Engineering Exports from India

Submitted to: Prof. Navdeep Kaur

Submitted by: Sayarnil Basu [MBA-IB 3rd Sem]
 Engineering goods account for 25 per cent,
or one fourth of the country’s total merchandise exports.
Engineering Exports Promotion Council

• It is sponsored by the Ministry of Commerce & Industry

• It was set up in 1955
• It has a membership base of over 12,000 out of whom 60% are SMEs
• EEPC India organizes buyer-seller meets (BSM) to demonstrate the
capabilities of Indian engineering industry .
• India Engineering Exhibition is one of the largest expositions of
engineering.
• EEPC India, the aspirational target of Indian engineering exports is set as
USD 200 billion by 2025
• India's engineering exports, which contribute 25 per cent to the overall
merchandise shipments, are projected to touch about USD 80-82 billion in
the current financial year ending March 31
Marketing of Engineering Goods
• Trade fairs/ events
• 25 events scheduled from August 2019 to March 2020
• Europe, North America, Middle East, CIS, West African Nations, Latin
American Nations, ASEAN
• International Engineering Sourcing Show (IESS) has become one of
the signature shows in marketing ‘Brand India’ across the world.
• First conducted in 2012, next edition in 2020 at Coimbatore.
What is Engineering Goods?
• SALT; SULPHUR; EARTHS AND STONE; PLASTERING MATERIALS, LIME
AND CEMENT.
• ARTICLES OF STONE, PLASTER, CEMENT, ASBESTOS, MICA OR SIMILAR
MATERIALS.
• IRON AND STEEL, ARTICLES OF IRON OR STEEL
• Copper, Nickel, Zinc, Brass, Tin, and articles thereof
• NUCLEAR REACTORS, BOILERS, MACHINERY AND MECHANICAL
APPLIANCES
• ELECTRICAL MACHINERY AND EQUIPMENT AND PARTS THEREOF
What is Engineering Goods?
• RAILWAY OR TRAMWAY LOCOMOTIVES
• VEHICLES, AND PARTS AND ACCESSORIES THEREOF.
• AIRCRAFT, SPACECRAFT, AND PARTS THEREOF.
• SHIPS, BOATS AND FLOATING STRUCTURES.
• CLOCKS AND WATCHES AND PARTS THEREOF.
• MUSICAL INSTRUMENTS
• ARMS AND AMMUNITION
• FURNITURE, TOYS, GAMES AND SPORTS REQUISITES
COMPOSITION OF INDIAN ENGINEERING EXPORTS
REGION WISE EXPORTS OF INDIAN ENGINEERING GOODS
FOREIGN INVESTMENTS FLOWING IN: RISE IN
FDI INFLOWS (BN US$)
PRODUCT WISE EXPORT VALUATION(mn US $)

• 1. Iron and Steel and Products made of Iron and Steel- 14555
• 2. Non-Ferrous Metals and Products made of Non-Ferrous Metals- 10190
• 3. Industrial Machinery- 12622
• 5. Automobiles- 3076
• 6. Medical and Scientific instruments- 1650
• 7. Railway Transport- 250
• 8. OTHER MISC. ITEMS- 2470
• Total engineering exports from India- 76200
PRODUCT SECTOR OVERVIEW : PUMPS
• PUMPS MANUFACTURING CLUSTERS IN INDIA
• Coimbatore, Belgaum, Batala and Jalandhar, Kolhapur, Rajkot,
Ahmedabad, Hyderabad
• The market is worth over US$1.2 billion
• Annual growth 12-15% by 2020
• More than 4.5 million pumps are manufactured every year
• Exports are despatched to more than 150 countries
PRODUCT SECTOR OVERVIEW : PUMPS
PRODUCT SECTOR OVERVIEW :
ELECTRICAL MACHINERY, EQUIPMENTS & COMPONENTS
PRODUCT SECTOR OVERVIEW : ELECTRICAL
MACHINERY, EQUIPMENTS & COMPONENTS
India's Top 25 Export Destinations
• 1. USA 13. Malaysia 25. Mexico
• 2. UAE 14. Italy
• 3. China 15. Saudi Arabia
• 4. Hong Kong 16. Turkey
• 5. Singapore 17. Indonesia
• 6. United Kingdom 18. France
• 7. Bangladesh 19. Japan
• 8. Germany 20. Sri Lanka
• 9. Netherlands 21. South Korea
• 10. Nepal 22. Thailand
• 11. Belgium 23. Spain
• 12. Vietnam 24. South Africa
1. USA 2,774,826 11. BELGIUM 430,079
2. U ARAB EMTS 1,704,132 12. MALAYSIA 363,601

3. CHINA P RP 933,362 13. SAUDI ARAB 261,401

4. SINGAPORE 665,460 14. FRANCE 278,003
5. HONG KONG 851,298 15. IRAN 269,080
6. NETHERLAND 458,497 16. ITALY 313,787

7. UK 547,457 17. JAPAN 287,256

8. GERMANY 534,797 18. KOREA RP 309,947
9. BANGLADESH PR 421,150 19. VIETNAM SOC 376,390
REP

10. NEPAL 445,835 20. TURKEY 257,324

 20 Year Data ENGINEERING GOODS (bn US $)
Year Value %Growth Year Value %Growth
Apr-Mar 2000 4,386.01 Apr-Mar 2011 49,814.71 17.54

Apr-Mar 2001 5,673.08 29.34 Apr-Mar 2012 58,553.84 8.96

Apr-Mar 2002 5,746.73 1.30 Apr-Mar 2013 56,796.94 -0.03
Apr-Mar 2003 7,688.97 33.80 Apr-Mar 2014 56,038.54 -0.01
Apr-Mar 2004 10,516.38 36.77 Apr-Mar 2015 60,859.81 0.07
Apr-Mar 2005 15,383.02 46.28 Apr-Mar 2016 61,628.81 0.01
Apr-Mar 2006 19,303.23 25.48 Apr-Mar 2017 63,177.46 0.03
Apr-Mar 2007 26,506.08 37.31 Apr-Mar 2018 73,695.26 13.69
Apr-Mar 2008 33,736.81 27.28 Apr-Mar 2019
Apr-Mar 2009 40,486.81 20.01 Apr-Mar 2020 80000 projected
Apr-Mar 2010 32,554.30 -19.59
Export Promotion Schemes
• Merchandise Exports from India Scheme (MEIS)
• Under this scheme, exports of notified goods/ products to notified
markets are granted freely transferable duty credit scrips on realized
FOB value of exports.
• Such duty credit scrips can be used for payment of custom duties for
import of inputs or goods, payment of excise duty on domestic
procurement, payment of service tax and payment of custom duties.
Export Promotion Schemes
• Zero duty EPCG scheme
• Zero duty EPCG scheme allows import of capital goods for
preproduction, production and post production at zero Customs duty.
• The scheme can be taken both post exports and pre exports.
• Rebate of duty on “export goods” and “material” used in
manufacture of such goods
• Under this, rebate of duty paid on excisable goods exported or duty
paid on the material used in manufacture of such export goods may
be claimed
Problems Faced
• Global protectionist measures
• Withdrawal of Generalised System of Preferences (GSP) by US
• Adverse impact on exports, to the tune of 3-5 per cent
• Loss of buyer confidence and a possible higher duty
• High steel prices of Indian Steel
• Sanctions on Iran and the geo-political tensions
Strategies adopted

• High-voltage technology is being developed in the Electrical

Equipment industry, for economical power transmission.
• Promotion of R&D – The Government is helping companies enhance
the level of research to match the best in the world.
• FDI policy – 100% FDI has been allowed under the automatic route in
the Electrical Machinery sector
• SEZ – The Government has approved 15 SEZs for the engineering
sector across the country.
References
• DGFT
• EEPC
• Ministry of Commerce and Industry, DEPARTMENT OF COMMERCE
• INDIAN TRADE PORTAL
• IBEF
• WTO