The Indian engineering sector is of strategic importance to the economy owing to its intense integration with other industry segments. The engineering sector in India attracts immense interest from foreign players as it enjoys a comparative advantage in terms of manufacturing costs, technology and innovation.

1. ENGINEERING
and its
PRODUCTS
By,
Mohammed Saqib(16YACMD114)
1st sem MBA(2016-17)
Presidency College, Bangalore

2. Over view
• The Indian engineering sector is of strategic
importance to the economy owing to its
intense integration with other industry
segments.
• The engineering sector in India attracts
immense interest from foreign players as it
enjoys a comparative advantage in terms of
manufacturing costs, technology and
innovation.

3. Major classifications
• Infrastructure
• Power
• Mining
• oil & gas
• Refinery
• Steel
• Automotives
• Consumer durables

4. Products list
• Castings
• Forgings
• Fasteners
• transport equipment
• Machine tools
• Abrasive power tools
• capital goods
• Cutting Tools & Related Items
• Acetylene Plants
• Ball Bearings & Related
Components
• Block Making Machinery
• Insulators & Insulation Materials
• Separators, Strainers & Purifiers
• Welding Rods
• Electrodes & Wires
• Electrical Conduits and Fittings
• Forgings, Forging Parts & Supplies
• Piston & Crankshaft Assemblies
• Safety Equipment & Systems
• Electric Motors and Components

5. Engineering products & Govt
• India on its quest to become a global superpower has made
significant strides towards the development of its engineering
sector.
• The Government of India has appointed the Engineering Export
Promotion Council (EEPC) as the apex body in charge of promotion
of Engineering goods, products and services from India.
• The engineering sector, being closely associated with the
manufacturing and infrastructure sectors, is of strategic importance
to India’s economy.
• India became a permanent member of the Washington Accord
(WA) in June 2014.
• The country is now a part of an exclusive group of 17 countries who
are permanent signatories of the WA, an elite international
agreement on engineering studies and mobility of engineers.

6. Market size & Exports
• India exports its engineering goods mostly to the US and Europe, which
accounts for over 60 % of the total exports.
• India's engineering exports to Japan and South Korea have also increased
with shipments to these two countries rising by 16 and 60 % respectively.
• Sri Lanka, Nepal and Bangladesh have also emerged as the major
destinations for India's engineering exports during April-February 2015-16,
together accounting for a sizeable chunk of US$ 5.17 billion
etc.,
• Engineering products turnover in India is expected to reach US$ 125.4
billion by FY17.
• Engineering exports from India stood at US$ 70.6 billion in FY15,
registering a Compound Annual Growth Rate (CAGR) of 11.1 per cent over
FY08-15.

7. Key categories of engineering exports

8. Investments
• Enjoys 100% FDI
• The FDI inflows into India's engineering
industries during April 2000 to March 2016
stood at around US$ 3,068.1 million
– Source: Department of Industries Policy and
Promotion (DIPP).

10. Major Investors & their investments
• Rolta India, an Information Technology (IT), engineering and geospatial
services provider signed a seven-year, multi-million pound contract with
UK based company UK Power Networks, to manage and update the firm's
spatially-enabled network asset information.
• India's Texmaco Rail & Engineering has signed a memorandum of
understanding with Russia's ROSOBORONEXPORT (ROE) for
modernisation of Armoured Vehicles operated by the Indian Army.
• Toshiba Transmission and Distribution Systems (India) Pvt Ltd has bagged
Rs 226 INR (US$ 33.46 million) contract from Kenya Power and Lighting
Company for around 8,000 distribution transformers.
• Leading aircraft maker Airbus announced it has begun sourcing
components for almost all its jets from India and it aims to take its
cumulative sourcing from India to US$ 2 billion by 2020.
• Engineers India Ltd (EIL) inked a US$ 139 million consultancy deal for a 20
million tonnes (MT) refinery and polypropylene plant being built in Nigeria
by Dangote Group.

11. Expectations
• The capital goods and engineering turnover in
India is expected to reach US$ 125.4 billion by
FY17
• Electrical equipment market size is forecast to
reach US$ 100 billion by FY22

12. Exports going strong
• Indian engineering exports rose to US$ 70.7 billion in 2014–15 from
US$ 32.5 billion in 2009–10.
• About 31.8 per cent of exports were to the EU and North America
in 2014–15.
• The UK imported Indian engineering goods valuing US$ 2.6 billion in
2014–15, posting a growth of around 7.0 per cent over 2013–14.
• The UAE imported Indian engineering goods valuing US$ 5.9 billion
from India in 2014–15, representing a significant growth of 16.0 per
cent over 2013–14.
• Exports to Malaysia increased significantly to US$ 2.1 billion in
2014–15, representing an increase of 130.8 per cent over 2013–14.
• The export of Indian engineering goods to Sri Lanka (US$ 3.6
billion), South Africa (US$1.9 billion), Mexico (US$1.9 billion),
Turkey (US$ 1.7 billion), Nepal (US$ 1.4 billion) , and Iran (US$ 1.2
billion), rose significantly in 2014–15.

13. Other factors influencing Engineering
sector
• the approval of significant number of special
economic zones (SEZs) across the country
• development of the Delhi Mumbai Industrial
Corridor (DMIC)
• Make in india

14. Major companies

15. Govt initiatives
• To boost the sector, the government has relaxed the excise duties on factory gate
tax, capital goods, consumer durables and vehicles.
• Reduced the basic customs duty from 10 % to 5 5on forged steel rings used in the
manufacture of bearings of wind operated electricity generators.
• to provide a level playing field to domestic and foreign private players bidding for
the government contracts in defence sector.
• These steps will also encourage participation of foreign Original Equipment
Manufacturers such as Boeing, Airbus, Lockheed Martin, BAE Systems, etc., in the
sector.
• Education: The government has also taken steps to improve the quality of
technical education in the engineering sector by allocating a sum of Rs 500 crore
(US$ 75.33 million) for setting up five more IITs in the states of Jammu,
Chhattisgarh, Goa, Andhra Pradesh and Kerala.
• Prime Minister, Mr Narendra Modi announced a partnership between Bloomberg
Philanthropies and the Ministry of Urban Development, Government of India, to
advance the "Smart Cities Initiative."

16. What next
• The engineering sector is a growing market. Spending
on engineering services is projected to increase to US$
1.1 trillion by 2020.
• The Union Budget 2016-17 has made record allocation
of Rs 221,246 Crore (US$ 33.07 billion) for several
infrastructure projects which are further expected to
provide a boost to the engineering sector.
• The industry can also look forward to deriving revenues
from newer services and from newer geographies with
Big Data, Cloud, M2M and Internet of Things becoming
a reality.

17. Major Trade shows
India