Export Performance of

Engineering Products in
India

Submitted By:
Nainika Gupta Submitted To:
Roll Number : !6 Dr. Navdeep
 Contents
• What are Engineering Products?
• The Engineering Sector in India
• World Scenario : Where do we stand?
• The Past, Present and Future of Engineering
Product Exports
• Potential Markets
•Advantages and Disadvantages
• Porter’s 5 Forces Framework Analysis
• Engineering Export Promotion Council of
India
• Strategies to Grow
• Conclusion
What are Engineering products?
Engineering Products is a term used for all
the engineering machines and systems
along with all the products, components and
intermediaries that goes into their
manufacturing.
What are Engineering products?
 Heavy Electrical

Boilers Turbines and Transformers

Steam Generators

Switchgear and
Controlgear
Heavy Engineering and Machine Tools

Machine Tools Textile Machinery Cement Machinery

Material Handling
Equipment
 Heavy Engineering and Machine Tools

Plastic Processing Dies, Moulds and Process Plant

Machinery Tools Industry Equipment

Earth Moving,
Mining and
Construction
Equipment
 Automotive

Passenger and Auto Components

Utility Vehicles

Agriculture
Machinery
Light Engineering

Medical and Surgical Equipment

Industrial
Fasteners
 The Engineering Sector in India
• The Indian Engineering sector has witnessed a remarkable
growth over the last few years driven by
• increased investments in infrastructure
• industrial production.

•The capital goods & engineering turnover in India is

expected to reach US$ 125.4 billion by FY17.
• The sector has been de-licensed and enjoys 100 per cent
FDI.

• The GOI is planning to merge 6 engineering consulting PSUs

to create a mega consultancy firm that can compete with the
likes of Bechtel of the US and domestic majors like Larsen &
Toubro (L&T).
Top 5 Players of the Segment
Share of Major Item Groups in Total Exports
 World Scenario : Where do we Stand?
• The Engineering and construction industry accounts for
around one-tenth of the world’s GDP and 7% of the world’s
employment.
• The US market still dominates the global scene as the
largest national construction market, representing 25 per
cent of the world total. Japan is second, followed by China.
• In the exports, India’s position is not very encouraging
•India’s top exporting products include engineering and
petroleum products, but it’s share in global market is very
low.
•The global engineering trade is dominated by China with
12.6% as compared to India’s 1.2%.
•India’s exports are mainly concentrated in the low and
medium technology products (high-tech with a share of
6%).
Past of Engineering Segment in India
Year Value (in Rs. Crore)
1985-86 1095 160000
1986-87 1150
1987-88 1105 140000
1988-89 1588
1989-90 2350 120000
1990-91 3250
1991-92 5025 100000
1992-93 6780
1993-94 8795 80000
1994-95 9825
1995-96 12734 60000
1996-97 12075
1997-98 14890 40000
1998-99 14751
1999-00 19654 20000
2000-01 27627
2001-02 28497 0
2002-03 38093
1985-86
1986-87
1987-88

1989-90
1990-91
1991-92
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
1988-89

2003-04 52946
2004-05 71411
2005-06 70648
2006-07 104232 Source : Centre for Industrial &
2007-08 136114 Economic Research
Past of Engineering Segment in India

Source: www.ibef.org, Reserve Bank of India, EEPC, Aranca

Research
Past of Engineering Segment in India

Source : India’s Foreign Trade Performance Document

Present of Engineering Segment in India
• Engineering exports from India stood at US$ 65.23
billion in FY 2016-17.

• Top ten importers of Indian engineering products

during FY 2016-17 were
• US (US$ 7.06 billion)
• UAE (US$ 4.03 billion)
• Singapore (US$ 2.80 billion)
• UK (US$ 2.48 billion)
• Mexico (US$ 2.45 billion)
• Malaysia (US$ 2.39 billion)
• Germany (US$ 2.21 billion)
• Nepal (US$ 2.16 billion)
• Italy (US$ 2.08 billion)
• Bangladesh (US$ 1.99 billion).
 Present of Engineering Segment
• The export of engineering goods grew by 14.7 per cent to
reach US$ 70 billion in FY 2014-15.
•The EU, ASEAN+2 and North America recorded the highest
shipment of engineering products from India, with a share of
21 per cent, 16 per cent and 15 per cent respectively in total
engineering exports in FY 2016-17.
• During FY 2016-17, the top 25 nations out of 228 export
destinations accounted for around 74.3 per cent of India’s
overall engineering exports.
• India became a permanent member of the Washington
Accord (WA) in June 2014. The country is now a part of an
exclusive group of 17 countries who are permanent signatories
of the WA, an elite international agreement on engineering
studies and mobility of engineers.
Present of Engineering Segment in India

Source: www.ibef.org, EEPC, Department of Commerce

and Aranca Research
Future of Engineering Segment in India

Source: www.ibef.org
Future of Engineering Segment in India

Source: www.ibef.org
Potential Markets
The Advantages in India
 The Disadvantages in India

• Less focus on high technology Products

• Competition from technology giant countries
such as China, Germany etc.
• The Indian products are more of followers
rather than being the ‘leaders’ (Report from
KPMG and EEPC)
• Narrow focus on regional integration
• Nature of trade agreements
• Higher customer-orientation
Engineering Export Promotion Council
of India (EEPC)
• EEPC India is the premier trade and investment
promotion organization in India, sponsored by the
Ministry of Commerce & Industry, Government of India
and caters to the Indian engineering sector.

• As an advisory body it actively contributes to the

policies of Government of India and acts as an interface
between the engineering industry and the Government.

• Set up in 1955, EEPC India now has a membership base

of over 13,000 out of whom 60% are SMEs.
 Key Objectives
• To support, protect, maintain, increase and promote the
exports of engineering goods.
•To keep in constant communication with Chambers of
Commerce and other mercantile & public bodies throughout the
world with a view to taking appropriate and necessary
measures for maintaining or increasing the exports of
engineering goods
• To advise or represent to government, Local Authorities and
public bodies on the policies and other measures
• Upgradation of technology in order to boost India’s
engineering exports and establishing synergy between industry
and academia
•To prepare, edit, print, publish, issue, acquire and circulate
books, papers, periodicals, gazettes, circulars and other
literatures treating or bearing upon industry, trade or
commerce, pertaining to engineering goods.
 Administrative Framework
• EEPC India was granted autonomy in its administrative
functioning in 1997-98.
•It has pan India presence operating through four
regional offices in New Delhi, Mumbai, Chennai and
Kolkata and four sub-regional offices in Jalandhar,
Ahmedabad, Bangalore and Hyderabad besides the Head
Office in Kolkata and the Territorial Division in New
Delhi.
•It is a Section 8 company (Erstwhile Section 25) limited
by guarantee under Companies Act and it is managed by
its Boards of Directors (i.e. Working Committee).
•In terms of Income Tax Act, EEPC India is registered as
a charitable institution
 Functions Performed by EEPC

• Promotional Activities Introduced by EEPC:

• India Engineering Exhibition
• Buyer- Seller Meet
• India Pavilion in International Exhibitions and Trade Fairs
• International Engineering Sourcing Show
• Policy Advocacy
• Policy Recommendations
•Dissemination of Information
• Member Servicing
• Some new Initiatives
• Standards and Accreditations
• Technology Up gradations
•Brand India Engineering
Porter’s 5 Forces Framework Analysis
Strategies to Grow
 Conclusion
The Engineering segment is crucial for the
overall growth and development of the
country. The segment holds an important
place in the country’s export but it’s share in
world trade is a meagre 1.2%. Nevertheless,
the country can discount upon its
demographic dividend, innovation and
increasing development in infrastructure and
electronical systems
THANK
YOU