Engineering Exports Of Gujarat
Pramesh Nair & Bright Singh
Post Graduate Diploma in International Trade,
Ahmedabad Management Association
Under the Guidance of:
Dr. R. Chandran
GoG-AMA Centre for International Trade
Engineering industry in general
• Market Overview
• Robust Growth
• Competitive Advantage
• Factor Conditions
• Profile of Heavy and Light Engineering segments
• Future Outlook
Progress and Prospects of Indian Engineering Goods Exports
• Distinctive contribution to the export effort
• Item wise distribution or composition
• Destination of Indian engineering exports
• Engineering Services – The Eye of opportunity
• Problems of engineering exports
• Strategy for Export Promotion
• Conclusions and suggestions
Augmentation of Engineering Industries in Gujarat
• The Growth of Engineering Industry
• Factors responsible for the growth of Engineering Industry • Doing business in Gujarat
• Areas of Concern
CHAPTER - I
ENGINEERING INDUSTRY IN GENERAL
The engineering sector is the largest segment of Indian Industry
The engineering sector is the largest segment of the overall Indian industrial sector. India has a strong engineering and capital goods base. The important groups within the engineering industry include machinery & instruments, primary and semi finished iron & steel, steel bars & rods, non-ferrous metals, electronic goods and project exports. The engineering sector employs over 4 million skilled and semi-skilled workers (direct and indirect).
The sector can be categorized into heavy engineering and light 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. 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. The bulk of capital goods required for power projects, fertilizer, cement, steel and petrochemical plants and mining equipment are made in India. The country also makes construction machinery, equipment for irrigation projects, diesel engines, tractors, transport vehicles, cotton textile and sugar mill machinery.
The engineering industry has shown capacity to manufacture large-size plants and equipment for various sectors like power, fertilizer and cement. Lately, air pollution control equipment is also being made in the country. The heavy electrical industry in India meets the entire domestic demand.
A large number of multinational companies like Cummins, Alfa Laval, Sandwik Asia, etc. have also entered the engineering industry in India.
The heavy and light engineering segments in this sector can be further classified as shown in the table. As the sector demands a high level of capability and investment, it is dominated by large organized players.
Heavy Engineering Industry
|Industry segment |No. of organized players | |Cement machinery |18 | |Sugar machinery |27...