engineering sector of india

8/9/2019 Engineering Sector of India

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Group Presentation on:

The Engineering Sector of India


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Overview of IndiasEngineering sector

The Engineering sector is the largest sector in the overallindustrial segments in India. The sector employs over 4million skilled and semi-skilled workers (direct and indirect).It is a diverse industry with a number of segments, and canbe broadly categorized into two segments:

The Heavy Engineering Segment, and The Light Engineering Segment

The sector is relatively less fragmented at the top, as thecompetencies required are high, while it is highly

fragmented at the lower end (e.g. unbranded transformersfor the retail segment) and is dominated by smallerplayers.


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Broad Classification


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ajor Production Units and their vital sta


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Major Production Units and theirvital stats


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Trends in exports


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Graphical interpretation ofexport trends

Exports of engineering goodsfrom India have also been growingrapidly

40 percent of exports are fromSmall and Medium Enterprises(SMEs)

Capital goods account for 37percent of exports in the sector


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Several key segments havebeen experiencing strong

growth


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Size of key segmentsGrowth of key segments


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Export Statistics

EXPORT OF ENGINEERING GOODS & SE

SL. GROUP-WISE EXPORT


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A. CAPITALGOODS

2 3 wheeler

Aircraft &Spares

Boiler &Parts

Cement Mill Machinery

Coastal Vessels &Ships

Commercial Vehicles

Cranes, Lifts &Winches


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B. CONSUMERDURABLES

Accumulator

Air Compressor

Automobile Parts

Bicycle &Parts

CuttingTools

Dry Batteries


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C. NON -FERROUSMETALS&PRODUCTSTHEREOF

Aluminium&Products Thereof

Other NonFerrous Metal &Products

TOTALOF"C"

D. PRIMARYIRON&STEEL& ITEMS

Bolts&Nuts(Fasteners)

Bright Bars

Electrodes

FerroAlloys

FerrousHolloware

Ferrousindustrial castins


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Today , out of totalengineeringexports, capitalgoods & machineryaccount for around38% as againstaround 12% in theyear 1956-57.

R i i E t f


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Region wise Exports ofEngineering Goods and

ServicesThemainimporting

nationsin

clude:

USA

EUUAE

Japan

ChinaSing

apore

Malaysia

Indonesi

a

Singapor

e


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Engineering goodsaccount for one-fifth ofIndias export basket.

Engineering goods wasthe second-largestproduct group in Indiasexport basket in FY07 andcontributed around 14.9%of the total merchandiseexports at US$ 18.8billion.

Moreover as this sector

grew at a CAGR of around37.1% in the same period,it demonstrated Indiasgrowing significance asan engineeringoutsourcing destination

across the world,especially for transport


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Competitors to Indianengineering industry


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FTP Provisions


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Government initiatives

Recognizing the critical importance of the engineering sector, theGovernment of India has taken several initiatives over the years to helpthe sector grow:


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Quality standards

TCR can perform quality analysis (QA) on allengineering goods sourced from India and

validate them as per:

ASTM

BS

GS

JS

IS and other international standards.


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The sector is competitive, and investorsneed to have the right approach and focus

to succeed:

Porters 5 force model


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Problems and challenges facedby exporters

.


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References


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engineering sector of india

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