion i.e. almost
40% of total India’s exports
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