Engineering goods

1. ENGINEERING GOODS www.studsplanet.com

2. INTRODUCTION The Engineering sector is the largest segment of the overall Indian industrial sector. India has a strong engineering and capital goods base. The engineering sector employs over 4 million skilled and semi-skilled workers (direct and indirect). Engineering goods include metal products , industrial machinery and equipment , auto and its components , and transport equipment . www.studsplanet.com

3. The sector can be categorized into Heavy engineering segments L ight engineering segments. Heavy engineering segment forms the majority of the engineering sector in India. In the year 2003-04, out of the total engineering production of US$ 22 billion, the heavy engineering market contributed over 80 per cent with the light engineering segment accounting for the remaining. www.studsplanet.com www.studsplanet.com

4. India has a well-developed and diversified industrial machinery/ capital base capable of manufacturing the entire range of industrial machinery. The industry has also managed to successfully develop advanced manufacturing technology over the years. Among the developing countries, India is a major exporter of heavy and light engineering goods, producing a wide range of items. www.studsplanet.com

5. The engineering industry in India manufactures a wide range of products, with heavy engineering goods accounting for bulk of the production. Most of the leading players are engaged in the production of Heavy engineering goods and mainly produces high-value products using high-end technology. Requirement of high level of capital investment poses as a major entry barrier for the leading players. Consequently , the small and unorganized firms have a small market presence. www.studsplanet.com

6. The Light engineering goods segment , on the other hand, uses medium to low-end technology. Entry barrier is low on account of the comparatively lower requirement of capital and technology. This segment is characterized by the dominance of small and unorganized players which manufacture low-value added products. However, there are few medium and large scale firms which manufacture high-value added products. www.studsplanet.com

7. Classification of the Engineering Sector in India www.studsplanet.com

8. Heavy Engg Industry Capital requirement is more. P roduces high-value products. Latest high-end technology. M ajor entry barrier is the investment of the company. Competition from Foreign players. www.studsplanet.com

9. The Heavy Electrical Industry can be classified into the following product categories: Turbines and Generator Sets Boilers Transformers Switchgear and Control Gear Electrical Furnaces Shunting Locomotives www.studsplanet.com

10. Light Engg Industry Capital requirement is relatively lower Competition in the local market is high Technologically weaker. The sector also includes products such as bearings, steel pipes and tubes, etc. Most of the products in the light engineering industry serve as inputs for the capital goods industry. www.studsplanet.com

11. The major sub-segments within this industry are: Medical and Surgical Instruments Process Control Instruments Antifriction roller bearing Typewriters  Bicycle Industry Sewing Machines Plain Paper Copier www.studsplanet.com

12. Major players in Engg industry:- BHEL HAL HMT L&T Crompton greaves K irloskar oil engines ltd S iemens and etc. www.studsplanet.com

13. FDI Inflows in the Engineering Sector – Aug 91 to Dec 06 www.studsplanet.com

14. SOMETHING ABOUT EXPORTS OF ENGGENIERRING GOODS www.studsplanet.com

15. Engineering Export Promotion Council (EEPC) EEPC was set up in 1955 under the sponsorship of Ministry of Commerce, Govt. of India, for export promotion of engineering goods, projects and services from India. Initially started with a few hundreds of engineering units as an small outfit, with a passage of time it has grown to be the largest Export Promotion Council having membership of nearly 12,000 from amongst large Corporate Houses, Star Trading Houses, SME, etc. Out of the total membership of the Council, 60% constitutes the SMEs.      www.studsplanet.com

16. Engineering exports from India has been steadily growing and the performance has probably exceeded all expectations ever since the birth of the Council. Apart from being one of the largest stakeholders in the total exports out of India, – the engineering exporters are the foremost net foreign exchange earner in the country. www.studsplanet.com

17. Export Performance India's engineering exports registered the highest ever growth of about 85 per cent to USD 60.1 billion in 2010-11. During 2009-10, the exports were USD 32.5 billion, according to EEPC data. The US accounts for 30 per cent of the country's total engineering exports. www.studsplanet.com

18. India's total exports in 2010-11 stood at USD 245.9 billion , the highest ever since Independence . Out of which engineering goods exports accounts for $60.1 billion i.e. almost 40% of total I ndia’s exports www.studsplanet.com

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