IMPORT-EXPORT SCENARIO IN INDIA

Share of Engineering goods in Exports is around 36%

Share of manufacturing is slated to move from 15%
to 25% by 2022
SIZE US$1.0 Trillion by 2025 (Mc-Kinsay)
Manufactured goods export is estimated to be USD
184 billion
Capital goods business size of Rs 1.85 Trillion
Import Intensity across Capital Goods Sectors (import
content in standard & hi-tech machinery)
Sl.
No.

1
2
3
4
5
6
7
8

Sectors

Earth moving
Textile M/c
M/c Tools
Heavy
Electricals
Plastic M/c
Process Plants
Metallurgical
M/c
Dies & Moulds

Import of
standard
machinery
(in %)
35
12
30
26

Import of hitech
machinery
(in %)
78
27
40
37

12
10
15

22
30
35

15

15

Source: Recommendations for 12th Five Year Plan for Capital

Goods & Engineering Sector

Share in Global Exports (2010) for India

Sl.
No.
1
2
3
4
5
6
7

Sectors
Earth moving &
mining Equipment
Textile M/c
M/c Tools
Heavy Electrical
Machinery
Engineering Goods
Process Plants &
Equipment
Metallurgical M/c

Share in Global
Export (in %)
0.6
0.5
0.1
0.4
0.6
0.5
0.6

Source: Recommendations for 12th Five Year Plan for Capital

Goods & Engineering Sector

Sector wise Data:

o Machine Tools: Export is around 2.5% of the
production which is not significant. During the last
decade, import has gone up to 65% of total
machine tool consumption which also includes
machine tools required by defence. The market
share of domestic production is around 35%.
Exports are projected to grow at 25% CAGR during
the next 5 year plan, whereas imports are
estimated to grow at a CAGR of 6.7%.
o Plastic Processing Machinery: Import is estimated to
be Rs 1447Crore and constitute 37.5% of total
domestic demand. Comparatively the exports have
grown at slower pace with a CAGR of 9.4%.

o Earth moving and mining equipment: Construction and

Mining industries in India have exported a wide
range of machinery to countries in Africa,
Indonesia, Malaysia and South America and the
value of export is about Rs. 228 Crore during 201011.The export effort is led by M/s BEML Limited (a
CPSE) which contributed about Rs. 200 Crore in
Mining and Construction machinery exports in the
financial year 2009-10. Export has grown at CAGR
of 6.3% over the last six years. Direct import of
machinery by projects and mine operators and
construction contractors taking advantage of the
favorable duty structure is to the tune of
Rs.7395Cr. in 2010-11.
o Heavy Electrical and power plant equipment: Exports
stand at Rs 20,351Crore in 2010-11 and have
grown at a CAGR of17.6%, whereas Rs 31,769Crore
worth of electrical equipment is imported and
imports have grown at a CAGR of 22.8%.These
equipments are primarily hi tech equipments.
o Metallurgical machinery: Imports of metallurgical
machinery, which were Rs936Crore in 2004-05,
have jumped to Rs. 4346Crorein 2010-11, at a
CAGR of 29%. It is a matter of concern that, on an
average, about 81% of the metallurgical machinery
used in the country is being imported. Exports
have grown from Rs. 436 Crore in 2004-05 to Rs.

986 Crore in 2008-09and the fell to Rs. 483 Crore

in 2010-11.
o Textile Machinery: The exports stood at Rs.650 crore
(2010-11) and growing at a CAGR of 11.51%
whereas imports stood at Rs.5000 crore (2010-11)
and growing at a CAGR of 7.18%.
o Process Plant Equipment: Exports to the tune of
Rs.3194 crore during 2010-11 have been realized
for major equipments covering Fertilizers, Refinery,
Petrochemicals, Oil and gas sectors etc. and
growing at a CAGR of 18.3%. Imports stood at
Rs.1548 crore during 2010-11 and growing at a
CAGR of 16.5%. The exports are expected to grow
at a CAGR of 18.3% and will touch the figure of
Rs.8750 crore by 2016-17. The import level is
expected to be at Rs.3868 crore by 2016-17 with a
CAGR of 16.5%.
o Engineering Goods: The export for the sector is
around Rs 18,526Crore during the year 2010-11.
Overall, 18.5% of the domestic production is
exported. The import for the sector is estimated to
be around Rs 28,155Croreand they meet 25.5% of
domestic demand.