A PRESENTATION ON

ENGINEERING INDUSTRY
Submitted BY:
ARYA ELIZABETH K.
EMLIN MARY ALEXANDER
GAYATHRI G. S.
GHEETHU MARIA JOY
KAVITHA JOSHI
NEENU N.
PRASHANTH NAIR
SUMINA K. H.

INTRODUCTION

rigin and History

Engineering industry gained its importance in 1951.

Since the late 1980s, government of India shifted its focus from the macro economic policy tow
growth promotion.
During the 1990s major changes effected in trade and industrial policies.

A number of empirical studies have examined the impact of liberalisation on the Indian firm
general and the performance of capital goods sector in particular.

This industry has been severely affected since mid 1980s due to liberalisation policies like reducti
the tariff rates and liberal trade policy or import of second hand machinery (Desai 2001).

MARKET OVERVIEW
engineering sector is the largest segment of the overall Indian industrial sector.

a has a strong engineering and capital goods base.

ineering industry include machinery & instruments, primary and semi-finished iron & steel, steel bars & rods,
ous metals, electronic goods and project exports.
sector can be categorized into heavy engineering and light engineering segments.

ong the developing countries, India is a major exporter of heavy and light engineering goods, producing a
ge of items.
heavy electrical industry in India meets the entire domestic demand.

arge number of multinational companies like Cummins, Alfa Laval, Sandwik Asia etc. have also entered
ineering industry in India.

CLASSIFICATION OF ENGINEERING INDUSTRY

ts of Engineering Sector

vy engineering
t engineering

ngineering

Engineering industry in India manufactures a variety of products, with heavy engineering goods accounting for majorit
uction

t of the leading players in the heavy engineering goods segment manufacture high value heavy engineering goods using h
nology.

segment caters to the replacement market for few products such as low quality small bearings.
extile Industry ,Machinery Industry, Cement Machinery Industry ,Sugar Machinery Industry ,Rubber Machinery Industry

gineering

ufacturers of low engineering goods use medium to low-end technology.

segment is characterised by dominance of small and unorganised players, which manufacture low value- added products.

segment is also characterised by small capacities and high level of competition.

elded Steel Pipes, Medical and surgical equipments, industrial fasteners, sewing machines etc.

ENGINEERING INDUSTRY SWOT ANALYSIS

GROWTH AND DEVELOPMENT OF INDIAN ENGINEERING INDUSTRY

th in the domestic engineering sector has been fuelled by growth in key end user industries such as railways,
r and infrastructure.

important industries such as infrastructure, manufacturing, processing, and metallurgical are heavily depende
ngineering industry for their growth.

ently, Engineering contributes 12percent to the global Gross Domestic Product (GDP).

Indian Engineering industry is the largest among the industrial segments in the country and provides direct an
oyment to more than 4 million skilled and non-skilled professionals.

ndustry has demonstrated exceptional growth over the past five years due to major investments and p
tives by the Indian government and by domestic and foreign players.

al industry leaders are looking at this market as a manufacturing hub, owing to lower prices of raw material
ces, and the availability of a skilled labor force.

PRESENT STATUS OF ENGINERING INDUSTRY

PRESENT STATUS OF INDIAN ENGINEERING INDUSTRY

ently, Indias engineering industry accounts for 27 per cent of the total factories in the industri
r and represent 63 per cent of the overall foreign collaborations. It has emerged as the large
ibutor to the countrys total merchandise exports.

sector has a comparative advantage in terms of manufacturing costs, market knowledge,

nology and creativity.

inued growth of manufacturing sector and favorable regulatory policies would further propel the
ors growth.

engineering industry has been de-licensed and enjoys 100 per cent foreign direct investment
.

ther, the National Policy on Electronics is formulated by the Government of India to boost India's
ronics systems and design the manufacturing industry and improve its share in the global
et.

PRESENT STATUS OF INDIAN ENGINEERING INDUSTRY

continued.

neering sector is among the top two contributors to the total Indian export basket with total shipments of US
2012-13. During February 2014, the sectors exports stood at US$ 5.02 billion.

ployment oriented engineering sector, which encompasses a large number of micro, small and medium enterp
), would be contributing something like US$ 65 billion to the overall export shipment as targeted by the gover

ring exports to Indias Free Trade Agreement (FTA) partners such as Japan, South Korea, Sri Lanka and the Asso
east Asian Nations (ASEAN) bloc have witnessed robust growth.

ents to Japan grew 17 per cent during April-November, 2013-14 to US$ 568 million as compared to the same p
. Exports to South Korea increased by over 13 per cent to US$ 739 million during the period.

nited States (US) and Europe account for over 60 per cent of India's total engineering exports.

PROBLEMS OF ENGINEERING EXPORTS

Stiff competition.
Technological problems.
High cost of industrial inputs.
Barriers.
Infrastructural bottlenecks.
High transaction costs.

infrastructure

CONCLUSION

Demand in the engineering goods sector is currently propelled by the manufacturing, power and
mining industries. This demand is expected to rise, keeping in mind the governments initiatives for
infrastructure development. In addition, investments in power, oil and gas extraction, mining and
petrochemical are expected to provide a positive boost for the industry. Industrial growth and
development in the manufacturing industry will add to the momentum of the engineering goods
industry
With the governments initiatives for major capacity additions in the next five years, the demand
for power equipment will rise many-fold, adding to the enlargement of the industrys scope.
Largely because of cost effective labor and proactive government regulations, India is an
outsourcing hub. Conversely, there is a growing trend among the developed countries of
outsourcing the production, improvement and maintenance of machinery. Thus, India will be
genuinely benefitted in this regard.

REFERENCES

conomic survey 2013-14 , Planning Commission, Government of India

entral Statistical Organization, India

Department of industrial policy and promotion , India

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alakrishnan, P and M Suresh Babu (2003).Growth and Distribution in Indian Industry in the Nineties. Economi
litical Weekly, 38 (38): 3997-4005.

asant, Rakesh (1997). Technology Strategies of Large Enterprises in Indian Industry: SomeExplorations. World
evelopment, 25 (10): 1683-1700..

acobsson, Staffan (1991). Government policy and performance of the Indian engineering industry.Research Po
(1): 45-56