Submitted BY: Jatin Arora Mohit Gupta Mukul Gupta

Largest among industrial sectors in India. Categorized into two segments: heavy engineering and light engineering. Major End User are: power, infrastructure, steel, cement, petrochemicals, oil and gas, refineries, fertilizers, mining, railways, automobiles, and textiles. Employs over 4 million skilled and semi-skilled workers

Heavy Engineering
Transport Equipments Capital Goods Other Machineries

Light Engineering
Low Tech eg., castings, forgings, fasteners , etc., Highly sophisticated equipments Diagnostic Medical

Sub Sectors - Textile, Cement, Sugar, Rubber machinery Dairy, Mining, Machine tool ,Metallurgical etc.,

Sub Sectors - Medical /Surgical, Process control equipments, steel forgings, Ferrous castings, etc.,

Well developed demand conditions Indias labour cost advantage Growing capabilities of Indian engineering firms Preferred outsourcing destination Government initiatives with respect to power, infrastructure etc., Dilicensing , removal of tariff protection , promotion of SEZs

Key user industries

Illustration of Key user industries

Industrial Majors

Power Utilities

Indian Engineering Sector Growth

Retail Consumers

Government

COMPOSITION OF ENGINEERING EXPORTS

Management & Consultany Services 4%

Consumer durables 22%

Capital Goods 33%

SL. GROUP-WISE

EXPORT
2009-10 2010-11 Growth %

EXPORT A OF ENGINEERING GOODS & SERVICES DURING 2009-10 TO 2010-11

CAPITAL GOODS

16013.31 22396.69 5624.35 3460.85 7567.03 6441.62

39.86 34.54 86.13 56.10

DURABLES C NON-FERROUS METALS & PRODUCTS THEREOF D PRIMARY IRON & STEEL & ITEMS THEREOF
TOTAL

in US $ Million BValue CONSUMER

8640.14 13487.07

33738.65 49892.40

47.88

2 - 3 wheeler Aircraft & Spares Boiler & Parts Cement Mill Machinery Coastal Vessels & Ships Commercial Vehicles Cranes, Lifts & Winches Electric Power Equipments& Parts Electric Wires & cables

2009-10 589.09 1005.04 376.19 4.54 2554.31 3565.38 137.86 3222.59 287

2010-11 830.13 1689.05 476.48 4.86 4577.17 4966.57 163.11 3875.12 358.77

Growth % 40.92 68.06 26.66 7.00 79.19 39.30 18.32 20.25 25.01

Accumulator Air Compressor Automobile Parts Bicycle & Parts Cutting Tools Dry Batteries Electric Fan & Parts Electric Manufacturers N.O.S. Hand Tools I.C. Engine & Parts Instruments All Types

2009-10 93.07 107.21 1517.22 148.76 186.14 63 130.41 285.68 149.45 919.45 1034.8

2010-11 121.25 152.92 2439.20 220.46 266.94 102.01 170.88 360.75 249.23 1118.20 1264.48

Growth % 30.28 42.64 60.77 48.20 43.41 61.92 31.04 26.28 66.77 21.62 22.19

2009-10 Aluminium& Products Thereof 1042.08 Other Non Ferrous Metal & Products 2418.77

2010-11 1214.10 5227.52

Growth% 16.51 116.12

Bolts & Nuts (Fasteners) Bright Bars Electrodes Ferro Alloys Ferrous Holloware Ferrous industrial castings Other Steel Products N.O.S Prime Iron & Steels

2009-10 246.93 182.59 23.22 880.41 400.75 521.35 597.53 3282.63

2010-11 391.15 187.70 33.32 2010.96 490.38 757.56 748.15 4467.84

Growth % 58.40 2.80 43.49 128.41 22.36 45.31 25.21 36.11

Country China

Exports in 2011 (in USD Million) 7122.04

Change from 2010-11 390.08

USA
UAE Singapore

5721.63
3483.07 2510.83

70.40
73.23 23.23

Saudi Arabia

2109.18

200.49

Australia 1% Others 26% Asia 30%

N. America 16%
Europe 23%

Africa 4%

Emerging Destinations
Destinations BAHARAIN (232.19) TAIWAN (109.75) ISRAEL (105.85) CHILE (102.17) COLOMBIA (71.37) Export (2009-10) 50.26
93.57

(Figures in USD million)

74.74
73.57 90.03

153.85
148.74 154.28

Statistics Department, EEPC Head Office

Largest Section Among all industries. The estimated production was around 9 billion dollars. It employs around 5 million skilled and unskilled labour. Favorable Government Policies helps in growth of this Sector

Delicensed, with 100 percent FDI allowed Tariff protection withdrawn. Reduced customs duties of Engineering equipments. SEZ across the country.

Equipment manufacturers such as Bharat Earth Movers Limited (BEML), Siemens, Cummins India, ABB, etc Execution specialists such as Bharat Heavy Electricals Ltd.(BHEL), Larsen &Toubro (L&T), Engineers India, etc Niche players such as Thermax in environmental solutions, Voltas in electromechanical projects, ABB for automation technologies and so on ..

Source: Ministry of Heavy Industries as public enterprises

Cement machinery -18 Sugar machinery -27 Rubber machinery -19 Metallurgical machinery -39 Machine tool- 160 Material handling equipment -50 Mining machinery -32 Dairy machinery -16 Welded steel pipes & tubes- 123 Process control instrument -26 Antifriction roller bearing -19 Plain paper copier -12

Bhopal Ranipur Jhansi Vizag Chennai Panchkula Pune Ghaziabad Jameshdpur production

Gujarat is the most preferred state for the centers.

Stiff Competition Technological problems High cost of Industrial Inputs Barriers Infrastructural Bottlenecks High Transaction Cost

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2.

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Additional 2% bonus benefits over and above the existing benefits under Focus Product Scheme will significantly benefit Bicycle parts and Grinding Media Balls exporters. Additional items of Engineering, namely, Pipes & Tubes, Electric Generating Sets, Cast Articles of Iron & Steel, Ferro Manganese and Ferro Silicon shall now be entitled for benefit @ 2% under FPS. A number of Engineering items namely, Machine Tools, Compressors, Iron & Steel Structures including Transmission Towers and Scaffolding, LPG Cylinders, Ductile Tubes & Pipes shall now be entitled for benefits @ 2% of FOB value of exports to all markets under FPS instead of their exports to specific markets under MLFPS earlier.

The objective of ASIDE scheme is to establish a mechanism for involving the State Governments to participate in funding of infrastructure critical for growth of exports by providing export performance linked financial assistance to them. The specific purposes for which funds can be sanctioned and utilized under the Scheme are as follows :
Creation of new Export Promotion Industrial Parks/Zones (SEZs/Agri. Business Zones) and augmenting facilities in the existing ones. Setting up of electronics and other related infrastructure in export conclave. Equity participation in infrastructure projects including the setting up of SEZs. Meeting requirements of capital outlay of EPIPs/EPZs/SEZs. Development of complementary infrastructure such as, roads connecting the production centers with the ports, setting up of Inland Container Depots and Container Freight Stations.

 Zero Duty
Import of capital goods for pre-production, production and post-production at zero customs duty, subject to an export obligation equivalent to 6 times of duty saved on capital goods imported under EPCG scheme, to be fulfilled in 6 years reckoned from Authorization issue-date.

3% Duty
Concessional 3% duty EPCG scheme allows import of capital goods for preproduction, production and post-production at 3% customs duty, subject to an export obligation equivalent to 8 times of duty saved on capital goods imported under EPCG scheme, to be fulfilled in 8 years reckoned from Authorization issue date.

Marketing Development Assistance (MDA) Scheme is under operation through the Department of Commerce to support the under mentioned: (i) Assist exporters for export promotion activities abroad (ii) Assist Export Promotion Councils (EPCs) to undertake export promotion activities for their product(s) and commodities (iii) Assist approved organizations/trade bodies in undertaking exclusive nonrecurring innovative activities connected with export promotion efforts for their members (iv) Assist Focus export promotion programmes in specific regions abroad like FOCUS (LAC), Focus (Africa), Focus (CIS) and Focus (ASEAN + 2) programmes. (v) Residual essential activities connected with marketing promotion efforts abroad.

Objectives To promote Indias Export on sustained basis; Focus Product-Focus country approach; To evolve specific strategy for enhancement of export accessing new market or increasing share in existing market; Specific market, specific product approach through market study/survey

Additional benefit of 2% bonus, over and above the existing benefits of 2% under FPS. Some products added under FPS (at 8 digit level), which became entitled for benefits @ 2% of FOB value of exports to all markets.

The EHTP Scheme is a 100% Export Oriented Scheme for undertaking manufacturing of electronic hardware equipment/components and other items. in India. This scheme is unique in its nature as it focuses on one product/sector, i.e. Electronic Hardware. An EHTP unit is also allowed to manufacture items other than those specified in the approval letter, provided that such other items fall in the category of Electronic Hardware, the design and production facilities are common and have similar manufacturing process.

Activities to be funded under marketing project: -Opening of showrooms; -Opening of warehouses; - Display in international Dept. stores; - Publicity campaign and Brand promotion; - Participation in trade fair etc. abroad; - Research & Product development; - Reverse visits of the prominent buyers from project focus countries; - Export potential survey of the states; - Registration charges for product registration abroad for pharmaceuticals, bio- technology and agro-chemicals; - Testing charges for engineering products abroad; - Support cottage and handicrafts units; - Support recognised associations in industrial clusters for marketing aborad;

ISO 3269 ISO 228-1

EN-Fasteners - Acceptance InspectionThird Edition EN-Pipe Threads Where Pressure-Tight Joints Are Not Made on the Threads Part 1: Dimensions Tolerances and Designation-Fourth Edition EN-Rolling bearings - Dynamic load ratings and rating life-Second Edition EN-Plastics - Determination of the melt mass-flow rate (MFR) and the melt volume-flow rate (MVR) of thermoplastics-Fourth edition EN-Plastics - Symbols and Abbreviated Terms - Part 1: Basic Polymers and Their Special Characteristics-Third Edition EN-Plastics - Measurement of antibacterial activity on plastics surfacesFirst Edition

ISO 281 ISO 1133

ISO 1043-1

ISO 22196

ISO 3800

EN-Threaded Fasteners - Axial Load Fatigue Testing - Test Methods and Evaluation of Results First Edition; EN-Passenger car tyres Method for measuring relative wet grip performance Loaded new tyres-First Edition EN-Mechanical Properties of Fasteners Part 7: Torsional Test and Minimum Torques for Bolts and Screws with Nominal Diameters 1 mm to 10 mm-First Edition EN-Hexalobular internal driving feature for bolts and screws-Second Edition EN-Plastics - Determination of Flexural Properties-Fourth Edition; Amendment 1: 02/15/2004

ISO 23671

ISO 898-7

ISO 10664 ISO 178

Engineering Export Promtion Council Headquarters in Delhi Set up in 1955 under the sponsorship of Ministry of Commerce & Industry, Govt. of India, for export promotion of engineering goods, projects and services from India. Increased awareness on Indias rapid progress in the engineering sector Increased awareness on Indias rapid progress in the engineering sector,

During 2009-10, INDEE was organized at Caxias do Sul, Brazil; Jakarta, Indonesia; Bogota, Colombia; Cairo, Egypt & Bangkok, Thailand Last INDEE was in Casablanca, Morocco from 13 to 15 December 2012 Publicity & Promoting the Made in India brand

Strengths: Engineering is the largest sector in India. Demand Driven Industry. Vast Sector that ranges from mini projects to large collaborations. Excellent advancement in technologies. Availability of a abundant human resources . Geographically Situated at ideal locations.
Weakness: Long product development cycle. Unprofessional working style. Inadequate level of training of employees. Lack of professionalism at top management.

Opportunity: Huge potential for direct exports to neighboring countries. India is being looked upon as an outsourcing destination by global companies. The future of engineering sector is very promising. Power projects, other infrastructure development activities, industrial growth, and favorable policy regulations will drive growth in industries.
Threats: Exposure to global Market. Fluctuating raw material prices. Recession leading to delays/ cancellation of projects.

EEPC INDIA. (2008). Events. Available: http://www.eepcindia.org/index.asp. Last accessed 22 dec 2012. INDEE Exhibitions - EEPC INDIA. 2013. INDEE Exhibitions - EEPC INDIA. [ONLINE] Available at: http://www.eepcindia.org/indeeexhibitions.asp Foreign Trade Policy - EEPC INDIA. 2013. Foreign Trade Policy - EEPC INDIA. [ONLINE] Available at: http://www.eepcindia.org/for-tradepolicy-201011.asp. Drurys Engineering Quality Standards. 2013. Drurys Engineering Quality Standards. [ONLINE] Available at: http://www.drurys.co.uk/standards.htm. Press Coverage - EEPC INDIA. 2013. Press Coverage - EEPC INDIA. [ONLINE] Available at: http://www.eepcindia.org/press-coverage.asp