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EXPORT-IMPORT BANK OF INDIA

OCCASIONAL PAPER NO. 124

INDIAN CAPITAL GOODS INDUSTRY -

A SECTOR STUDY

EXIM Bank’s Occasional Paper Series is an attempt to disseminate the findings of

research studies carried out in the Bank. The results of research studies can interest
exporters, policy makers, industrialists, export promotion agencies as well as
researchers. However, views expressed do not necessarily reflect those of the Bank.
While reasonable care has been taken to ensure authenticity of information and data,
EXIM Bank accepts no responsibility for authenticity, accuracy or completeness of such
items.

© Export-Import Bank of India

Published by Quest Publications
June 2008

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CONTENTS

Page No.
List of Tables 5
List of Exhibits 9
List of Boxes 9
Executive Summary 11
1. Introduction 28
2. Global Scenario 30
3. Capital Goods Industry in India 38
4. Exim Bank’s Support to Indian Machine tools Sector: 61
Case Study
5. Indian Capital Goods Industry: Market Analysis and 65
Export Potential
6. Challenges and Strategies 107
Annexure
1. List of Capital Goods Items Covered in Index of 116
Industrial Production
2. Shipment of Textile Machinery: Various Segments 117
3. India’s Export, Import, and Export-Import Ratio of 118
Select Machine Tools
4. India’s Export, Import, and Export-Import Ratio of 119
Select Textile Machinery
5. India’s Export, Import, and Export-Import Ratio of 120
Select Construction and Mining Machinery
6. India’s Export, Import, and Export-Import Ratio of 121
Select Process Plant Machinery
7. India’s Export, Import, and Export-Import Ratio of 121
Select Electrical Machinery

Project Team:
Mr. S. Prahalathan, General Manager, Research and Planning Group
Ms. Renuka Vijay, Manager, Research and Planning Group

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List of Tables
Table Title Pg. No.
No.
1. World Production of Machine Tools –2007 33
2. World Consumption of Machine Tools 33
3. World Export of Machine Tools 34
4. World Import of Machine Tools 35
5. FDI Inflows in Select Capital Goods Sector in India 40
6. Production of Machine Tools in India 42
7. Export of Machine Tools from India 42
8. Trends in Production of Textile Machinery in India 44
9. Indian Construction and Mining Machinery: Industry Size 47
10. Market Size and Leading Players: Select Segments of 48
Construction and Mining Machinery (2006-07)
11. Export Performance of Select Construction and Mining 48
Machinery (2006-07)
12. Market Size and Leading Players in Process Plants, 50
Machinery and Equipments
13. Export of Select Process Plant Equipments / 51
Machinery from India (2006-07)
14. Market Size and Leading Players in Transformer Industry 52
15. India’s Export of Electric Transformers, Static Converters 53
and Inductors - HS Code 8504 (2006-07)
16. India’s Import of Electric Transformers, Static Converters and 54
Inductors - HS Code 8504 (2006-07)
17. Market Size and Leading Players in Switchgear Industry 55
18. India’s Export of Switching and Protecting Electrical Circuits / 55
Apparatus in (2006-07)
19. India’s Import of Switching and Protecting Electrical Circuits / 56
Apparatus (2006-07)
20. Market Size and Leading Players in Electric Capacitor Industry 57
21. India’s Export of Electric Capacitors (2006-07) 57
22. India’s Import of Electric Capacitors (2006-07) 58
23. Market Size and Leading Players in Motors and Generators 59
24. India’s Export of Electric Motors and Generators (2006-07) 59
25. India’s Import of Electric Motors and Generators (2006-07) 60
26. World Import of Select Machine Tools 66
27. Market Analysis for Machine Tools Under HS Code 8462 67
28. Market Analysis for Machine Tools Under HS Code 8467 68
29. Market Analysis for Machine Tools Under HS Code 8457 69
30. Market Analysis for Machine Tools Under HS Code 8465 70

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Table Title Pg. No.

No.
31. Market Analysis for Machine Tools Under HS Code 8458 71
32. Market Analysis for Machine Tools Under HS Code 8460 72
33. Market Analysis for Machine Tools Under HS Code 8464 73
34. Market Analysis for Machine Tools Under HS Code 8459 74
35. Market Analysis for Machine Tools Under HS Code 8461 74
36. World Import of Select Textile Machinery 75
37. Market Analysis for Textile Machinery Under HS Code 8450 76
38. Market Analysis for Textile Machinery Under HS Code 8451 77
39. Market Analysis for Textile Machinery Under HS Code 8448 78
40. Market Analysis for Textile Machinery Under HS Code 8445 79
41. Market Analysis for Textile Machinery Under HS Code 8447 79
42. Market Analysis for Textile Machinery Under HS Code 8446 80
43. World Import of Select Construction and Mining Machinery 81
44. Market Analysis for Construction and Mining Machinery 82
Under HS Code 8429
45. Market Analysis for Construction and Mining Machinery 82
Under HS Code 8428
46. Market Analysis for Construction and Mining Machinery 83
Under HS Code 8427
47. Market Analysis for Construction and Mining Machinery 84
Under HS Code 8426
48. Market Analysis for Construction and Mining Machinery 85
Under HS Code 8430
49. Market Analysis for Construction and Mining Machinery 85
Under HS Code 8425
50. World Import of Select Process Plant Machinery 87
51. Market Analysis for Process Plant Machinery 88
Under HS Code 8421
52. Market Analysis for Process Plant Machinery 89
Under HS Code 8418
53. Market Analysis for Process Plant Machinery 90
Under HS Code 8419
54. Market Analysis for Process Plant Machinery 90
Under HS Code 8438
55. Market Analysis for Process Plant Machinery 91
Under HS Code 8403
56. Market Analysis for Process Plant Machinery 92
Under HS Code 8455

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Table Title Pg. No.

No.

57. Market Analysis for Process Plant Machinery 93

Under HS Code 8417
58. Market Analysis for Process Plant Machinery 93
Under HS Code 8402
59. Market Analysis for Process Plant Machinery 94
Under HS Code 8454
60. Market Analysis for Process Plant Machinery 95
Under HS Code 8416
61. Market Analysis for Process Plant Machinery 96
Under HS Code 8420
62. Market Analysis for Process Plant Machinery 97
Under HS Code 8404
63. Market Analysis for Process Plant Machinery 98
Under HS Code 8410
64. Market Analysis for Process Plant Machinery 98
Under HS Code 8435
65. World Import of Select Electrical Machinery 99
66. Market Analysis for Transformers Under HS Code 8504 100
67. Market Analysis for Switchgears / Control gears 101
(exceeding 1000v) Under HS Code 8535
68. Market Analysis for Switchgears / Control gears (below 1000v) 102
Under HS Code 8536
69. Market Analysis for Electric Capacitors Under HS Code 8532 103
70. Market Analysis for Motors and Generators Under HS Code 8501 103
71. Market Analysis for Electric Generating Sets Under HS Code 8502 104
72. Trends in Licenses Issued under EPCG Scheme 108

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List of Exhibits
No. Title Pg. No.

1. Leading Producers of Electrical Machinery and Apparatus (ISIC 31) 30

2. Leading Producers of Other Machinery and Equipments (ISIC 29) 31
3. Revenue Generation and Growth in Global Capital Goods Industry 32
4. Global Construction and Mining Machinery Industry: 36
Value & Growth
5. Global Market for Industrial Machinery 37
6. Movement of Index of Capital Goods Industry vis-à-vis IIP in India 39
7. Movement in Production Index of Sub-Segments of Capital 39
Goods Industry
8. Classification of Indian Machine Tools Sector 40
9. Production and Export Performance of Indian Machine 41
Tools Sector
10. Major Export Destinations of Machine Tools from India (2006-07) 43
11. Textile Machinery – Trends in Capacity, Production and Capacity 44
Utilization
12. Export and Import of Textile Machinery from India 45
13. Segment wise Import of Textile Machinery in India 45
14. Segment-wise Export of Textile Machinery from India 46
15. Structure of the Electric Equipment Industry 52
16. Production and Export Performance of Indian Machine Tools Sector 63

List of Boxes
No. Title Pg. No.

1. Lines of Credit : A Market Entry Mechanism for 112

Capital Goods Industry
2. Assessment of Conformity Standards for Machineries 113
in USA and Europe

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EXECUTIVE SUMMARY
INTRODUCTION
Capital goods industry is the
backbone of the manufacturing
activity. A vibrant capital goods
industry is a pre-requisite to propel
the growth of the manufacturing
activity in any country.
A study commissioned by the
Government of India1 has defined
capital goods as plant machineries
for agricultural, industrial and
commercial segments of economic
activities that have economic asset
life of over 3 years.
Considering the list of items
covered under the head ‘capital
goods’ in calculation of IIP, this study
has analysed major segments such
as machine tools, textile machinery,
electrical machinery, earthmoving
and construction machinery, and
process plant equipments.
GLOBAL SCENARIO
In value terms, the global capital
goods industry is estimated to have
generated total revenue of US $ 4.5
trillion in 2006, according to a report
1 Department of Industrial Policy and Promotion, Ministry of Commerce and
Industry, Government of India.
2 WTO statistics
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by Datamonitor. The capital goods
industry has seen fluctuations in its
growth rate over the past few years
and experienced a CAGR of 2.7%
during the period 2002-2006. United
States is the major country
accounting for 31% of the global
market value in 2006. Europe as a
region accounted for around 28%,
followed by the Asia-Pacific region
(27%). Globally, trade in capital
goods2 was valued at over US $
1.5 trillion in 2006. Thus, the capital
goods trade accounts for 12% in
world merchandise trade and
17.5% in world trade in
manufactures. The share of exports
in total world production is
estimated to be one-third. Germany
is the largest exporter of capital
goods in the world accounting for
13% of global exports in 2006.
China and the USA come next with
shares of 12% and 11%,
respectively.
According to a study by United
Nations Industrial Development
Organisation (UNIDO), Japan is the
largest manufacturer of electrical
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machinery and apparatus (ISIC
Code 31) in 2005, with a share of
55.2%. Other major producers were
USA (10.0%), China (8.9%),
Germany (6.9%) and France (2.6%).
India holds a share of 1.7% in global
production of electrical machinery
and apparatus in 2005. Amongst
developing countries, China is the
largest producer with a share of 55%
in cumulative production of
developing countries, followed by
India with a share of 10.2%, and
Brazil (7.2%).
In the case of other machinery
and equipments (ISIC 29), which
mainly consisted of general purpose
machinery (engines, turbines,
pumps, compressors, taps, valves,
bearings, gears, ovens, furnaces,
lifting and handling equipments) and
special purpose machinery (such as
agricultural machinery, machine
tools, metallurgical machinery,
mining / quarrying / construction
machinery, textile / leather
machinery, and food processing
machinery), USA is the world’s
leading producer with a share of
19.4% in world production in 2005,
followed by Japan (15.6%),
Germany (14.9%) and China (7.3%).
India is ranked at 15th position in
world production with a share of
1.4%. Amongst developing
countries, China is the major
producer of non-electrical machinery
item (ISIC 29) with a share of 33.8%
in 2005. India is fourth largest
manufacturer with a share of 6.7%
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in the total production of developing
countries.
Machine Tools
The total production of machine
tools by the top 29 global producers
was more than US $ 70 billion in
2007, experiencing a growth of
18% over the previous year. Japan
is the largest producer of machine
tools accounting for 20% of the
world production. Other major
producers are Germany (18%),
China (14%), Italy (10%), Korea
(6.5%) and Taiwan (6%).
In terms of consumption of
machine tools, China tops the list
with total consumption worth nearly
US $ 13 billion, showing a growth of
20% over the previous year. Japan
and USA comes next with a
consumption level of more than US$
7 billion and US$ 6 billion
respectively. The consumption level
for India is around US$ 1 billion, thus
being the 11th largest consumer of
machine tools.
World export of machine tools is
estimated to be over US $ 40 billion
in 2007, a growth of 18% over the
previous year. The export orientation
of global machine tool industry thus
works out to over 50% in 2007.
Germany is the largest exporter of
machine tools in the world; exporting
machine tools valued more than US$
9 billion in 2007. Germany exported
over 70% of its production in 2007.
Other major exporters include Japan

(US $ 7.6 billion), Italy (US $ 4.2
billion), Taiwan (US $ 3.4 billion) and
Switzerland (US $ 2.5 billion).
As far as the import is
concerned, China leads the world,
with an estimated import value of US
$ 6.9 billon in 2007. The United
States (US $ 4.4 billion), Germany
(US $ 3.7 billion) and Taiwan (US $
2.8 billion) are other major importers.
Amongst developing countries,
Mexico and India are emerging as
major importers of machine tools.
Construction and Mining
Machinery
Global construction and mining
machinery industry3 is estimated to
have generated a total revenue of
US $ 113 billion in 2006. The
industry had experienced several
years of decline in growth, since
the beginning of the decade, but
picked up in recent years. The
industry experienced a 7% growth
in the year 2005, which, however,
came down to 4% in 2006. The
CAGR for the industry during the
period 2002-06 stood at 4.7%.
Construction sector witnessed
growth both in developed and
developing countries during this
period. In the developed countries,
such as USA and Europe, the growth
in construction activity was fuelled by
increased demand for new office
space. In developing countries of
3 Includes construction machinery, farm machinery and heavy trucks.
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Asia-Pacific and Eastern European
region investment in infrastructure
increased substantially. Increasing
growth in extractive activities in Africa
region also led the growth in the
global construction and mining
industry. USA dominates the global
construction machinery industry,
accounting for almost 39% of the
world market. Asia-pacific (30%) is
the second largest region, followed
by Europe (28%).
Industrial Machinery
World market for industrial
machinery, equipment and supplies
is estimated to be US $ 345 billion
in 2006. Asia is the leading market
for industrial machinery accounting
for around 32% (US $ 109 billion)
of world market in 2006. North
America and Europe are the other
major markets, accounting for 25%
share each in the world industrial
machinery market and the industrial
machinery market is expected to
cross US $ 500 billion in 2011, a
CAGR of 8%.
CAPITAL GOODS INDUSTRY
IN INDIA
The capital goods industry is the
backbone of India’s manufacturing
sector. India produces wide range
capital goods, including machinery
and machine tools. Some of the
prominent capital goods produced
in India include heavy electrical
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machinery, textile machinery,
machine tools, earthmoving and
construction equipment including
mining equipment, road
construction equipment, material
handling equipment, oil & gas
exploration equipment, sugar
machinery, food processing and
packaging machinery, railway
equipment, metallurgical
equipment, cement machinery,
rubber machinery, process plants
machinery & equipments, paper &
pulp machinery, printing machinery,
dairy machinery, industrial
refrigeration, industrial furnaces etc.
Capacity creation in the Indian
capital goods industry has been
growing, since liberalization, and in
tune with the growth in industry.
Cumulative foreign direct
investments (actual inflows) in the
capital goods industry amounted to
over US $ 1.6 billion since January
2000.
Non Electrical Machinery
Machine Tools
The machine tools sector is one of
the important segments of the
capital goods industry in India. The
sector is recognized as a provider
of cost-effective high quality lean-
manufacturing solutions. The sector
manufactures almost the complete
range of metal-cutting and metal-
forming machine tools. Customized
in nature, the products from the
Indian basket comprise
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conventional machine tools as well
as computer numerically controlled
(CNC) machines.
Total production of machine
tools in the country reached the level
of more than Rs. 2000 crores by the
end of the year 2006-07, showing a
growth rate of almost 15%, over the
previous year. Export of machine
tools has shown a steady increase
in the last few years. In the year
2006-07, export of machine tools
was worth more than US $ 234
million. During the period April –
November 2007, machine tools
export stood at US $ 199.28 million,
an increase of over 27%, over the
same period in the previous year.
USA is the largest market for
machine tools exports from India. In
the year 2006-07, USA accounted for
19% (US $ 45.25 million) of India’s
total export of machine tools. Other
major markets include Germany
(8.1%), UAE (5%), Singapore
(4.7%), and USA (4.6%).
Textile Machinery
Textile is one of India’s major
export items contributing to over
11% in India’s export earnings.
Indian textile machinery sector
started as an offshoot of the textile
industry to cater to the capital
expenditure demand of the textile
units. the Indian textile machinery
sector started producing automated
machines, with innovation,
envisaging growth in capacity

expansion in the textile industry in
the post-quota regime.
Textile machinery production
has shown steady increase in the
recent years. The total production of
textile machinery in the country
increased from around Rs. 11,750
million in 2002-03 to more than
Rs.30,000 million by 2007-08. The
success of the textile machinery
sector depends largely on
technology and branding.
Considering that many Indian textile
machinery manufacturers have
started in-house research and
development activities, the sector is
poised for further growth. Recently,
leading textile machinery
manufacturers have collectively
established a research and
development centre at the Indian
Institute of Technology, Mumbai.
Construction and Mining
Machinery
India produces a wide range of
construction and mining machinery
– such as hydraulic excavators,
wheel loaders, backhoe loaders,
bull dozers, dump trucks, tippers,
graders, pavers, asphalt drum / wet
mix plants, breakers, vibratory
compactors, cranes, fork lifts,
dozers, off-highway dumpers (20T
to 170T), drills, scrapers, motor
graders, rope shovels etc. They
perform a variety of functions like
preparation of ground, excavation,
haulage of material, dumping/laying
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in specified manner, material
handling, road construction etc.
Indian construction and mining
machinery sector is also exporting to
various countries, including
developed countries such as USA,
UK, and Singapore. Major items of
export include moving, grading, pile-
extracting machineries.
Process Plant Machinery
The process plant machinery and
components sector in India is a
heterogeneous segment of capital
goods industry. The sector caters
to a wide range of process
industries like oil and gas,
petroleum refining, petrochemicals,
chemicals, fertilizers,
pharmaceuticals. metal processing,
cement, paper, sugar, and food
processing. The sector designs and
manufactures a wide range of
equipment and systems such as:
pressure vessels, columns, towers,
heat exchangers, multi-tubular
reactors, evaporators, crystallizers,
dryers, road/rail tankers, storage
equipments, equipment for dairy
and food processing, mineral
beneficiation equipments, rotary
kilns, equipments for solid-liquid
separation, equipment for water
and waste water treatment.
Few of the Indian companies
have made their mark in the export
arena due to their manufacturing skill
and quality. These companies are
equipped with modern machinery
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and are producing sophisticated
equipments such as high-pressure
heat exchangers, spiral heat
exchangers, multi-wall vessels, air-
fin coolers, multi-tubular reactors etc.
Exports in the last couple of years
have grown at a CAGR of 36%, while
the import growth (CAGR) has been
around 49%.
Electrical Equipments and
Machinery
The electrical equipment and
machinery sector comprises a
range of products, such as
transformers, switchgears, motors,
generators and control equipment.
Electrical equipment and machinery
is principally used in the power
industry (generation, transmission
and distribution) as well as in other
manufacturing industries, such as
automobiles, cement, steel,
petrochemicals and refining.
Transformer Sector
Transformer is a crucial component
in transmission and distribution of
electricity. The transformer industry
is usually divided into distribution
transformers, power transformers
and other types of special
transformers for welding, traction,
furnace etc.
Besides catering to the domestic
demand, India is exporting
transformers to over 100 countries
covering USA, Europe, Syria,
Malaysia, Singapore, Bangladesh,
Oman and China. In the year 2006-
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07, India’s export of transformers
amounted to US $ 645 million, a
growth of 74% over the previous
year.
India is also an importer of
electric transformers; in the year
2006-07, India imported
transformers valued US $ 557
million, a growth of 37% over the
previous year. India’s major source
countries include China, Germany,
USA, Singapore and Japan. China
alone accounts for about 40% of
India’s total transformer imports.
Switchgear and Control gear
Sector
Switchgears and control gears are
required for transmission and
distribution of power and are
necessary at every switching point
in power transmission and
distribution system. This sector is
fully developed and matured one in
India, producing and supplying a
wide range of products catering to
the needs of households,
commercial and power sector, for
entire voltage ranging from 240 V
to 800 KV. India has been exporting
switchgears and control gears to
various countries. In the year 2006-
07, India exported switching
apparatus (not exceeding 1000v)
valued at US $ 234 million, a
growth of 28% over the previous
year. In addition, India also
exported switching apparatus
(exceeding 1000v) worth US $ 90
million in 2006-07, a growth of 34%

over the previous year. Major
markets include UK, USA,
Germany, UAE, Philippines,
Australia and Hong Kong.
India is also an importer of
switchgears and control gears. In the
year 2006-07, India imported
switchgears and control gears (not
exceeding 1000v) valued US $ 462
million in 2006-07. In the same year,
the import of switchgears (exceeding
1000v) amounted to US $ 51 million.
Capacitors
Capacitors are used for correcting
power factor at the consumer end,
to improve the efficiency of the
system and reducing unwanted
loses. LT capacitors, HT capacitors,
running capacitors, electrolytic
motor starter capacitors, and
induction furnace capacitors are
some of the capacitors
manufactured in India. India’s
export of electric capacitors
amounted to US $ 39 million in
2006-07, witnessing a growth of
56% over the previous year. USA
is the major market for Indian
electric capacitors with a share of
11.6%, followed by Spain and Qatar
(10% each), Turkey and UAE (6%
each).
Motors and Generators
The generator industry has two
segments: portable sets, which run
on kerosene, petrol and diesel; and
stationary sets, which run primarily
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on diesel. Large number of players
are engaged in production of
generators, particularly in the lower
KVA generator (3 to 15 KVA)
segment. This segment is
characterized by simple technology
and hence dominated by the small
and medium enterprises (SMEs). In
the year 2006-07, India’s export of
electric motors and generators (HS
Code 8501) was valued at US $
133 million, whereas India’s export
of electric generating sets and
rotary converters (HS Code 8502)
amounted to US $ 361 million. USA
is the largest market for export of
both the categories. On the other
hand, India’s import of electric
generating sets (HS Code 8502)
was valued at US $ 114 million, and
the import of electric motors and
generators (HS Code 8501) was
valued at US 244 million. China,
Germany, USA and South Korea
are major importers under both the
categories.
In sum, the capital goods
industry in India has witnessed
turnaround since last few years. The
index of industrial production is
witnessing an increasing trend since
2002-03. Exports by various sub-
segments of the capital goods
industry is also on the increase,
especially with regard to machine
tools under the category of non-
electrical machinery; and
transformers, switchgears, electric
generating sets under the electrical
machinery category. India is net
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importer in most of the products, as
the leading players are expanding
their capacities and the country is on
the manufacturing growth path.
EXIM BANK’S SUPPORT TO
INDIAN MACHINE TOOLS
SECTOR: CASE STUDY
The economic reforms increased
the competition to Indian industry,
both in domestic and foreign
markets. This resulted in
transformation of Indian
manufacturing sector, which has
been increasingly seeking
technological solutions that help
them in sharpening their
competitiveness, both in domestic
and international markets. At this
juncture, Export-Import Bank of
India (Exim Bank) identified Indian
machine tools sector – a sub-
segment of Indian capital goods
industry and brought out a study
identifying appropriate strategies to
strengthen this sector and thereby
help contribute to the growth of
Indian manufacturing sector. One
such recommendation made by the
study was that the Indian Machine
Tools Manufacturers Association
(IMTMA) to adopt a cluster
approach, seeking support from
United Nations Industrial
Development Organisation (UNIDO)
and the Government of India (the
then Department of Small Scale
Industries) to help the member-
firms in overcoming the
weaknesses by adopting best
practices in the industry across the
globe.
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Following this recommendation,
at the instance of the industry,
National Programme for
Development of Indian Machine Tool
Industry (NPDMI) was launched in
December 2002, as a cooperative
effort of UNIDO, Government of
India, Exim Bank and IMTMA with the
aim of strengthing the competitive
position and technological and
market development capacity of
players, and establishing ‘Made in
India’ label in machine tools.
A Steering Committee was
formed drawing expertise from
various fields to guide successful
implementation of the project. Exim
Bank’s representation in the
Committee significantly contributed
to the successful implementation of
the programme. Range of activities
was undertaken to update the
manufacturing and management
practices of the players in Indian
machine tools sector. Evaluation of
machine tool technology and market
trends in USA and Europe was
undertaken through surveys. Visit to
EMO Milan (a biennial trade show for
machine tools held in Italy) helped
the industry to study the global
technological trends in the machine
tools sector, and undertake gap
analysis of technology in Indian
machine tools sector. Learning
through participation in international
trade shows were supplemented with
showcasing the capabilities of Indian
machine tool manufacturers in India.
To bridge the technology gap,
especially in the small and medium

segment, a series of advanced
machine tool design courses were
organized at International Centre for
Advancement of Manufacturing
Technology (ICAMT), Bangalore. It
may thus be fair to surmise that as a
result of range of such activities, the
production and export of Indian
machine tools sector have gone up
over the years. ‘Made in India’ label
of Indian machine tool sector has
gained international reputation
making the sector more competitive
in domestic as well as international
markets. UNIDO declared this
initiative as a success story
Exim Bank has been closely
associated with the export efforts of
Indian machine tools sector. The
Bank has been supporting the
machine tool sector to modernise
and upgrade their production
facilities, adaptation of technology
and internationally acceptable
standards through its various
financing products and services. The
Bank under its export facilitation
programme, has supported the
initiative of IMTMA in setting up of
the Bangalore International
Exhibition Centre (BIEC)
INDIAN CAPITAL GOODS
INDUSTRY: MARKET
ANALYSIS AND EXPORT
POTENTIAL
Globally, the capital goods industry
is worth around US $ 4.5 trillion.
Germany and USA are traditionally
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large suppliers of different sub-
segments of capital goods. Of late,
Asian countries such as China,
Taiwan and South Korea have
become major players in production
and export of capital goods.
Consumption of capital goods has
also increased substantially in
developing Asian countries due to
thrust given to the value-added
manufacturing.
Under the machine tools
category, though there has been
growth in exports, in the last three
years, the import of machine tools
have outgrown in several sub-
segments, bringing down the export-
import ratio (Annexure - ). This
indicates that there is significant
room for market expansion in the
domestic market. Market analyses
reveal that major developing country
importers of machine tools in the
world include Mexico, Thailand,
Turkey, Poland and China. India’s
major developing country markets
for machine tools have been UAE,
Nigeria and Thailand. In addition,
India exports machine tools to host
of developing countries of Africa and
West and South Asia, such as
Kenya, Sudan, Bangladesh, Iran and
Sri Lanka. Though some of the sub-
segments of machine tools are
exported to leading developing
country markets, in many cases the
share of India in these markets are
insignificant. Thus, careful targeting
of export markets need to be
undertaken by the machine tool
19

industry for penetration in new
markets and expansion of market
share in existing markets.
The technology upgradation
fund scheme of Government of India
has contributed to the capacity
expansion in the domestic textile
sector significantly. Most of such
capacity expansion has occurred
through imports. As a result, the
export-import ratio of textile
machinery sector has also come
down significantly in the last three
years (Annexure -), especially in sub-
segment, non-woven machinery.
Major developing country importers
of textile machinery in the world
include China, Hong Kong, Turkey
and Pakistan. On the other hand,
India’s major developing country
markets for textile machinery include
Bangladesh, Indonesia and UAE.
There is ample scope for exporting
to other developing countries of
South Asia, especially to Pakistan
and Sri Lanka. In addition, countries
such as Turkey and Egypt could also
be targeted for expanding exports
and enhancing market share.
Construction and mining
equipment is another area in which
the export-import share has come
down in the last three years, except
under the product group pulley tackle
and hoists (HS Code 8425). This
indicates that there is significant
room for capacity expansion in
construction and mining equipment
sector also. Amongst developing
20
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countries, China, Mexico and
Indonesia are the leading importers
in the world. While developed
countries cater to most of the import
requirements of these developing
countries, India could explore the
opportunities in these countries.
India’s export markets include UAE,
Kuwait and Qatar in west Asia and
African countries such as Kenya,
Tanzania, Togo, Tunisia and
Mauritius. The share of India in the
import of these countries is not
always significant. Thus, these
countries could be targeted for
market expansion by the
construction and mining equipment
companies in India.
Analysis of process plant
machinery sub-segment revealed
that in some product groups, export
is greater than imports, and export-
import ratio in most such product
groups has also improved in the last
three years. However, in many
product groups, there has been
reduction in export-import ratio.
Major developing country importers
include China, Mexico, Taiwan,
Indonesia and Turkey. Though
India’s exports of process plant
equipments are oriented towards
these developing countries, the
volume is not consistent with the
potential. India’s major export
markets for process plants include
UAE, Saudi Arabia, Nigeria, Kenya
and Vietnam. Except for few
products in few countries, India’s

share is insignificant even in these
markets.
Mixed results are also observed
in electrical machinery and
equipment sub-segment. While in
most of the product groups the
export-import ratio has increased,
reduction has been witnessed in
product groups such as electric
motors and generators. Major
developing country importers in the
world are China, Hong Kong, Taiwan
and Mexico. Another interesting
trend in world trade is that there has
been significant trade amongst these
countries, especially China, Hong
Kong and Taiwan trading with each
other. India’s main developing
country export destinations of
electrical machinery include UAE
and Saudi Arabia. Other developing
countries to which India has been
exporting the electrical equipments
include Qatar, Mali, Nigeria, Syria
and Philippines. However, India’s
share in total import of many of these
countries is not significant, indicating
the opportunities for market
expansion in these countries.
In sum, the analyses show that
there need to be capacity expansion
in the Indian capital goods industry
to cater to the rising demand, both
from domestic and export markets.
Technological solutions, through
research and development, are to be
offered to capture new markets;
effective market enhancement and
customer retention strategies are
required to sustain and expand in the
existing developing country markets.
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CHALLENGES AND
STRATEGIES
Challenges
Technological Competency
The technologies used for
production as also in assembly of
Indian capital goods are not always
updated in tune with the global
technological trends. While there
are some players who have
technological competencies,
especially in design capability,
application innovation and process
innovation, the technological
capabilities of large number of
players, especially in the SME
sector, are limited. In addition, the
technological competencies of
players in the SME sector, who
provide components or
intermediates to original equipment
manufacturers are also limited.
Transfer of technology from other
developed countries has also not
been significant despite
liberalization of policies for
technology transfer and foreign
direct investments.
Import of Second Hand
Capital Goods
Under the Export Promotion Capital
Goods (EPCG) Scheme, import of
second hand capital goods is
permitted in India for pre-
production, production and post-
production activities. The capital
goods that may be imported under
this scheme include spares
21

(including refurbished/
reconditioned spares), tools, jigs,
fixtures, dies and moulds. Import of
capital goods under this scheme
would attract only 5% customs duty
subject to an export obligation,
equivalent to 8 times of duty saved
on the capital goods imported. It
may be mentioned that machine
tools, refinery equipments,
construction and mining machinery,
plastic processing machinery and
printing machinery are some of the
second hand capital goods
imported into India. During the
period April – December 2007, over
14300 EPCG applications have
been sanctioned with licenses /
authorizations, with a CIF duty
credit of nearly Rs. 12,000 crores.
While the main objective of this
scheme is to help modernization of
the industry, by offering duty
concessions, the imported capital
goods pose stiff competition to the
indigenous capital goods
manufacturers.
Cost Competitiveness
The Indian capital goods industry
largely uses crucial inputs such as
iron and steel that are of domestic
origin. Over the years, there has
been significant increase in cost of
inputs, but the players in this
industry are unable to pass on the
price increase to the end
consumers, due to competition
from imports.
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The capital goods industry also
has high incidence of taxation; a
number of indirect duties (such as
excise duty, octroi, entry tax, sales
tax and service tax) are levied adding
up to the end user cost. This makes
the indigenous supplies costlier vis-
à-vis imported capital goods. Some
estimates have put the cost
disadvantage, due to such levies to,
an extent of over 20%.
Delivery Schedules
It may be mentioned that most of
the capital goods are not supplied
off-the-shelves and are custom-
made to suit the requirements of
end users. Thus, the delivery
schedule to cater to the order is
longer than many other engineering
products. However, due to various
reasons, including infrastructure
constraints, the delivery schedules
of Indian capital goods suppliers
are longer than their foreign
counterparts. Industry sources
estimate that the delivery time of
Indian capital goods manufacturers
are two times longer than their
global counterparts affecting the
competitiveness in delivery
schedules. In such circumstances,
imported capital goods are
preferred over Indian capital goods,
though they are technologically and
functionally comparable with
international standards.

Strategies
Transformation in Objective
and Approach
Sale of capital goods is not an one-
time business but require technical
support in transportation, erection,
staff training (for operation and
minor repairs), continuous service
maintenance and periodical
upgradation in technology. All over
the world, the capital goods
manufacturers are turning
themselves as engineering services
companies offering turnkey
solutions to retain the customers.
Players in Indian capital goods
industry may also increasingly
reorient their approach to transform
into service based organizations.
Such service orientation would help
the industry in sharpening the
competitive advantage.
Strengthening Research and
Development
Consistent with global trends,
Indian capital goods industry also
needs to grant highest priority to
innovation and research and
development. The R&D intensity of
firms in Indian capital goods
industry is less than 1%, far below
than the R&D intensity of other
sectors such as pharmaceuticals
and automobiles. Precision
measuring, materials engineering,
and process innovation are some
of the areas for strengthening R&D
in Indian capital goods industry. It
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is also important to increase the
linkages between the public
research systems and industry to
facilitate technology transfer and
enhance the responsiveness of the
capital goods industry.
Common R&D facilities under
the cluster approach or under the
public-private partnership approach
would enhance the technological
strengths of the Indian capital goods
industry. In this context, it may be
mentioned that the textile machinery
industry, with the support of
academia and Government, has set
up a R&D center at Indian Institute
of Technology (IIT), Mumbai. It is
reported that textile engineering
related projects undertaken by post-
graduate students in IIT, Mumbai, in
this R&D center, would be useful in
product development and innovation
in process engineering in the textile
engineering industry. Such R&D
centers may be encouraged to
contribute to the technology
development in other capital goods
sub-sectors also.
Strengthening Technological
Competencies
In order to enhance productivity,
product quality and operating
efficiency, the players in the sector
need to constantly upgrade their
technological competencies. The
Department of Heavy Industry,
Government of India, has proposed
to undertake a comprehensive
scheme for technology upgradation
23

and R&D facilities for modernization
of capital goods industry. The
proposed scheme may endeavour
to help the players in the Indian
capital goods industry in tracking
global trends in product and
process technologies, with specific
objective of cost control, besides
enhancing productivity, energy
efficiency, eco-friendliness, product
quality, operating flexibility and
efficiency. The scheme may also
help enhance the usage of
information technology that
provides convenience to the
customers, and help enhance
customer base and new avenues
for profitability. Such R&D Centres
may also be conceived as training
platforms for skill upgradation of the
shop-floor technicians in the capital
goods industry.
Fund for Technology
Upgradation in Capital Goods
Industry
It may be fair to surmise that there
are capacity constraints at the
following two levels in the capital
goods industry:
a) Capacity constraints to cater to
the demand in volume,
considering the growth
momentum in the industrial
sector as also the overall
economic growth;
b) Capacity constraints to cater to
the technological demands that
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may improve efficiency in
operations and cost control.
While fiscal incentives would
help attract investments in the capital
goods industry in general, adding
production capacity, a fund for
supporting technology upgradation in
the capital goods industry may be
considered in order to achieve
quality, standardization and
benchmarking with international
products.
Enhancing Market Position
Analysis of trends in imports by
major countries reveals that there
is vast scope for market expansion
in many developing countries to
which India is currently exporting.
Various market entry strategies
may be adopted including attaining
market leadership, through
acquisition and consolidation, and
achieving economies of scale in
price sensitive markets. Mergers
and acquisitions routes may also be
adopted by the players in the Indian
capital goods industry, to build and
nurture brands in export markets.
Value-based supply chain may be
created through building
customized products and offer of
engineering services to create
exclusiveness in competitive
markets. Sales approach should be
transformed to provide solutions
that add value to the clients through
enhancement of process efficiency
and product quality.

Introducing New Product
Lines
Over the years, players in the
Indian capital goods industry has
been diversifying the product lines
offered with the objective of
mitigating risks associated with
business and cyclical trends.
However, more focus should be
given in building new generation
machines that may be in demand
in future. Such new generation
machines should have greater
flexibility to produce a variety of
products. Such new generation
machineries also create
opportunities for offering
engineering services that are less
sensitive to business and cyclical
fluctuations.
Tapping Outsourcing
Opportunities
Globally, OEMs are increasingly
outsourcing their design and
engineering services to developing
countries like India to add value at
lower cost and to focus on their
core competencies. According to a
NASSCOM study, spending on
engineering services across the
world is estimated to be US $ 750
billion in 2004, which is expected
to cross US $ 1 trillion in 2020.
While only 15-20 billion (2% of total
demand) is being off-shored at
present, the off-shoring market is
expected to grow to US $ 150
billion to US $ 225 billion (around
20% of total demand) by 2020.
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Capital goods industry, one of the
potential players in India in the
engineering services segment,
holds significant potential to tap the
growing business opportunities in
the outsourcing arena.
Increasing Interaction with
End-Users
Capital goods manufacturers also
need to closely interact with end-
users (especially sectors such as
automobile, defense, aeronatics,
space, metals, construction,
textiles, chemicals and
pharmaceuticals), to understand the
latest trends in manufacturing; the
expectations of end users in
performance of machinery; areas
for improvement in process
efficiency, energy efficiency, product
quality, and cost control strategies.
The trends in shifting of
manufacturing base from
developed to developing countries
could also be unearthed through
interactions with end-user
industries. Such interactions would
help the players in capital goods
industry to source appropriate
technologies, in addition to making
plans towards capacity
enhancement to cater to the
growing demand.
Thrust on Safety Standards
and Product Liability
Exporting to USA and EU
requires the machinery
manufacturers to carefully consider
25

the requirements for both regulatory
and liability protection. USA has a
complex, multi-tiered regulatory
environment for machinery and the
manufacturers need to define the
method of indicating compliance with
regulatory issues in most acceptable
manner. The Occupational Safety
and Health Administration (OSHA),
the agency in USA, which is
responsible for regulating machinery
used in the workplace, has defined
the product requirements and safety
standards, as also the periodicity of
evaluating safety audits. In European
Union, there are host of Directives,
such as Machinery Directive 98/37/
EC, Lifts Directive (95/16/EC),
Directive on Personal Protective
Equipments 89/686/EEC, Directive
on Noise Emissions 2000/14/EC,
governing the safety standards of
capital goods. In addition the EU
Directive concerning Liability for
Defective Products make EU
importers liable for the products they
import, including the machinery they
provide to their employees for work.
Exporters of capital goods,
particularly to USA and EU should
carefully follow the trends in product
standards and conform their
products to such safety
requirements.
Accelerating Investments in
Infrastructure
Growth in investments in
infrastructure sectors, especially for
construction of road / rail network,
bridges and dams, ports (both air
26
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and sea), and handling facilities in
such ports and power stations
boost the demand for capital
equipments. This would be
significant in the case of electrical
machinery (investments in power
sector) and construction / earth
moving equipments (investments in
road / rail infrastructure), which
would have direct impact. In
addition, investments in
infrastructure would boost the
manufacturing sector and there by
provide growth opportunities for
capital goods such as machine
tools, textile machinery and process
plant machinery.
The consultation paper on
‘Investment in Infrastructure During
the Eleventh Five Year Plan’, has
estimated that about US $ 500 billion
investments are required in the
Indian infrastructure sector to sustain
the GDP growth of 9%, during the
Eleventh Five Year Plan. This works
out to approximately 2.3 times higher
as compared to the actual
investments in the infrastructure
sector that have taken place in the
Tenth Five Year Plan. If this volume
of investment demand in the
infrastructure sector is met
systematically, the capital goods
industry would get further
momentum in demand.
Accelerating Capital
Investments in Indian
Manufacturing Sector
Government may also consider
offering incentives to the

manufacturing sector for
upgradation of technology and
equipments. The incentives that
may be considered are tax
concessions, accelerated
depreciation allowances and excise
duty relief. Such strategy may be
particularly relevant for SME sector
that would be encouraged to
upgrade their technological
competence, manufacturing
process and product quality.
IN SUM
India should leverage its inherent
strengths, such as availability of
pool of skilled workforce, low cost
operations and existence of large
domestic demand, in strengthening
capital goods industry. Leveraging
the abundant availability of software
skills in engineering design and
drawing would strengthen
technological competitiveness.
Continuous training and skill
upgradation would help the human
resources in the industry to capture
the trends in new processes and
technologies.
Scale economies would position
India further as a cost-effective
manufacturing base for capital
goods. Strategies such as
transformation of the shop-floors fully
flexible to produce different types of
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machineries and redesigning the
machining process to accommodate
usage of common components /
parts in various types of machineries,
would contribute to the scale
economies significantly.
Technology sourcing from
countries such as Germany,
Switzerland, Italy and Spain may be
encouraged, especially in the context
of shift in manufacturing base from
developed to developing countries.
The strengths of machining
technologies in other developing
countries such as China and Taiwan
should be effectively adapted by
Indian players.
Changing trends in product
quality and safety standards should
be monitored and complied to
sustain market presence in
developed countries. Developing
countries of Asia, Africa, Latin
America and central and east Europe
should be targeted for market
expansion as these countries are
having almost similar raw material
and manufacturing base, like India.
Effective supply chain management
and thereby optimizing the product
delivery schedules should be given
top priority to retain the existing
customers as also to fetch new
customers.
27

1. INTRODUCTION
Capital goods industry is the
backbone of the manufacturing
activity. A vibrant capital goods
industry is a pre-requisite to propel
the growth of the manufacturing
activity in any country. International
Standard Industrial Classification
(ISIC) of all economic activities
(Revision – 3) classifies most of the
capital goods items under three
divisions (29, 30 and 31) with the
following codes:
291 - Manufacture of General
Purpose Machinery
292 - Manufacture of Special
Purpose Machinery
293 - Manufacture of Domestic
Appliances
300 - Manufacture of Office,
Accounting and Computing
Machinery
311 - Manufacture of Electric
Motors, Generators, and
Transformers
312 - Manufacture of Electricity
Distribution and Control
Apparatus
4 Department of Industrial Policy and Promotion, Ministry of Commerce and
Industry, Government of India.
28
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313 - Manufacture of Insulated
Wires and Cables
314 - Manufacture of
Accumulators, Primary
Batteries
315 - Manufacture of Electric
Lamps and Lighting
Equipments
319 - Manufacture of Other
Electric equipments
In addition, divisions 32
(Manufacture of radio, television and
communication equipment and
apparatus) and 33 (Manufacture of
medical, precision and optical
instruments) are also considered as
capital goods, mainly used in
electronics or services industries.
A study commissioned by the
Government of India4 has defined
capital goods as plant machineries
for agricultural, industrial and
commercial segments of economic
activities that have economic asset
life of over 3 years.
The Index of Industrial
Production (IIP) compiled by the

Central Statistical Organisation
(CSO), Government of India, has
classified capital goods under use-
based classification having a weight
of 9.2% in IIP. Over 50 items are
covered under the capital goods
industry. The list of products along
with the corresponding weights in IIP
is given at Annexure -1.
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Considering the list of items
covered under the head ‘capital
goods’ in calculation of IIP, this study
has analysed the major segments
such as machine tools, machinery
and equipments (such as textile
machinery, electrical machinery,
earthmoving and construction
machinery, and process plant
equipments).
29
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2. CAPITAL GOODS INDUSTRY -

GLOBAL SCENARIO

According to a study by United followed by India with a share of

Nations Industrial Development
Organisation (UNIDO), Japan is the
largest manufacturer of electrical
machinery and apparatus (ISIC
Code 31) in 2005, with a share of
55.2% in the year 2005. Other major
producers were USA (10.0%), China
(8.9%), Germany (6.9%) and France
(2.6%). India holds a share of 1.7%
in global production of electrical
machinery and apparatus in 2005.
Amongst developing countries,
China is the largest producer with a
share of 55% in cumulative
production of developing countries,
10.2%, and Brazil (7.2%).
There has been a shift in
production of electrical machinery
and apparatus in the last one decade
with many of the Asian countries
moving up in both the ranking and
market share. While Japan has
increased its share from 44.3% in
1995 to 55.2% in 2005, China and
India have increased their shares,
from 3.9% and 0.9% in 1995, to 8.9%
and 1.7%, respectively. Both China
and India have also moved up their
ranking; while China has moved up
from fifth position to third position,

Exhibit –1:
LEADING PRODUCERS OF ELECTRICAL MACHINERY AND
APPARATUS (ISIC 31)

SOURCE: International Yearbook of Industrial Statistics, 2007, UNIDO.

30

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India has moved up from eleventh producer of non-electrical machinery

position to sixth position.
In the case of other machinery
and equipments (ISIC 29), which
mainly consist of general purpose
machinery (engines, turbines,
pumps, compressors, taps, valves,
bearings, gears, ovens, furnaces,
lifting and handling equipments) and
special purpose machinery (such as
agricultural machinery, machine
tools, metallurgical machinery,
mining / quarrying / construction
machinery, textile / leather
machinery, and food processing
machinery), USA is the world’s
leading producer with a share of
19.4% in world production in 2005,
followed by Japan (15.6%),
Germany (14.9%) and China (7.3%).
India is ranked at 11th position in
world production with a share of
1.4%. Amongst developing
countries, China is the major
items (ISIC 29) with a share of 33.8%
in 2005. India is fourth largest
manufacturer with a share of 6.7%
in the total production of developing
countries.
In value terms, the global capital
goods industry is estimated to have
generated total revenue of US $ 4.5
trillion in 2006, according to a report
by Datamonitor. The capital goods
industry has seen fluctuations in its
growth rate over the past few years
and experienced a CAGR of 2.7%
during the period 2002-2006.
United States is the major
country accounting for 31% of the
global market value in 2006. Europe
as a region accounted for around
28%, followed by the Asia-Pacific
region (27%).
Globally, trade in capital goods5
was valued at over US $ 1.5 trillion

Exhibit – 2:
LEADING PRODUCERS OF OTHER MACHINERY AND
EQUIPMENTS (ISIC 29)

SOURCE: International Yearbook of Industrial Statistics, 2007, UNIDO.

5 WTO statistics

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Exhibit 3:
REVENUE GENERATION AND GROWTH IN GLOBAL CAPITAL
GOODS INDUSTRY
SOURCE: Datamonitor
in 2006. Thus, the capital goods
trade accounts for 12% in world
merchandise trade and 17.5% in
world trade in manufactures. The
share of exports in total world
production is estimated to be one-
third. Germany is the largest exporter
of capital goods in the world
accounting for 13% of global exports
in 2006. China and the USA come
next with shares of 12% and 11%,
respectively.
The trends in production and
trade in select capital goods sub-
segments are discussed below:
MACHINE TOOLS
The total production of machine
tools by the top 29 global producers
was more than US $ 70 billion in
2007, experiencing a growth of
32
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18% over the previous year. Japan
is the largest producer of machine
tools accounting for 20% of the
world production. Other major
producers are Germany (18%),
China (14%), Italy (10%), Korea
(6.5%) and Taiwan (6%). In fact,
following the unification of
Germany, the country has remained
as world’s second-largest producer,
except in 1999 and 2002, when it
edged out Japan for the number
one slot.
In terms of consumption of
machine tools, China tops the list
with total consumption worth nearly
US $ 15 billion, showing a growth of
17% over the previous year. Japan
and Germany comes next with a
consumption level of more than US$
7 billion each. The consumption level
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Table 1:
WORLD PRODUCTION OF MACHINE TOOLS –2007
Share of
Rank Country Production Cutting Forming
(in US$ Million) Tools Tools
1 Japan 14,443.50 88% 12%
2 Germany 12,725.40 76% 24%
3 China 10,090.00 71% 29%
4 Italy 7,272.70 49% 51%
5 South Korea 4,550.00 68% 32%
6 Taiwan 4,378.00 80% 20%
7 United States 3,578.00 79% 21%
8 Switzerland 3,323.80 85% 15%
9 Spain 1,436.80 67% 33%
10 Brazil 1,157.80 81% 19%

SOURCE: Gardner Publication Inc.

for India is around US$ 1.8 billion, consumption is in fact highest among
thus being the 9th largest consumer the top 20 countries (49%).
of machine tools. The growth rate of

Table 2:
WORLD CONSUMPTION OF MACHINE TOOLS
(US $ Million)
Rank Country 2007 2006 Growth (%)
1 China 15,390.0 13,113.0 17.0
2 Japan 7,619.4 7,858.6 -3.0
3 Germany 7,252.1 5,139.7 41.0
4 USA 6,171.8 6,361.2 -3.0
5 Italy 5,056.0 3,786.2 34.0
6 South Korea 4,150.0 4,020.0 3.0
7 Taiwan 3,785.0 2,887.0 31.0
8 Brazil 1,822.2 1,423.2 28.0
9 India 1,774.8 1,191.2 49.0
10 Mexico 1,669.6 1,245.9 34.0

SOURCE: Gardner Publication Inc.

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In terms of per-capita (US $ 7.6 billion), Italy (US $ 4.2

consumption6, however, Switzerland
tops the list with the per capita
consumption being US $ 172 in
2007. Other major countries in terms
of per capita consumption include
Taiwan (US $ 166), Austria (US $ 97),
Germany and Italy (US $ 87 each).
World export of machine tools is
estimated to be over US $ 40 billion
in 2007, a growth of 18% over the
previous year. The export orientation
of global machine tool industry thus
works out to over 50% in 2007.
Germany is the largest exporter of
machine tools in the world, exporting
machine tools valued more than US$
9 billion in 2007. Germany exported
over 70% of its production in 2007.
Other major exporters include Japan
billion), Taiwan (US $ 3.4 billion) and
Switzerland (US $ 2.5 billion).
As far as the import is
concerned, China leads the world,
with an estimated import value of US
$ 6.9 billon in 2007. The United
States (US $ 4.4 billion), Germany
(US $ 3.7 billion) and Taiwan (US $
2.8 billion) are other major importers.
Amongst developing countries,
Mexico and India are emerging as
major importers of machine tools.
CONSTRUCTION AND MINING
MACHINERY
Global construction and mining
machinery industry is estimated to
have generated a total revenue of
US $ 113 billion in 2006. The

Table 3:
WORLD EXPORT OF MACHINE TOOLS
(US $ Million)
Rank Country 2007 2006 Annual Growth
1 Germany 9,167.80 7,516.00 22%
2 Japan 7,610.10 6,513.00 17%
3 Italy 4,207.60 3,318.70 27%
4 Taiwan 3,408.00 2,964.00 15%
5 Switzerland 2,457.50 2,236.70 10%
6 South Korea 1,800.00 1,450.00 24%
7 United States 1,659.80 1,802.30 -8%
8 China 1,600.00 1190.00 34%
9 United Kingdom 922.20 879.20 5%
10 Belgium 873.20 721.30 21%

SOURCE: Gardner Publication Inc.

6 Consumption weighted by population.

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Table 4:
WORLD IMPORT OF MACHINE TOOLS
(US $ Million)
Rank Country 2007 2006 Annual Growth
1 China 6,900.00 7,243.00 -5%
2 USA 4,253.60 4,474.60 -5%
3 Germany 3,694.50 2,535.40 46%
4 Taiwan 2,815.00 2,010.00 40%
5 Italy 1,990.90 1,397.40 42%
6 Mexico 1,544.80 1,397.40 34%
7 South Korea 1,400.00 1,358.00 3%
8 India 1,317.80 837.1 57%
9 France 1,252.00 1,071.60 17%
10 United Kingdom 1,178.30 921.60 28%

SOURCE: Gardner Publication Inc.

industry had experienced several space. In developing countries of

years of decline in growth, since
the beginning of the decade, but
picked up in recent years. The
industry experienced a 7% growth
in the year 2005, which, however,
came down to 4% in 2006. The
CAGR for the industry during the
period 2002-06 stood at 4.7%.
According to Datamonitor
analysis, the upturn is mainly due to
the improved performance of major
end-user industries like construction,
agriculture and manufacturing.
Construction sector witnessed
growth, both in developed and
developing countries, during this
period. In the developed countries,
such as USA and Europe, the growth
in construction activity was fuelled by
increased demand for new office
Asia-Pacific and eastern European
region, investment in infrastructure
increased substantially. Increasing
growth in extractive activities in Africa
region also led the growth in the
global construction and mining
industry.
The largest segment of global
construction and mining machinery
industry is earthmoving equipment,
which accounts for about 18% of the
industry size. Other major segments
include harvesting equipment (13%),
industrial tractors (10%) and other
industrial rolling machines (8%).
Geographically, USA dominates the
global construction machinery
industry, accounting for almost 39%
of the world market. Asia-pacific
(30%) is the second largest region,

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Exhibit 4:
GLOBAL CONSTRUCTION AND MINING MACHINERY INDUSTRY:
VALUE & GROWTH
SOURCE: Datamonitor
followed by Europe (28%), in the
world, in production of construction
and mining machinery.
Caterpillar, Inc, USA, is one of
the major firms in the construction
machinery sector. The company has
presence spanning across the world.
Few other major players include:
Deere & Co., CNH Global, and
Komatsu. Deere & Co. operates in
USA and Canada. It specializes in
manufacturing and distribution of
agricultural equipments, construction
and forestry equipment and
commercial and consumer turf
equipment.
36
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According to Association of
Equipment Manufacturers in USA,
the growth outlook for the
construction equipment
manufacturers would be of the order
of 8% in the year 2008, as compared
to the estimated growth of 9.5% in
2007. Earthmoving equipment and
lifting equipment are the two sub-
segments that have tremendous
potential for growth.
INDUSTRIAL MACHINERY
World market for industrial
machinery, equipment and supplies
is estimated to be US $ 345 billion
 CMYK

in 2006. Asia is the leading market IN SUM

for industrial machinery accounting
for around 32% (US $ 109 billion)
of world market in 2006. North
America and Europe are the other
major markets accounting for 25%
share each in the world industrial
machinery market. According to
ICON Group, the industrial
machinery market is expected to
cross US $ 500 billion in 2011, a
CAGR of 8%
The global capital goods industry
is on a growth path and there have
been many new countries emerging
as new players, especially the
Asian countries. With the ample
opportunities available, this industry
would see a lot of changes in the
future along with greater scope for
further growth and development.

Exhibit 5:
GLOBAL MARKET FOR INDUSTRIAL MACHINERY

SOURCE: ICON Group Inc., USA.

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3. CAPITAL GOODS INDUSTRY IN INDIA
INTRODUCTION
The capital goods industry is the
backbone of India’s manufacturing
sector. India produces wide range
capital goods, including machinery
and machine tools. Some of the
prominent capital goods produced
in India include heavy electrical
machinery, textile machinery,
machine tools, earthmoving and
construction equipment including
mining equipment, road
construction equipment, material
handling equipment, oil & gas
exploration equipment, sugar
machinery, food processing and
packaging machinery, railway
equipment, metallurgical
equipment, cement machinery,
rubber machinery, process plants
machinery & equipments, paper &
pulp machinery, printing machinery,
dairy machinery, industrial
refrigeration and industrial furnaces.
Indian capital good industry, in
the recent years has been witnessing
buoyancy after undergoing a
prolonged period of cyclical and
recessionary phase. From 1994-95,
the Indian capital goods industry has
witnessed a cyclical phase, and
thereafter the sector witnessed a
38
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recessionary phase till 2001-02. In
2001-02, the Indian capital goods
industry witnessed a negative
growth, mainly due to deceleration
in production of transport
equipments. However, since 2002-
03, the sector has been witnessing
buoyancy in the production trends,
as is evident from Exhibit -6. Though
the growth momentum has
marginally slowed down in 2007-08,
the capital goods sector still
continues to be the driver of growth
for IIP.
Under the two-digit
classification, in the index of
industrial production, capital goods
are classified as:

35 & 36 - Machinery and
equipments, other than
transport equipments;

37 - Transport equipments
The movement in the production
index of these two categories shows
a cyclical trend over the last one
decade. However, in many years,
both the segments have witnessed
a year-on-year growth of over 10%,
contributing to the overall upward
movement of IIP.
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Exhibit 6:
MOVEMENT IN INDEX OF CAPITAL GOODS INDUSTRY VIS-À-VIS
IIP IN INDIA

SOURCE: Central Statistical Organisation, Government of India.

Exhibit 7:
MOVEMENT IN PRODUCTION INDEX OF SUB-SEGMENTS OF CAPITAL
GOODS INDUSTRY

SOURCE: Central Statistical Organisation, Government of India.

Capacity creation in the Indian ANALYSIS OF SUB-SEGMENTS

capital goods industry has been
growing, since liberalization, and in
tune with the overall growth in
industry. Cumulative foreign direct
investments (actual inflows) in the
capital goods industry amounted to
over US $ 1.6 billion since January
2000. Details of sector-wise FDI
inflows are given in Table - 5.
The study focuses on the status of
the following segments of capital
goods industry in India.
a) Non-electrical machinery
(machinery not used in
electrical industry)
1. Machine tools

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Table 5:
FDI INFLOWS IN SELECT CAPITAL GOODS SECTOR IN INDIA
Sub-segments 2000-03 2004 2005 2006 2007 Total
(Jan-Dec) (Jan–Dec) (Jan-Dec) (Jan-Dec) (Jan-Dec) Rs. US $
Million Million

Electrical equipments 11,089.16 4933.13 1075.55 3746.32 24872.69 45716.86 1055.25

Machine tools 1362.69 2652.70 1001.11 1579.25 1966.07 8561.81 193.68
Industrial machinery 2698.18 430.76 1474.73 1169.92 901.3 6674.89 149.53
Agricultural machinery 854.34 0 2777.52 2527.51 240.44 6399.82 142.18
Earthmoving machinery 755.96 5.22 2313.00 45.79 2611.36 5731.34 134.04
Boilers and steam 1.97 0 23.40 149.85 42.3 217.52 4.86
generating plants
Prime movers 0 2.49 0 0 11.6 14.09 0.34

Total above 16,762.30 8024.30 8665.31 9218.64 30645.76 73316.33 1679.88

SOURCE: Department of Industrial Policy and Promotion, Government of India.

2. Textile machinery 3. Capacitors

3. Construction and mining
machinery
4. Process plant machinery
b) Electrical machinery (Machinery
used in electrical industry)
1. Transformer industry
2. Switchgear and control
gear
4. Motors and generators
Non Electrical Machinery
Machine Tools
The machine tools sector can be
broadly classified into the following
segments:
The machine tools sector is one
of the important segments of the

Exhibit 8:
CLASSIFICATION OF INDIAN MACHINE TOOLS SECTOR

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capital goods industry in India. The
sector is recognised as a provider of
cost-effective high quality lean-
manufacturing solutions. The sector
manufactures almost the complete
range of metal-cutting and metal-
forming machine tools. Customized
in nature, the products from the
Indian basket comprise conventional
machine tools as well as computer
numerically controlled (CNC)
machines.
The industry has been showing
an increasing trend in both
production and exports over the last
decade. However, export orientation
of the machine tools sector has been
coming down – from a level of 67%
in 2002-03 to 51% in 2006-07.
Total production of machine
tools in the country reached the level
of more than Rs. 2000 crores by the
end of the year 2006-07, showing a
Exhibit 9:
PRODUCTION AND EXPORT PERFORMANCE OF INDIAN MACHINE
TOOLS SECTOR
SOURCE: Exim Research; Data Sources from Indian Machine Tools
Manufacturers Association and Directorate General of Commercial Intelligence
Statistics, Government of India.
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growth rate of almost 15% over the
previous year. The break–up of
production under various segments
of machine tools sector is given in
Table - 6. While the Groups A & B
have witnessed impressive growth
rates in 2006-07, over the previous
year, Group C has witnessed
negative growth, due to which the
overall growth in the machine tool
sector has come down.
The Numerical Code (NC)
machines and Non NC machines
belonging to the Group A showed a
growth of 28% and 27%, respectively
during 2006-07, over the previous
year. Machine tools of Non NC type
belonging to the group B also
experienced a growth rate of 34%
during the same period. However,
Group C category of machine tools
witnessed a negative growth of 55%,
pulling down the overall growth for
41
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Table 6:
PRODUCTION OF MACHINE TOOLS IN INDIA
Machine Tools Value (in Rs. Million) Growth (%)
2005-06 2006-07
Group A (large size machine tools)
NC Machines 9442.94 12052.53 27.64
Non NC Machines 4078.15 5164.33 26.63
Group B (medium size machine tools)
NC Machines - -
Non NC Machines 1866.03 2494.53 33.68
Group C (small size machine tools)
NC Machines - -
Non NC Machines 2804.97 1246.67 -55.55

Total 18192.09 20958.05 15.20

SOURCE: Indian Machine Tools Manufacturers’ Association

this sector. HSS gear tools, of export orders for Indian

Abrasives, HSS drilling tools, HSS manufacturers.
milling tools, tools for tapping and
Export of machine tools has
threading, milling cutters are some
shown a steady increase in the last
of the Group C category of machine
tools that have witnessed negative few years. In the year 2006-07,
growth rate in 2006-07. export of machine tools was worth
Table 7:
Indian machine tool EXPORT OF MACHINE TOOLS
manufacturers have been able to FROM INDIA
explore the international markets too.
Year Exports
Strategies such as product (in US $ Million)
development with enhanced
2001-02 102.48
features, competitive pricing, and
market focus have been helping the 2002-03 121.03
players to enhance their market 2003-04 140.75
presence in international markets, 2004-05 176.57
particularly in Europe, the United 2005-06 230.39
States, and east-Asian countries. 2006-07 234.75
Lathes and automats, presses,
electro-discharge machines, and SOURCE: Directorate General of
machining centres formed the bulk Commercial Intelligence and
Statistics

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more than US $ 234 Million. During
the period April – December 2007,
machine tools export stood at US $
209.81 million, an increase of over
28%, over the same period in the
previous year.
USA is the largest market for
export of machine tools from India.
In the year 2006-07, USA accounted
for 19% (US $ 45.25 million) of
India’s total export of machine tools.
Other major markets include
Germany (8.1%), UAE (5%),
Singapore (4.7%), and US (4.6%).
Textile Machinery
Textile is one of the major export
items of India contributing to over
11% in India’s export earnings.
Indian textile machinery sector
started as an offshoot of the textile
industry to cater to the capital
Exhibit 10:
MAJOR EXPORT DESTINATIONS OF MACHINE TOOLS FROM INDIA
(2006-07)
SOURCE: Directorate General of Commercial Intelligence and Statistics
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expenditure demand of the textile
units. In the initial years, the growth
in the Indian textile machinery
sector was hampered due to
increasing demand for automated
machines. However, the Indian
textile machinery sector started
producing automated machines,
with innovation, envisaging growth
in capacity expansion in the textile
industry in the post-quota regime.
The thrust given by the
Government of India for
upgradation of technology (through
the Technology Upgradation Fund
Scheme - TUFS) also contributed
to the growth in demand for textile
machinery.
Textile machinery production
has shown steady increase in the
recent years. The total production of
textile machinery in the country
43
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increased from around Rs. 1175 The capacity of the sector (in
crores in 2002-03 to more than value terms) was estimated at Rs.
Rs.3000 crores by 2007-08. 3000 crores 2003-04, which has
Segments like spinning & allied increased to around Rs. 3800 crores
machinery, processing machinery, in 2007-08. The capacity utilization
have experienced growth in thus works out to around 80% in
production during this period. 2007-08.
Table 8:
TRENDS IN PRODUCTION OF TEXTILE MACHINERY IN INDIA
(Value in Rs. Million)
CATEGORIES 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08(P)
Spinning & 5816.68 6811.63 9957.79 13232.05 19910.45 22719.45
allied machinery
Synthetic fibre machinery 962.98 982.84 510.35 366.89 223.8 404.58
Weaving & 782.49 875.79 1166.64 1586.19 1572.86 1148.96
allied machinery
Processing machinery 731.92 1109.87 1358.07 2421.69 1644.39 921.43
Miscellaneous 69.91 94.02 121.02 120.61 122.48 129.71
(Spinning, Weaving &
Processing machines)
Textile testing/measuring
instruments machinery 387.84 497.98 578.01 647.69 630.81 437.01
Hosiery machinery & needles 260.72 442.71 391.91 425.26 338.74 354.72

Total 9012.54 10814.84 14083.79 18800.38 24594.02 26306.82

Spares & accessories 2737.9 2591.15 2764.35 3323.00 3396.80 3780.86

Grand Total 11750.44 13405.99 16848.14 22123.38 27990.82 30087.68

SOURCE: Office of the Textile Commissioner, Textile Machinery Manufacturers Association

Exhibit 11:
TEXTILE MACHINERY – TRENDS IN CAPACITY, PRODUCTION AND
CAPACITY UTILIZATION

SOURCE: Office of the Textile Commissioner, Textile Machinery Manufacturers Association

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Though not a significant volume,
India still exports textile machinery.
In the last few years, value of exports
of textile machinery was hovering
around less than Rs. 500 crores.
However, as a result of increasing
activities in the textile industry, import
of textile machinery is on the rise.
Total import of textile machinery
during the year 2006-07 was
estimated to be more than Rs. 9,000
crores, thus showing a growth rate
of around 33% over the previous
Exhibit: 12:
EXPORT AND IMPORT OF TEXTILE MACHINERY FROM INDIA
(In Rs. Million)
year. During the period April – July
2007, export of textile machinery
stood at Rs. 189 crores, whereas
import value during this period stood
at Rs. 2465 crores.
Segment-wise exports show that
spinning machinery is the largest
import item accounting for more than
40% of total textile machinery
imports. Other major items are
knitting machinery (19%), weaving
machinery (13%), and processing
machinery (12%).

SOURCE: Directorate General of Commercial Intelligence and Statistics

Exhibit: 13:
SEGMENT WISE IMPORT OF TEXTILE MACHINERY IN INDIA (2006-07)

SOURCE: Directorate General of Commercial Intelligence and Statistics

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With respect to exports, majority
of India’s textile machinery exports
are in the form of auxiliary machinery,
having a share of 86% in 2006-07.
Other major export items are
spinning machinery (17%),
processing machinery (9%) and
washing machines (7%).
The success of the textile
machinery sector depends largely on
technology and branding.
Considering that many Indian textile
machinery manufacturers have
started in-house research and
development activities, the sector is
poised for further growth. Recently,
leading textile machinery
manufacturers have collectively
established a research and
development centre at the Indian
Institute of Technology, Mumbai.
Exhibit: 14:
SEGMENT-WISE EXPORT OF TEXTILE MACHINERY FROM INDIA
(2006-07)
Source:
SOURCE: Directorate General of Commercial Intelligence and Statistics
46
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Construction and Mining
Machinery
There is an all-pervasive boom in
the housing and infrastructure
activities in India, which is likely to
drive the associated sectors such
as manufacture of construction and
mining equipments. India produces
a wide range of construction and
mining machinery – such as
hydraulic excavators, wheel
loaders, backhoe loaders, bull
dozers, dump trucks, tippers,
graders, pavers, asphalt drum / wet
mix plants, breakers, vibratory
compactors, cranes, fork lifts,
dozers, off-highway dumpers (20T
to 170T), drills, scrapers, motor
graders, rope shovels etc. They
perform a variety of functions like
preparation of ground, excavation,

haulage of material, dumping/laying
in specified manner, material
handling, road construction etc.
The construction and mining
machinery sector in India has
witnessed a phase of reorientation
in the last few years through
acquisitions and joint ventures. This
also reflects the active interest of
international majors in the domestic
market. However, given the heavy
sunk cost involved in the sector, the
number of producers in each
segment is few. Many international
players have also appointed selling
agents for importing and selling
complete equipments in India.
Major players are Bharat Earth
Movers Ltd (BEML) and TELCO
construction equipment in the earth
moving machinery segment; Escorts
and Gujarat Apollo Instruments in the
construction machinery segment;
Mcnally Bharat Engg. Co., Elecon
Engg. Co., TRF, Godrej & Boyce,
and Voltas in the material handling
Table 9:
INDIAN CONSTRUCTION AND MINING MACHINERY: INDUSTRY SIZE
Sl. No Category
1 Earthmoving machinery
2. Construction machinery
3. Material handling equipments
4. Cranes
5. Lifts and escalators
Total above
SOURCE: Industry – Market Size and Shares, CMIE
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equipment segment; Action
Construction Equipment, TIL and
Mukand in the cranes segment; and
OTIS and Johnson in the lifts and
escalators segments.
Export performance of Indian
construction and mining equipment
industry is given in Table 11. It may
be noted that in India, being a large
and growing economy, the domestic
demand is greater than the
production capacity and thus the
major portion of demand is met
through imports. Major items of
imports include lifting, handling,
loading and unloading machines;
self-propelled bulldozers, scrapers,
and graders; and derricks, cranes,
mobile lifting frames. Import growth
(CAGR) in the last three years has
been over 45%. Indian construction
and mining machinery sector is also
exporting to various countries,
including developed countries such
as USA, UK, and Singapore. Major
items of export include moving,
grading, pile-extracting machineries.
Estimated size in Rs. crores
(2006-07)
4500.00
700.00
1600.00
800.00
700.00
8300.00
47
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Table 10:
MARKET SIZE AND LEADING PLAYERS: SELECT SEGMENTS OF
CONSTRUCTION AND MINING MACHINERY (2006-07)
Major Products Companies Market Share (%)
Earthmoving Machinery Bharat Earth Movers Limited 39.97
Total Market Size: Telco Construction Equipment Co. 28.22
Rs. 4500 crores L&T- Komatsu 13.20
Larsen & Toubro 4.60
Construction Machinery Escorts Construction Equipment 48.85
Total Market Size: Gujarat Apollo Inds. 19.00
Rs. 700 crores Ashoka Buildcon 6.57
Sayaji Iron & Engg. Co. 4.42
Apollo Industrial Products 3.80
Material Handling Mcnally Bharat Engg. Co 24.87
Equipment Elecon Engg. 21.68
Total Market Size: TRF 16.68
Rs. 1600 crores Godrej & Boyce 10.18
Voltas 7.18
Cranes Action Construction Equipment 26.62
Total Market Size: TIL 19.50
Rs. 800 crores Mukand 14.00
Hercules Hoists 10.75
Greaves Cotton 9.00
Lifts and Escalators OTIS Elevators 64.34
Total Market Size: Johnson Lifts 33.22
Rs. 700 crores

SOURCE: Industry: Market Size and Share, 2007; CMIE

Table 11:
EXPORT PERFORMANCE OF SELECT CONSTRUCTION AND MINING
MACHINERY (2006-07) (US $ Million)
ITC HS Description Exports Imports
Code
8425 Pulley, tackle and hoists other than 6.99 24.22
skip hoist; winches and capstans; jacks
8426 Derricks, cranes, mobile lifting frames etc 18.43 265.90
8427 Fork-lift trucks, other works trucks with lifts etc. 6.82 34.50
8428 Lifting, handling, loading & unload machines 27.44 342.97
8429 Self-propelled bulldozers, graders, scrapers etc. 26.59 283.05
8430 Other Machineries for moving, grading etc,
pile-extractors, snow-ploughs etc 44.03 285.40
Total 130.30 1236.04
SOURCE: Directorate General of Commercial Intelligence and Statistics

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Process Plant Machinery
The process plant machinery and
components sector in India is a
heterogeneous segment of capital
goods industry. The sector caters
to a wide range of process
industries like oil and gas,
petroleum refining, petrochemicals,
chemicals, fertilizers,
pharmaceuticals. metal processing,
cement, paper, sugar, and food
processing. The sector designs and
manufactures a wide range of
equipment and systems such as:
pressure vessels, columns, towers,
heat exchangers, multi-tubular
reactors, evaporators, crystallizers,
dryers, road/rail tankers, storage
equipments, equipment for dairy
and food processing, mineral
beneficiation equipments, rotary
kilns, equipments for solid-liquid
separation, equipment for water
and waste water treatment.
The sector is highly capital
intensive with a strong engineering
orientation (thus knowledge
intensive also), where the products
are mostly custom built. Hence
economies of scale have less
relevance in this sector except for the
machine, or labour utilization factor,
if workload is not uniform.
Due to the heterogeneous
nature of the sector, the process
plant industry is fragmented in
nature. Some large as well as
medium sized companies are well
diversified in terms of product range
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and areas of applications.
International companies (such as
Atlas Capco, Alfa Laval, J.L. Smith,
Sulzer) also have presence in India
through joint ventures or technology
tie-ups. Besides, the internationally
renowned consultants in the process
industries like Flour Daniel, Bechtel,
Foster Wheel, LG, Daelim, Jacobs,
Kvaerner, Mitsui Babcock, Linde,
ABB Lummus, Technip, Stone &
Webster, Udhe and Toyo
Engineering have offices in India.
The market size and major
players in select segments of
process plants / machineries are
given in Table - 12.
Few of the Indian companies
have made their mark in the export
arena due to their manufacturing skill
and quality. These companies are
equipped with modern machinery
and are producing sophisticated
equipments such as high-pressure
heat exchangers, spiral heat
exchangers, multi-wall vessels, air-
fin coolers, multi-tubular reactors etc.
Export and import of select process
plant equipment / machineries are
given in Table - 13.
Major categories of exports
include: machinery / plant, laboratory
equipment for heating or cooking
excl. household; centrifuge
machines, including dryers, filtering
or purifying machinery; metal rolling
mills and rolls thereof. India’s import
of process plant machinery were
mainly centrifuge machines,
49

Table 12:
MARKET SIZE AND LEADING PLAYERS IN PROCESS PLANTS,
MACHINERY AND EQUIPMENTS
Segments Market Size
(2006-07)
(Rs. Crores)
Chemical Machinery 2500
Cement Machinery 250
Sugar Machinery 700
Metallurgical Machinery 300
Total (above) 3750
SOURCE: Industry: Market Size and Shares, CMIE, 2008.
including dryers, filtering or purifying
machinery; machinery / plant,
laboratory equipment for heating or
cooking (excluding household use);
Metal rolling mills and rolls thereof;
refrigeration and freezing equipment,
electric or others; converters, ladles,
ingot moulds and casting machines
used in metallurgy. Exports in the last
couple of years have grown at a
CAGR of 36%, while the import
growth (CAGR) has been
around 49%.
Electrical Equipments and
Machinery
The electrical equipment and
machinery sector comprises a
range of products, such as
transformers, switchgears, motors,
generators and control equipment.
Electrical equipment and machinery
is principally used in the power
50
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Leading Players
L&T, Godrej, Ingersoll-Rand, Bharat
Heavy Plate and Vessel, Tema
India.
L&T, Walchandnagar Industries,
Alsthom, KCP, CIMMCO
Thyssenkrupp, Fives Cail KCP,
Texmaco.
L&T, Tata Steel, Disa India, Mukand
industry (generation, transmission
and distribution) as well as in other
manufacturing industries, such as
automobiles, cement, steel,
petrochemicals and refining.
A few large players, such as
BHEL, ABB, Alstom, Siemens, and
Crompton Greaves, dominate the
electrical equipment industry.
However, there are several small and
medium sized players specializing in
specific product lines. The raw
material cost in total operating cost
of the sector is estimated to be
significant. The primary raw
materials are copper, aluminium and
steel.
Indian electric machinery sector
caters to most of the indigenous
demand. In select segments,
especially to meet the demand for
highly sophisticated equipments,
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Table 13:
EXPORT OF SELECT PROCESS PLANT EQUIPMENTS / MACHINERY
FROM INDIA (2006-07)
ITC HS Description US $ Million
Code Exports Imports
8402 Vapour generating boilers 74.89 19.56
(excluding central heating water boilers),
8403 Control heating boilers 12.31 2.09
8404 Auxiliary plant used with boilers, condenser
from steam and other vapour power unit 24.12 8.49
8410 Hydraulic turbines, water wheels, regulators 9.89 21.11
8416 Furnace burners for liquid fuels, for pulverized
soil fuel, for gas; mechanical stockers, etc., 10.32 30.49
8417 Industrial or laboratory furnaces or ovens,
non-electric 28.77 126.99
8418 Refrigeration and freezing equipment,
electric or others 92.61 175.92
8419 Machinery / Plant, laboratory equipment for
heating or cooking excl. household. 257.54 293.25
8420 Calendering / Rolling machines 10.46 14.04
8421 Centrifuge machines, including dryers;
filtering or purifying machinery 116.25 342.99
8435 Presses, crushers or similar machinery used
in manufacture of wine, cider, fruit juices 5.81 9.9
8438 Other industrial machinery in preparation of
food / drink etc., 60.72 60.72
8454 Converters, ladles, ingot moulds and casting
machines used in metallurgy 37.45 163.36
8455 Metal rolling mills and rolls thereof 104.7 243.72
Total 822.07 1512.63
SOURCE: Directorate General of Commercial Intelligence and Statistics

sourcing is done through imports. 2002-03 onwards. The structure of

Switchgear is the fastest growing
segment of this industry. Both
production and sales of electrical
equipment has shown steady rise in
the recent times, particularly from
the electric equipment sector is given
in Exhibit -15. The market size of the
electrical equipment sector is given
in Table - 14.

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Exhibit: 15:
STRUCTURE OF THE ELECTRIC EQUIPMENT INDUSTRY

Transformer Sector forefront for over 50 years and has

Transformer is a crucial component
in transmission and distribution of
electricity. The transformer industry
is usually divided into distribution
transformers, power transformers
and other types of special
transformers for welding, traction,
furnace etc. The transformer
industry in India has been in the
a well-matured technology-base in
the sub-segment of up to 800 KV.
The transformer market in India is
in a growth path, as there is a
growing demand for power in the
country. There are about 150
transformer companies in India,
with an overall production of over
90,000 MVA per annum.

Table 14:
MARKET SIZE AND LEADING PLAYERS IN TRANSFORMER INDUSTRY
Segments Market Size Leading Players
(2006-07)
(Rs. Crores)
Transformers 6000.00 Crompton Greaves (Rs. 998.75 crs)
Vijay Electricals (Rs. 987.82 crs)
BHEL (Rs. 611.83 crs)
EMCO (Rs. 542.78 crs)
Areva (Rs. 463.69 crs)

SOURCE: Industry: Market Size and Shares, CMIE, 2008.

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The turnover of the transformer India is also an importer of

industry in India is showing a steady electric transformers; in the year
rise in the last few years. India is self- 2006-07, India imported
reliant in respect of the resources for transformers valued US $ 557
prime materials and testing facilities. million, a growth of 37% over the
Manufacturing facility for Cold-Rolled previous year. India’s major source
Grain Oriented (CRGO) steel, countries include China, Germany,
winding conductors, bushings up to USA, Singapore and Japan. China
420KV class etc. are well alone accounts for about 40% of
established. India’s total transformer imports.
Besides catering to the domestic
demand, India is exporting Switchgear and Control gear
transformers to over 100 countries Sector
covering USA, Europe, Syria, Switchgears and control gears are
Malaysia, Singapore, Bangladesh, required for transmission and
Oman and China. In the year 2006- distribution of power and are
07, India’s export of transformers necessary at every switching point
amounted to US $ 645 million, a in power transmission and
growth of 74% over the previous distribution system. This sector is
year. fully developed and matured one in
Table 15:
INDIA’S EXPORT OF ELECTRIC TRANSFORMERS,
STATIC CONVERTERS AND INDUCTORS
HS Code 8504 (2006-07)
Sl No Export Destination Value Share (%)
(US $ Million)
World 645.46 100.00
1. USA 192.64 29.85
2. The Netherlands 103.24 15.99
3. Syria 37.62 5.82
4. UK 27.84 4.31
5. Malaysia 19.51 3.02
6. UAE 18.67 2.89
7. Singapore 18.08 2.80
8. Bangladesh 17.50 2.71
9. Oman 17.45 2.70
10. China 16.74 2.59

SOURCE: Directorate General of Commercial Intelligence and Statistics

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Table 16:
INDIA’S IMPORT OF ELECTRIC TRANSFORMERS,
STATIC CONVERTERS AND INDUCTORS
HS Code 8504 (2006-07)
Sl No Export Destination Value Share (%)
(US $ Million)
World 557.12 100.00
1. China 219.24 39.35
2. Germany 52.09 9.35
3. USA 40.77 7.31
4. Singapore 24.69 4.43
5. Japan 21.72 3.90
6. Thailand 17.86 3.20
7. Italy 15.79 2.83
8. Taiwan 14.88 2.67
9. Hong Kong 13.83 2.48
10. South Korea 13.06 2.34

SOURCE: Directorate General of Commercial Intelligence and Statistics

India, producing and supplying a various types of circuit breakers

wide range of products catering to
the needs of households,
commercial and power sector, for
entire voltage, ranging from 240 V
to 800 KV. Major players in the
switchgear segment are Siemens,
ABB, Crompton Greaves, Areva
and Havells. The switchgear
products can be broadly
categorised into the following three
groups:

Low Voltage (LV) Switchgear
(upto 1000 V) – mainly used
in domestic, power distribution
and industrial control system.

Medium Voltage (MV)
Switchgear (upto 36KV) –
product range mainly include
(below 36KV).

High Voltage (HV) Switchgear
– product range include
switchgears above 36KV, such
as SF6 (Sulphur Hexafluoride)
breaker, gas insulated
switchgear, lighting arresters
and composite insulators.
India has been exporting
switchgears and control gears to
various countries. In the year 2006-
07, India exported switching
apparatus (not exceeding 1000v)
valued at US $ 234 million, a growth
of 28% over the previous year. In
addition, India also exported
switching apparatus (exceeding
1000v) worth US $ 90 million in

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Table 17:
MARKET SIZE AND LEADING PLAYERS IN SWITCHGEAR INDUSTRY
Segments Market Size Leading Players
(2006-07)
(Rs. Crores)
Switchgears 6000.00 Siemens (Rs. 936.85 crs)
ABB (Rs. 921.53 crs)
Crompton Greaves (Rs. 872.66 crs)
Areva (Rs. 565.42 crs)
Havells (Rs. 533.74 crs)

SOURCE: Industry: Market Size and Shares, CMIE, 2008.

2006-07, a growth of 34% over the India is also an importer of

previous year. Major markets include switchgears and control gears. In the
UK, USA, Germany, UAE, year 2006-07, India imported
Philippines, Australia and Hong switchgears and control gears (not
Kong. exceeding 1000v) valued
Table 18:
INDIA’S EXPORT OF SWITCHING AND PROTECTING ELECTRICAL
CIRCUITS / APPARATUS (US $ Million in 2006-07)
Sl No Export to Switching Share (%) Switching Share (%)
apparatus apparatus
not exceeding
exceeding 1000v
1000v (HS code
(HS code 8535)
8536)
World 233.82 100.00 89.57 100.00
1. UK 42.17 18.03 11.23 12.54
2. USA 32.61 13.94 17.90 19.98
3. Germany 18.76 8.02 1.77 1.98
4. UAE 15.94 6.81 6.92 7.72
5. Philippines 7.05 3.01 0.60 0.67
6. Australia 6.57 2.81 1.40 0.42
7. Hong Kong 6.55 2.80 0.31 0.35
8. Saudi Arabia 6.09 2.60 2.24 2.50
9. Nigeria 5.66 2.42 0.46 0.51
10. France 5.64 2.41 2.80 3.12

SOURCE: Directorate General of Commercial Intelligence and Statistics

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Table 19:
INDIA’S IMPORT OF SWITCHING AND PROTECTING ELECTRICAL
CIRCUITS / APPARATUS
(US $ Million in 2006-07)
Sl No Import from Switching Share (%) Switching Share (%)
apparatus apparatus
not exceeding
exceeding 1000v
1000v (HS code
(HS code 8535)
8536)
1. Germany 96.23 20.82 11.98 23.61
2. China 64.92 14.05 5.29 10.42
3. USA 21.04 11.05 4.70 9.27
4. France 39.65 8.58 2.35 4.63
5. South Korea 29.98 6.49 1.25 2.46
6. Japan 26.30 5.69 1.15 2.27
7. Singapore 24.65 5.33 1.21 2.39
8. UK 21.64 4.68 1.66 3.27
9. UAE 12.07 2.61 0.40 0.79
10. Switzerland 9.65 2.08 10.54 20.78

SOURCE: Directorate General of Commercial Intelligence and Statistics

US $ 462 million in 2006-07. In the Market for capacitors in India is

same year, the import of switchgears
(exceeding 1000v) amounted to US
$ 51 million.
Capacitors
Capacitors are used for correcting
power factor at the consumer end,
to improve the efficiency of the
system and reducing unwanted
loses. LT capacitors, HT capacitors,
starting / running capacitors,
electrolytic motor starter capacitors,
and induction furnace capacitors
are some of the capacitors
manufactured in India.
worth more than Rs. 800 crores.
The domestic production is
estimated to be Rs. 400 crores, of
which exports being around Rs.
200 crores, while the import
demand was valued at Rs. 600
crores. Some of the firms engaged
in capacitor production are
Tibrewala Electronics, Varroc, ABB,
Keltron, and BHEL.
India’s export of electric
capacitors amounted to US $ 39
million in 2006-07, witnessing a
growth of 56% over the previous
year. USA is the major market for

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Indian electric capacitors with a In the year 2006-07, India imported

share of 11.6%, followed by Spain
and Qatar (10% each), Turkey and
UAE (6% each).
India’s import of electric
capacitors is greater than its exports.
electric capacitors valued US $ 135
million, a growth of 14% over the
previous year. China is the main
source country for India, accounting
for one-fourth of total imports. India’s

Table 20:
MARKET SIZE AND LEADING PLAYERS IN CAPACITOR INDUSTRY
Segments Market Size Leading Players
(2006-07)
(Rs. Crores)
Capacitors 400 Tibrewala Electronics (Rs. 54.16 crs)
Varroc (Rs. 37.19 crs)
ABB (Rs. 32.38 crs)
Keltron (Rs. 20.44 crs)
BHEL (Rs. 19.71 crs)

SOURCE: Industry: Market Size and Shares, CMIE, 2008.

Table 21:
INDIA’S EXPORT OF ELECTRIC CAPACITORS
HS Code 8532 (2006-07)
Sl No Export Destination Value Share (%)
(US $ Million)
World 39.48 100.00
1. USA 4.58 11.60
2. Spain 4.01 10.15
3. Qatar 3.86 9.78
4. Turkey 3.50 6.41
5. UAE 2.53 6.00
6. Brazil 2.37 5.87
7. Portugal 2.32 3.24
8. Germany 1.28 2.96
9. Hong Kong 1.17 2.79
10. Saudi Arabia 1.10 2.71

SOURCE: Directorate General of Commercial Intelligence and Statistics

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Table 22:
INDIA’S IMPORT OF ELECTRIC CAPACITORS
HS Code 8532 (2006-07)
Sl No Import from Value Share (%)
(US $ Million)
World 135.31 100.00
1. China 33.12 24.48
2. USA 18.88 13.95
3. Singapore 17.79 13.14
4. Germany 9.49 7.01
5. Taiwan 7.21 5.32
6. Japan 6.67 4.92
7. South Korea 6.64 4.91
8. Hong Kong 6.62 4.89
9. Czech Republic 5.05 3.73
10. France 2.90 2.14

SOURCE: Directorate General of Commercial Intelligence and Statistics

other major source countries include: Mumbai and Kolkata. Organized

USA (14%), Singapore (13%),
Germany (7%), Taiwan and Japan
(5% each).
Motors and Generators
The generator industry has two
segments: portable sets, which run
on kerosene, petrol and diesel; and
stationary sets, which run primarily
on diesel. Large number of players
are engaged in production of
generators, particularly in the lower
KVA generator (3 to 15 KVA)
segment. This segment is
characterized by simple technology
and hence dominated by the small
and medium enterprises (SMEs).
These SME units are concentrated
mainly in Agra, Rajkot, Kolhapur,
sector accounts for 33% of total
production. Major brands from this
segment are Kiloskar Electric and
Crompton Greaves.
Electric motor segment on the
other hand is dominated by the
organized sector, with around 60
companies engaged in production.
In addition, there are nearly 3000
units in the small and medium sector
manufacturing low capacity motors.
Motors and generators market
together is worth over Rs 5500
crores in India. India mainly exports
electric generating sets and rotary
converters (HS Code 8502), but
mainly imports electric motors and
generators (other than generating
sets) (HS Code 8501).

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Table 23:
MARKET SIZE AND LEADING PLAYERS IN MOTORS AND GENERATORS
Segments Market Size Leading Players
(2006-07)
(Rs. Crores)
Motors and Generators 5500 BHEL (Rs. 1354.45 crs)
Crompton Greaves (Rs. 797.36 crs)
Siemens (Rs. 549.66 crs)
Powerica (Rs. 484.39 crs)
Sidhir Gensets (Rs. 398.72 crs)

SOURCE: Industry: Market Size and Shares, CMIE, 2008.

In the year 2006-07, India’s hand, India’s import of electric

export of electric motors and generating sets (HS Code 8502) was
generators (HS Code 8501) was valued at US $ 114 million, and the
valued at US $ 133 million, whereas import of electric motors and
India’s export of electric generating generators (HS Code 8501) was
sets and rotary converters (HS Code valued at US 244 million. China,
8502) amounted to US $ 361 million. Germany, USA and South Korea are
USA is the largest market for export major importers under both the
of both the categories. On the other categories.
Table 24:
INDIA’S EXPORT OF ELECTRIC MOTORS AND GENERATORS
US $ Million (2006-07)
Sl No Export Elec. Share (%) Electric Share (%)
Destination Generating motors and
sets generators
(HS 8502) (HS 8501)
World 361.43 100.00 133.30 100.00
1. USA 274.95 76.07 51.76 38.82
2. Portugal 14.88 4.11 Neg Neg
3. Mali 11.64 3.22 1.49 1.11
4. UAE 6.59 1.82 5.03 3.77
5. Turkey 3.64 1.01 0.76 0.57
6. Japan 3.27 0.90 1.75 1.31
7. Australia 2.55 0.70 0.21 0.16
8. Chad 2.53 0.70 Neg Neg
9. Ghana 2.31 0.64 0.23 0.17
10. Saudi Arabia 2.23 0.62 10.51 7.88

SOURCE: Directorate General of Commercial Intelligence and Statistics

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Table 25:
INDIA’S IMPORT OF ELECTRIC MOTORS AND GENERATORS
US $ Million (2006-07)
Sl No Import from Electric Share (%) Elec. Share (%)
motors and Generating
generators sets
(HS 8501) (HS 8502)
World 244.43 100.00 114.10 100.00
1. China 43.70 17.88 15.63 13.70
2. Germany 38.89 15.91 26.32 23.07
3. USA 21.91 8.96 8.83 7.74
4. South Korea 21.49 8.79 0.12 0.11
5. Italy 15.10 6.18 1.68 1.47
6. Japan 13.75 5.62 7.35 6.44
7. UK 12.94 5.29 2.82 2.47
8. Finland 9.73 3.98 5.63 4.93
9. Singapore 6.67 2.73 13.60 11.92
10. Switzerland 6.62 2.71 0.20 0.17

SOURCE: Directorate General of Commercial Intelligence and Statistics

In sum, the capital goods tools under the category of non-

industry in India is witnessing
turnaround since the last few years.
The index of industrial production for
the capital goods industry is
witnessing an increasing trend since
2002-03. Exports by various sub-
segments of the capital goods
industry is also on the increase,
especially with regard to machine
electrical machinery; and
transformers, switchgears, electric
generating sets under the electrical
machinery category. India is a net
importer in most of the products, as
the leading players are expanding
their capacities and the country is on
the manufacturing growth path.

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4. EXIM BANK’S SUPPORT TO
INDIAN MACHINE TOOLS
SECTOR: CASE STUDY
BACKGROUND
The economic reforms increased
the competition to Indian industry,
both in domestic and foreign
markets. This resulted in
transformation of Indian
manufacturing sector, which has
been increasingly seeking
technological solutions that help the
sector in sharpening their
competitiveness, both in domestic
and international markets. At this
juncture, Export-Import Bank of
India (Exim Bank) identified Indian
machine tools sector – a sub-
segment of Indian capital goods
industry, and brought a study
identifying appropriate strategies to
strengthen this sector, and thereby
help contribute to the growth of
Indian manufacturing sector.
The study on Indian machine
tools sector, captured the trends in
global and Indian machine tools
sector, analysed the potential
competition from countries such as
China and Taiwan, and
recommended an agenda for
development. One such
recommendation made by the study
was that the Indian Machine Tools
Manufacturers Association (IMTMA)
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to adopt a cluster approach, seeking
support from United Nations
Industrial Development Organisation
(UNIDO) and the Government of
India (the then Department of Small
Scale Industries), to help the
member-firms in overcoming the
weaknesses, by adopting best
practices in the industry across the
globe.
NATIONAL PROGRAMME FOR
DEVELOPMENT OF MACHINE
TOOL INDUSTRY
Following this recommendation, at
the instance of the industry, a
National Programme for
Development of Indian Machine
Tool Industry (NPDMI) was
launched in December 2002, as a
cooperative effort of UNIDO,
Government of India, Exim Bank
and IMTMA.
Objectives
The objectives of the programme
include:

Strengthening the competitive
position of the Indian machine
tool Industry in the global
market;
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Strengthening the technological
and market development
capacity of players of the
industry; and

To achieve high growth in CNC
machine tool production,
ushering in an era of e-
commerce in machine tool
trade, and establishing ‘Made
in India’ label in machine tools.
Steering Committee
A Steering Committee was formed,
drawing expertise from various
fields, to guide successful
implementation of the project. Exim
Bank’s representation in the
Committee significantly contributed
to the successful implementation of
the programme.
Activities
Range of activities was undertaken
to update the manufacturing and
management practices of the
players in Indian machine tools
sector. Evaluation of machine tool
technology and market trends in
USA and Europe was undertaken
through surveys. Visit to EMO Milan
(a biennial trade show for machine
tools held in Italy) helped the
industry to study the global
technological trends in the machine
tools sector, and undertake gap-
analysis of technology in Indian
machine tools sector. Participation
also helped the players to
undertake appropriate technology
62
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improvements in their units.
Followed by this was a group
participation in BIMU Milan (Italian
Machine Tools Production Systems
Show) by the machine tool
manufacturers under the banner of
India – UNIDO. This event alone
was estimated to have generated
a business of around US $ 5.5
million, representing around 5% of
annual exports of the sector in
2002-03.
As a part of the programme,
delegations comprising machine tool
manufacturers attended the China
International Machine Tool Show and
Canton Fair (China Import and
Export Fair). Technology Survey was
also conducted during the
International Manufacturing
Technology Show held at Chicago.
Learning through participation in
international trade shows were
supplemented with showcasing the
capabilities of Indian machine tool
manufacturers in India. A group of
firms were encouraged to participate
and showcase their capabilities in
National Manufacturing and
Technology Show. With the objective
of bringing together the machine tool
manufacturers and their sub-system
suppliers, a ‘Machine Tool
Manufacturers and Vendors Meet’
was organized during this show. End
user surveys were also conducted in
various machine tool clusters in
India. During such interactions
improvements needed in Indian

machine tool designs and quality
were passed on to the vendors. In
addition, a two-day international
seminar on ‘Machining Technologies’
was organized, focussing on
emerging technologies in machining
process, and volume production, to
analyse the international trends in the
metal-cutting machine tool industry.
To bridge the technology gap,
especially in the small and medium
segment, a series of advanced
machine tool design courses were
organized at International Centre for
Advancement of Manufacturing
Technology (ICAMT), Bangalore.
Such courses helped the industry in
creating new breed of machine tool
technologists and improvement in
machine design. In addition, training
programmes on foundry
technologies and materials
engineering, quality management
Exhibit 16:
PRODUCTION AND EXPORT PERFORMANCE OF INDIAN MACHINE
TOOLS SECTOR
SOURCE: Exim Research; Data complied from Indian Machine Tools
Manufacturers Association and Directorate General of Commercial Intelligence
Statistics, Government of India
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systems, precision measurement
and calibration equipment, heat
treatment, machine tool ergonomics
and aesthetics were also taken place
on a regular basis.
Outcome
It may thus be fair to surmise that
as a result of range of such
activities, the production and export
of Indian machine tools sector have
gone up over the years. ‘Made in
India’ label of Indian machine tool
sector has gained international
reputation making the sector more
competitive in domestic as well as
international markets.. Ministry of
Small Scale Industries, Government
of India selected the machine tool
sector as a theme for the Fourth
SSI Convention, held in the year
2003. UNIDO declared this initiative
as a success story.
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FINANCING SUPPORT
Exim Bank has been closely
associated with the export efforts
of Indian machine tools sector. The
Bank has been supporting the
machine tool sector to modernise
and upgrade their production
facilities, adaptation of technology
and internationally acceptable
standards through its various
financing products and services.
Bangalore International
Exhibition Centre
IMTMA, with the objective of
showcasing the capabilities of
Indian industry, particularly the
64
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machine tools sector, has set up
the Bangalore International
Exhibition Centre (BIEC). The focus
at BIEC is not only to house the
IMTMA’s international machine tool
exhibition – IMTEX and other
IMTMA-organised events, but also
to make available the facilties to the
Indian industry for scheduling
international events. BIEC has set
in place a strategic partnership with
Deutsche Messe AG – owners of
world’s one of the largest exhibition
facilities in Hannover, Germany, for
international marketing. Exim Bank,
under its export facilitation
programme, has supported IMTMA
in setting up this exhibition facility.

5. INDIAN CAPITAL GOODS
INDUSTRY: MARKET ANALYSIS
AND EXPORT POTENTIAL
As the capital goods industry
provides machinery and equipments
for the manufacturing sector,
performance of this sector is linked
to the overall growth of the
manufacturing sector. Achieving
competitiveness in this sector is
possible with continually sustaining
the growth in production and
productivity, market penetration and
expansion, characterized by growth
in exports. Thus, in a globalized era,
the competitiveness of Indian capital
goods industry is influenced by not
only the growth in production but also
by external factors such as world
market for capital goods, India’s
position vis-à-vis other major
suppliers.
Globally the capital goods
industry is worth around US $ 4.5
trillion industry. Germany, and USA
are traditionally large suppliers of
different segments of capital goods.
However, of late, Asian countries
such as China, Taiwan, and South
Korea have become major players
in production and export of capital
goods. Consumption of capital
goods has also increased
substantially in these countries due
to the thrust given to the
manufacturing sector.
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In this chapter, analysis has
been carried out to map the global
trends in import of select capital
goods, major export destinations for
Indian capital goods and potential for
Indian capital goods exporters, to
expand the market share, especially
in select developing country markets.
While there may also be
opportunities for market expansion
in developed countries such as USA
and EU, this study focusses on
opportunities available in developing
country markets, wherein
customization through product
development and price
competitiveness would help enhance
the market share of Indian capital
goods exporters.
NON-ELECTRICAL
MACHINERY
Machine Tools
Major categories of machine tools
imported in the world include
machine tools for working metal by
forging, hammering and die-
stamping (HS Code 8462); machine
tools for working in the hand,
pneumatic or self-contained non-
electric motor (HS Code 8467);
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Table 26:
WORLD IMPORT OF SELECT MACHINE TOOLS (US $ Million)
HS Code Description 2005 2006
8462 Machine tools for working metal by 7235.90 8789.42
forging, hammering and die-stamping
8467 Tools for working in the hand, pneumatic
or with self-contained non-electric motor 6686.53 7918.55
8457 Machining centers and multi station
transfer machines for working metal 6228.92 7193.36
8465 Machine tools for working wood, cork,
bone, hard rubber, hard plastics etc.,. 6147.15 7091.63
8458 Lathes for removing metal 5325.93 5983.42
8460 Machine tools for deburring, sharpening,
grinding, honing, lapping, polishing metals 3424.22 3732.78
8464 Machine tools for working stones,
ceramics, concrete, asbestos-cement or
other mineral materials 3349.85 4271.03
8459 Machine tools for drilling, boring,
milling, threading or tapping by removing
metals other than lathes 3049.85 3646.65
8461 Machine tools for planing, shaping,
slotting, broaching, gear-cutting,
grinding or finishing, working by
removing metals 1956.53 2393.71
8463 Other machine tools for working metal,
sintered metal carbides without removing
materials 1594.65 1809.02

SOURCE: UN COMTRADE

machining centers and multi station hammering and die-stamping (HS

transfer machines for working
metals (HS Code 8457); and
machine tools for working wood,
cork, bone, hard rubber, hard
plastics etc. (HS Code 8465).
Machine tools for working
metal by forging, hammering
and die-stamping
(HS Code 8462)
Major importers of machine tools
for working metal by forging,
Code 8462) include China, USA,
Germany and France. India is 15th
largest importer in the world with
its import amounting to US $ 275
million in 2006. China’s import
demand has been principally
catered by countries such as Japan
and Taiwan in the Asia region;
Germany is one of the largest
source countries for China’s imports
outside Asia. Germany has been
importing this category of machine

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tools principally from regional
countries such as Italy, Switzerland,
France and Austria. USA has been
principally importing from countries
such as Germany, Canada, Italy
and UK.
India has been exporting this
category of machine tools primarily
to Nigeria, UAE and Iran, in addition
to developed countries such as USA
and Canada. In the year 2005,
Nigeria imported machine tools
under this category valued US $ 9
million. India was the principal source
country for imports under this
category with around one-third
share. Other major source countries
for Nigeria include developed
countries such as Belgium and
Germany. For UAE, India is the
eighth largest source country for
import of machine tools under this
category. Though, UAE has been
sourcing principally from developed
countries such as Italy, Germany and
Spain; China is able to compete with
Table 27:
MARKET ANALYSIS FOR MACHINE TOOLS UNDER HS CODE 8462
Existing Major Major
Developing competitors
Country
Markets
for India
Nigeria Belgium and Germany
UAE Italy, Germany and
Spain
Iran Germany, Japan
and Italy
SOURCE: UN COMTRADE
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these developed countries. Indian
machine tool exporters may also
target UAE as a potential market for
enhancing their market share. India
is not a significant source country for
Iran, though Iran is one of the largest
markets for this category of machine
tools. Iran has been principally
sourcing from developed countries
such as Germany, Japan and Italy.
Thus, India has potential to enhance
its exports to Iran. In addition, Indian
machine tool exporters should also
target other developing countries
such as Mexico, Thailand and
Turkey, who are major developing
country importers.
Tools for working in the
hand, pneumatic or with self-
contained non-electric motor
(HS Code 8467)
Major importers of machine tools
working in hand, pneumatic or self-
contained non-electric motor
category include USA, Mexico,
Major Major
Developing Competitors
Country
Importers
in the World
Mexico USA, Spain and Italy
Thailand Japan, Korea and
Taiwan
Turkey Italy, Germany and
Brazil
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Germany and France. India is 15th
largest importer in the world with
the value of imports being US $ 62
million in 2006. USA has been
mainly importing from Taiwan,
Japan and Germany, while the
import demand of Mexico has been
catered by Japan, Brazil and
Belgium. Major source countries for
Germany include Belgium, Malaysia
and China.
India’s major markets include
Belgium, USA, UK and Canada.
Amongst developing countries,
Nigeria, Sri Lanka and Kenya are the
major markets for India. It may be
noted that developed countries such
as Singapore, Germany, Italy and
USA are the major source countries
for import by Nigeria, Sri Lanka and
Kenya. China and Brazil, which are
developing countries, are other
major source countries. Thus, India
could endeavor to expand the market
share in developing countries such
as Nigeria, Sri Lanka and Kenya.
Countries such as Poland,
Indonesia and Czech Republic are
leading importers amongst
developing countries. However, India
is not a significant source country for
import of machine tools (HS Code
8467) for these countries. Indian
machine tool exporters may also
target these developing countries
through customized product
development, technology
adaptation, and by offering attractive
price.
Machining centers and multi
station transfer machines for
working metal (HS Code 8457)
Major world importers of machining
centers and multi-station transfer
machines for working metal (HS
Code 8457) include USA, China,
Germany and Belgium. China has
principally imported from countries
such as Japan, Germany and

Table 28:
MARKET ANALYSIS FOR MACHINE TOOLS UNDER HS CODE 8467
Existing Major Major Major Major
Developing competitors Developing Competitors
Country Country
Markets Importers
for India in the World

Nigeria Germany, Singapore Poland Germany, USA and

and UK Sweden
Sri Lanka Singapore, China Indonesia Singapore, China and
and Italy Canada
Kenya Brazil, Germany and Czech Republic Germany, Italy and
USA Austria

SOURCE: UN COMTRADE

68

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Taiwan. While the major source
countries for import (of machining
centers and multi-station transfer
machines) by Germany are Japan,
Switzerland, UK and Belgium; USA
has principally sourced machine
tools under this category from
countries such as Japan, Germany
and Taiwan. Amongst developing
countries, Mexico, Thailand and
Turkey are the major importers
under this category of machine
tools.
India, in the year 2006-07,
exported machine tools under this
category worth US $ 3.3 million. Italy
is the major market for Indian
machine tools under this category in
2006-07. However, amongst
developing countries, India has been
exporting mainly to Nigeria, UAE and
Israel. All these developing countries
are mainly importing from developed
countries, and thus offer potential for
Indian exporters to enhance the
market share. Taiwan is one of the
Table 29:
MARKET ANALYSIS FOR MACHINE TOOLS UNDER HS CODE 8457
Existing Major Major
Developing competitors
Country
Markets
for India
Nigeria Italy, Germany
and Taiwan
UAE Italy, Germany and USA
Israel Germany, Taiwan
and UK
SOURCE: UN COMTRADE
CMYK
CMYK
leading sources for imports by these
developing countries, and thus is a
major competitor for India’s exports.
Machine tools for working
wood, cork, bone, hard
rubber, hard plastics etc.,.
(HS Code 8465)
Major world importers of machine
tools for working wood, cork, bone,
hard rubber, hard plastics (HS
Code 8465) include USA, China,
Germany and Russia. Poland and
Hong Kong are the leading
developing country exporters of
machine tools under this category.
USA has principally sourced its
import requirements from Germany
and Italy, whereas, China has
sourced its import requirements
from Japan, Hong Kong and
Taiwan. Germany has mainly
sourced from Austria and Italy.
In the year 2006-07, India’s
export of machine tools under this
category amounted to US $ 6.6
Major Major
Developing Competitors
Country
Importers
in the World
Mexico Germany, Japan and
USA
Thailand Japan, Taiwan and
Singapore
Turkey Taiwan, Germany and
Japan
69

million. India has mainly exported to
countries such as UAE, USA,
Thailand and Sudan. While UAE has
principally sourced from countries
such as Taiwan and Germany, major
source countries for Thailand include
Taiwan, Japan and Germany. Sudan,
though not a significant importer of
machine tools under this category,
has sourced its import requirements
from countries such as Austria and
Turkey. Indian machine tools
exporters may thus adopt
appropriate product development
and pricing strategies to enhance the
market share in developing countries,
such as UAE and Thailand.
Lathes for removing metal
(HS Code 8458)
Major importers of lathes for
removing metals (HS code 8458)
in the world include USA, Germany
and China. Developing countries
(other than China) that are major
Table 30:
MARKET ANALYSIS FOR MACHINE TOOLS UNDER HS CODE 8465
Existing Major Major
Developing competitors
Country
Markets
for India
UAE Taiwan, Germany
and India
Thailand Taiwan, Japan and
Germany
Sudan Austria, Turkey and Italy
SOURCE: UN COMTRADE
70
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importers of machine tools under
this category include Thailand,
Turkey and Hong Kong. USA has
principally sourced from countries
such as Japan, Korea and
Germany. While Germany has
sourced its import requirements
from Japan, Italy and Belgium, the
import demand of China has been
primarily sourced from Japan,
Taiwan and Hong Kong.
In the year 2006-07, India
exported lathes for removing metals
(HS Code 8458) valued US $ 20
million. Main markets for India under
this product category include USA,
Australia and Bangladesh. Some
other developing countries that are
major export markets for Indian
lathes include Brazil and UAE. While
India caters to significant volume of
import demand of Bangladesh under
this category, there is still space for
enhancement of exports. India’s
competitors in Brazil include Japan,
Major Major
Developing Competitors
Country
Importers
in the World
China Japan, Hong Kong
and Taiwan
Poland Germany, Italy and
Austria
Hong Kong Taiwan, Japan and
Germany

Germany and South Korea. The
import requirements of UAE, which
is an important market for India, is
met through imports from developed
countries such as Germany and UK.
China is the third largest source
country for import of machine tools
under this category by UAE.
Machine tools for de-burring,
sharpening, grinding, honing,
lapping, polishing metals (HS
Code 8460)
Major importers of machine tools
(for de-burring, sharpening, honing,
lapping and polishing metals) under
HS Code 8460 in the world include
China, USA and Germany. Among
developing countries, Thailand,
Turkey and Mexico are major
importers of machine tools under
this category. India is also one of
the major importers of machine
tools under this category. China has
principally sourced its requirements
Table 31:
MARKET ANALYSIS FOR MACHINE TOOLS UNDER HS CODE 8458
Existing Major Major
Developing competitors
Country
Markets
for India
Bangladesh Japan, Singapore
and China
Brazil Japan, Germany and
South Korea
UAE Germany, UK and China
SOURCE: UN COMTRADE
CMYK
CMYK
from Japan, Germany and Italy.
While USA has mainly imported
from Japan, Germany and
Switzerland, the requirements are
met in Germany through imports
from Switzerland, Italy and Sweden.
India, in the year 2006-07,
exported machine tools (under HS
code 8460) valued US $ 5.5 million,
Major developing country markets for
India include Nigeria, Malaysia and
UAE. Nigeria, which is not a major
importer of machine tools under this
category, mainly imported from
South Korea, Italy and China.
Malaysia, another major developing
country market for India, imported
principally from Japan, Singapore
and Taiwan, while UAE sourced its
import requirements from Japan,
Germany and Switzerland. India,
thus, has more room for export
expansion in these developing
countries, especially in Malaysia and
UAE.
Major Major
Developing Competitors
Country
Importers
in the World
Thailand Japan, Taiwan and
China
Turkey Taiwan, Japan and
Korea
Hong Kong Taiwan, Japan and
China
71
 CMYK

Table 32:
MARKET ANALYSIS FOR MACHINE TOOLS UNDER HS CODE 8460
Existing Major Major Major Major
Developing competitors Developing Competitors
Country Country
Markets Importers
for India in the World

Thailand Japan, Thailand and Nigeria South Korea, Italy

Taiwan and China
Turkey Germany, Switzerland Malaysia Japan, Singapore
and Italy and Taiwan
Mexico USA, Japan and Italy UAE Japan, Germany and
Switzerland

SOURCE: UN COMTRADE

Machine tools for working category worth US $ 3.5 million.

stones, ceramics, concrete,
asbestos-cement or other
mineral materials
(HS Code 8464)
Major importers of machine tools
for working stones, ceramics,
concrete, asbestos-cement (HS
Code 8464) in the world include
Taiwan, USA and China. Other than
Taiwan and China, the developing
country importers include Iran and
India. India, in the year 2006-07,
imported machine tools under this
category valued US $ 150 million.
Taiwan has principally sourced its
import requirements from Japan,
USA and South Korea, whereas,
China has principally sourced its
requirements from Japan,
Switzerland and Italy. Iran has
sourced its requirements from Italy,
Germany and Turkey.
India, in the year 2006-07,
exported machine tools under this
Major markets for India under this
category include developing
countries such as Yemen, Egypt and
Oman. Although in small quantity,
India is one of the major exporters
of machine tools under this category
to Yemen, Egypt and Oman. India’s
principal competitors in these
countries include Italy, Egypt and
Jordan.
Machine tools for drilling,
boring, milling, threading or
tapping by removing metals
other than lathes (HS Code
8459)
Major importers of machine tools
for drilling, boring, milling, threading
or tapping, by removing metals (HS
Code 8459) in the world include
China, USA and Germany. Select
developing countries that are
importers of machine tools under
this category include Thailand,

72

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Table 33:
MARKET ANALYSIS FOR MACHINE TOOLS UNDER HS CODE 8464
Existing Major Major
Developing competitors
Country
Markets
for India
Yemen Italy, Jordan and China
Egypt Italy, Japan and Belgium China
Oman Italy and Spain
SOURCE: UN COMTRADE
Hong Kong and Indonesia. India is
also one of the developing country
importers of machine tools under
this category. In the year 2006-07,
India’s imports were valued at US
$ 147 million. China has principally
sourced its import requirements
under this category from Japan,
Germany and Taiwan. Thailand and
Hong Kong have principally
sourced from countries such as
Japan, Taiwan, Singapore and
China.
In the year 2006-07, India
exported machine tools, under this
category, valued US $ 14.9 million.
Ukraine, Thailand and UAE are
major markets for Indian machine
tools under this category. While India
is largest source country for imports
by UAE, Ukraine has been principally
importing its requirements from
neighboring countries such as
Russia, Belarus and Germany.
Thailand, on the other hand, has
imported mainly from Japan, Taiwan
CMYK
CMYK
Major Major
Developing Competitors
Country
Importers
in the World
Taiwan Japan, USA and
South Korea
Japan, Switzerland
and Italy
Iran Italy, Germany and
Turkey
and Singapore. Thus, Indian
machine tool exporters may
concentrate in the markets of
Ukraine and Thailand for expansion
of market share.
Machine tools for planing,
shaping, slotting, broaching,
gear-cutting, grinding or
finishing, working by
removing metals (HS Code
8461)
Major importers of machine tools
for planing, shaping, slotting,
broaching, gear-cutting, grinding or
finishing by removing metals (HS
Code 8461) in the world are USA,
China, Germany and Japan.
Among the developing countries,
India, Poland, Thailand and
Indonesia are the leading importers.
In the year 2006-07, India imported
machine tools under this category
valued US $ 137 million. China,
Poland and Thailand have
principally imported from countries
73
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Table 34:
MARKET ANALYSIS FOR MACHINE TOOLS UNDER HS CODE 8459
Existing Major Major Major Major
Developing competitors Developing Competitors
Country Country
Markets Importers
for India in the World

Ukraine Russia, Belarus and China Japan, Germany and

Germany Taiwan
Thailand Japan, Taiwan and Thailand Japan, Taiwan and
Singapore Singapore
UAE UK, Germany and Hong Kong Japan,
China Taiwan and China

SOURCE: UN COMTRADE

such as Japan, Germany, Taiwan,
Italy and Singapore.
In the year 2006-07, India
exported machine tools under this
category valued US $ 6.6 million.
Major markets for India’s exports
include USA, UAE, Germany,
Turkey, UK and Sudan. Though UAE
is one of the largest market for India
for machine tools under this
category, the country has met its
requirements through imports from
Italy, China and USA. Similar is the
case with regard to Turkey and
Sudan, other major developing
country markets for Indian machine
tools. These two countries have
sourced their import requirements
from Germany, Italy, USA and
Taiwan. Indian machine tool
exporters have to formulate
appropriate strategies to enhance
their market presence in these
developing countries.

Table 35:
MARKET ANALYSIS FOR MACHINE TOOLS UNDER HS CODE 8461
Existing Major Major Major Major
Developing competitors Developing Competitors
Country Country
Markets Importers
for India in the World

UAE Italy, China and USA China Japan, Germany and

Taiwan
Turkey Germany, Italy and USA Poland Japan, Germany and
Italy
Sudan Italy, Turkey and Taiwan Thailand Japan, Taiwan and
Singapore

SOURCE: UN COMTRADE

74

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 CMYK

Textile Machinery Washing machines

Major categories of textile
machinery imported in the world
include general purpose washing
machines (HS Code 8450);
machinery for washing, drying,
wringing, ironing, pressing and
bleaching (HS Code 8451);
auxiliary machinery such as
dobbies and jacquards (HS Code
8448); machines for preparing
textile fibres, spinning and twisting
(HS Code 8445); knitting and
embroidery machines (HS Code
8447), and weaving machines (HS
Code 8446).
(HS code 8450)
Major importers of washing
machines in the world include USA,
Russia, UK and Germany. Among
developing countries, principal
importers include Ukraine, Poland
and Mexico. Though India is not a
significant importer of this item, in
the year 2006-07, India imported
washing machines valued US $ 34
million. Major source countries for
Ukraine, Poland and Mexico are
Italy, China, Slovakia and South
Korea.

Table 36:
WORLD IMPORT OF SELECT TEXTILE MACHINERY
(US $ Million)
HS Code Description 2005 2006
8450 Washing machines 10621.89 10808.17
8451 Machinery for washing, drying, wringing,
ironing, pressing, bleaching, dyeing,
dressing and finishing 5521.33 5781.94
8448 Auxiliary machinery such as dobbies,
jacquards etc 4310.48 4364.64
8445 Machines for preparing textile fibres,
spinning, twisting and other yarn
making machinery 3139.69 3551.21
8447 Knitting / stitch-bonding machines,
and other machines for making laces,
embroidery and trimmings 3120.17 3537.48
8446 Weaving machines (looms) 1563.5 2266.15
8449 Machinery for manufacture of finishing
felts or non-wovens 586.38 560.30
8444 Machines for extruding, drawing, texturing
or cutting man-made textile materials 541.63 635.10

SOURCE: UN COMTRADE

75

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In the year 2006-07, India
exported washing machines valued
US $ 7.3 million. Major markets for
Indian washing machines include
USA, Australia and UAE. Developing
countries such as Chile and Sri
Lanka were also major markets for
Indian washing machines, though
not very significant. India’s major
developing country markets such as
UAE, Chile and Sri Lanka have
sourced its import requirements from
mostly developing countries such as
China, Thailand, South Korea and
Brazil. Indian exporters have thus
room for market expansion in these
countries which could be achieved
through greater emphasis on
innovation and product development.
Machinery for washing,
drying, wringing, ironing,
pressing, bleaching, dyeing,
dressing and finishing
(HS code 8451)
Major importers of textile machinery
for washing, drying, wringing,
Table 37:
MARKET ANALYSIS FOR TEXTILE MACHINERY UNDER HS CODE 8450
Existing Major Major
Developing competitors
Country
Markets
for India
UAE China, Thailand and
South Korea
Chile China, Thailand and
Brazil
Sri Lanka China, Thailand and
Singapore
SOURCE: UN COMTRADE
76
CMYK
CMYK
ironing, pressing, bleaching, dyeing,
dressing and finishing in the world
are USA, China and Germany.
Major developing countries that are
importing machineries under this
heading include Turkey, Hong Kong
and Pakistan. India is also one of
the significant importers of
machineries under this category. In
the year 2006-07, India imported
machineries valued at US $ 248
million. Developing countries such
as Turkey, Hong Kong and
Pakistan have mainly imported their
machinery requirements from
countries such as Germany, Italy,
USA and China.
In the year 2006-07, India’s
export of textile machineries under
this category amounted to US $ 9.3
million. Major markets for India
include USA, Egypt, Indonesia and
Bangladesh. Developing countries
such as Egypt, Indonesia and
Bangladesh imported principally
from countries such as Italy,
Germany, Taiwan, South Korea and
Major Major
Developing Competitors
Country
Importers
in the World
Ukraine Italy, China and
Poland
Poland Italy, Slovakia
and Germany
Mexico USA, South Korea
and China
 CMYK

Table 38:
MARKET ANALYSIS FOR TEXTILE MACHINERY UNDER HS CODE 8451
Existing Major Major Major Major
Developing competitors Developing Competitors
Country Country
Markets Importers
for India in the World

Egypt Italy, Germany and Turkey Germany, Italy and

Japan USA
Indonesia Germany, Taiwan and Hong Kong China, Germany and
China USA
Bangladesh Germany, South Korea Pakistan Germany, Italy and
and Taiwan USA

SOURCE: UN COMTRADE

China. Indian exporters, through such as Germany, France, Belgium

product and technology
development, could enhance their
export opportunities in such
developing country markets.
Auxiliary machinery such as
dobbies, jacquards etc
(HS Code 8448)
Major importers of auxiliary textile
machinery in the world include
China, USA and Italy. Some of the
major developing country importers
include Turkey, Hong Kong and
Taiwan. India is also one of the
major developing country importers
of auxiliary textile machinery in the
world. In the year 2006-07, India
imported auxiliary machinery worth
US $ 241 million. Main source
countries for Turkey, Hong Kong
and Taiwan are European countries
and Italy. Asian countries such as
Japan and Singapore were also
major suppliers of auxiliary textile
machinery to these countries.
India’s export of auxiliary textile
machinery in the year 2006-07
amounted to US $ 61.3 million. Major
developing country markets for India
include Indonesia, China and
Bangladesh. In addition, India has
also exported to developed country
markets such as Germany and USA.
Close competitors for India in these
developing countries include Japan,
Germany, Switzerland, Italy, China
and Taiwan. Indian exporters should
thus undertake customized product
development to cater to the market
requirements and be price
competitive to enhance market share
in these countries.

77

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Table 39:
MARKET ANALYSIS FOR TEXTILE MACHINERY UNDER HS CODE 8448
Existing Major Major
Developing competitors
Country
Markets
for India
Indonesia Japan, Switzerland,
and Germany
China Germany, Japan and
Italy
Bangladesh Switzerland, China and
Taiwan
SOURCE: UN COMTRADE
Machines for preparing textile
fibres, spinning, twisting and
other yarn making machinery
(HS Code 8445)
Importing of spinning and yarn
making textile machinery in the
world is dominated by developing
countries. These include China,
Pakistan, Turkey and Bangladesh.
India is third largest importer of
spinning / yarn making machinery
in the world, the import value being
US $ 841 million in 2006-07. China,
Pakistan and Turkey, the largest
importers in the world have
principally sourced their import
requirements from countries such
as Germany, Japan, Switzerland,
Italy and USA.
India is also an exporter of
spinning and yarn making machines,
with the export value being US $ 18
million in 2006-07. India’s exports
were mainly destined to Chad,
Bangladesh and Indonesia. In the
year 2006-07, India exported
78
CMYK
CMYK
Major Major
Developing Competitors
Country
Importers
in the World
Turkey Germany, France and
Belgium
Hong Kong Germany, Japan and
Italy
Taiwan Singapore, Japan and
Germany
spinning / yarn making machinery
worth US $ 4 million to Chad alone,
and stood as the single largest
supplier. Both Bangladesh and India
have been sourcing their import
requirements from China, in addition
to Germany, Japan and Switzerland.
Knitting / stitch-bonding
machines, and other
machines for making laces,
embroidery and trimmings
(HS Code 8447)
Major importers of knitting / switch-
bonding machines in the world are
developing countries such as
China, Hong Kong, and Turkey.
India is also one of the leading
importers of knitting and switch-
bonding machines in the world. In
the year 2006-07, India imported
textile machinery, under this
category, valued US $ 389 million.
China, Germany, Japan, South
Korea and Taiwan are the leading
suppliers to these developing
country importers.
 CMYK

Table 40:
MARKET ANALYSIS FOR TEXTILE MACHINERY UNDER HS CODE 8445
Existing Major Major Major Major
Developing competitors Developing Competitors
Country Country
Markets Importers
for India in the World

Chad Germany China Japan, Italy and USA

Bangladesh Germany, China and Pakistan Japan, Germany and
Switzerland China
Indonesia Japan, China and Turkey Germany, Switzerland
Germany and Italy

SOURCE: UN COMTRADE

Table 41:
MARKET ANALYSIS FOR TEXTILE MACHINERY UNDER HS CODE 8447
Existing Major Major Major Major
Developing competitors Developing Competitors
Country Country
Markets Importers
for India in the World

Hong Kong Germany, China and Bangladesh Taiwan, China and

Italy Germany
Turkey Italy, Japan and Pakistan Japan, South Korea
Germany and China
China Germany, Japan and Thailand Germany, Japan and
Italy China

SOURCE: UN COMTRADE

India’s export of knitting and Weaving machines (looms)

stitch-bonding machines in the year
2006-07 was valued at US $ 3
million. Machinery under this
category has been mainly exported
to Hong Kong; other developing
country markets include Turkey and
China. These countries have
principally sourced from developed
countries such as Germany, Japan
and Italy.
(HS Code 8446)
Major importers of weaving
machines in the world are
developing countries, such as
China, India, Turkey and Pakistan.
India is the second largest importer
of weaving machines in the world,
next to China, with the import value
amounting to US $ 278 million in
2006-07. Japan, Italy, USA,

79

CMYK

Germany and Switzerland are
leading suppliers of weaving
machines to these importing
countries.
India also exported weaving
machines to the tune of US $ 5.4
million in 2006-07. Major export
markets for India include Thailand,
UAE and Vietnam. The competitors
for India in these markets are mainly
developed countries such as Japan,
Germany, Switzerland, USA and
Italy. In UAE, Pakistan is one of the
leading suppliers of weaving
machines.
Construction and Mining
Machinery
Major categories of construction
and mining machinery imported in
the world include: Self propelled
bulldozers, singledozers, graders,
levelers, scrapers, mechanical
shovels, excavators, and road
rollers (HS Code 8429); Other
lifting, handling, loading or
Table 42:
MARKET ANALYSIS FOR TEXTILE MACHINERY UNDER HS CODE 8446
Existing Major Major
Developing competitors
Country
Markets
for India
Thailand Japan, Germany and
Switzerland
UAE Switzerland, USA and
Pakistan
Vietnam Japan, USA and Italy
SOURCE: UN COMTRADE
80
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CMYK
unloading machinery (e.g. lifts,
conveyors, escalators) (HS Code
8428); Fork-lift trucks, other trucks
fitted with lifting or handling
equipments (HS Code 8427); Ships
derricks, cranes, mobile lifting
frames, straddle carriers (HS Code
8426); Other moving, grading,
leveling, scrapping, excavating,
compacting equipments (HS Code
8430); and Pulley tackle and hoists
other than skip hoists, winches and
jacks (HS Code 8425).
Self propelled bulldozers,
single-dozers, graders,
levelers, scrapers, mechanical
shovels, excavators, and road
rollers (HS Code 8429)
Major importers of self-propelled
bulldozers, single-dozers, graders,
levelers, scrapers, mechanical
shovels and road rollers (HS Code
8429) in the world are USA,
Canada, France and Italy. Amongst
developing countries, the major
Major Major
Developing Competitors
Country
Importers
in the World
China Japan, Italy and
Hong Kong
Turkey Italy, Switzerland and
Germany
Pakistan Japan, USA and Italy
 CMYK

Table 43:
WORLD IMPORT OF SELECT CONSTRUCTION AND MINING MACHINERY
(US $ Million)
HS Code Description 2005 2006
8429 Self propelled bulldozers, single-dozers, 29976.90 39109.45
graders, levelers, scrapers, mechanical
shovels, excavators, and road rollers
8428 Other lifting, handling, loading or 14718.39 18109.77
unloading machinery
(e.g. lifts, conveyors, escalators)
8427 Fork-lift trucks, other trucks fitted with 11208.56 11711.07
lifting or handling equipments
8426 Derricks, cranes, mobile lifting frames, 7981.73 10593.10
straddle carriers
8430 Other moving, grading, leveling, 6420.98 8947.39
scrapping, excavating,
compacting equipments
8425 Pulley tackle and hoists other than 3504.87 4223.10
skip hoists, winches and jacks

SOURCE: UN COMTRADE

importers are China, Indonesia, Other lifting, handling,

Turkey and Mexico. India has
imported construction machinery
under this category to the tune of
US $ 283 million in the year 2006-
07. Major developing country
importers have principally sourced
their requirements from Japan,
South Korea, Germany and UK.
India’s export of construction
machinery under the category (HS
Code 8429) amounted to US $ 27
million. Major export markets for
India include Singapore, Tunisia, Sri
Lanka and Togo. These countries
have principally sourced their import
requirements from countries such as
Belgium, Japan, UK, France, South
Korea and China.
loading or unloading
machinery (e.g. lifts,
conveyors, escalators)
(HS Code 8428)
Major importers of lifting, handling,
loading or unloading machinery
(under HS Code 8428) in the world
are USA, Germany, China and UK.
Amongst developing countries, the
major importers include Taiwan,
Mexico and UAE. India is also one
of the major developing-country-
importers of construction machinery
under this category, and imported
worth US $ 343 million in 2006-07.
India’s export of construction
machinery under this category

81

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 CMYK

Table 44:
MARKET ANALYSIS FOR CONSTRUCTION AND
MINING MACHINERY UNDER HS CODE 8429
Existing Major Major Major Major
Developing competitors Developing Competitors
Country Country
Markets Importers
for India in the World

Tunisia Belgium, South Korea China Hong Kong, Japan

and UK and South Korea
Sri Lanka Japan, UK and Indonesia Japan, Singapore
China and Germany
Togo China, France and Turkey Japan, South Korea
Belgium and UK

SOURCE: UN COMTRADE

amounted to US $ 27 million in importing from Germany, Italy,

2006-07. Major markets for India
include Belgium, Kenya,
Netherlands, USA and UAE. The
developing country markets such as
Kenya, UAE and Turkey are mainly
Japan, China and Thailand. India is
the second largest source country for
Kenya; however, with regard to
export to UAE and Turkey, India’s
ranking is not significant.

Table 45:
MARKET ANALYSIS FOR CONSTRUCTION AND MINING MACHINERY
UNDER HS CODE 8428
Existing Major Major Major Major
Developing competitors Developing Competitors
Country Country
Markets Importers
for India in the World

Kenya Germany, South Africa China Japan, Germany,

and China Taiwan
UAE Germany, China and Taiwan Japan, Germany and
Thailand USA
Turkey Germany, Italy and Mexico USA, Spain and Italy
Japan

SOURCE: UN COMTRADE

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Fork-lift trucks, other trucks
fitted with lifting or handling
equipments (HS Code 8427)
Major importers of fork-lifts or other
trucks fitted with lifting / handling
equipments (HS Code 8427)
include USA, France, UK and
Germany. Among developing
countries, China, Poland, Mexico
and South Africa are leading
importers. India is also an importer,
and its import in 2006-07 was
amounting to US $ 34 million.
These developing countries have
mainly sourced their import
requirements from developed
countries such as Japan, UK, USA,
France and the Netherlands.
India exported construction and
mining machinery, under this
category, valued US $ 6.8 million in
2006-07. While the products under
this category have also been
exported to developed countries like
Table 46:
MARKET ANALYSIS FOR CONSTRUCTION AND
MINING MACHINERY UNDER
HS CODE 8427
Existing Major Major
Developing competitors
Country
Markets
for India
Tanzania Netherlands, UK and
Italy
Chad USA
UAE Japan, UK,
and Netherlands
SOURCE: UN COMTRADE
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UK and USA, developing countries
such as Tanzania, Chad and UAE
were prominent markets for India’s
total exports under this category.
However, these countries have been
importing from developed countries
such as UK, Italy, USA, Netherlands
and Japan.
Derricks, cranes, mobile
lifting frames, straddle
carriers
(HS Code 8426)
Major importers of derricks, cranes,
straddle carriers, mobile lifting
frames, under HS Code 8426, in
the world are USA, Belgium, UAE
and France. Developing countries
that are major importers under this
category include Hong Kong, China
and Brazil. India’s import under this
category in 2006-07 was US $ 266
million. Major source countries for
Hong Kong, China and Brazil
Major Major
Developing Competitors
Country
Importers
in the World
China Japan, Hong Kong
and Italy
Poland UK, France and
Netherlands
Mexico USA, UK and Japan
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Table 47:
MARKET ANALYSIS FOR CONSTRUCTION
AND MINING MACHINERY UNDER
HS CODE 8426
Existing Major Major Major Major
Developing competitors Developing Competitors
Country Country
Markets Importers
for India in the World

UAE China, Japan and Hong Kong China, Japan and

Ireland Sweden
Oman China, Italy and Japan China Germany, Japan and
Malaysia
Iran China, Germany and Brazil Norway, China and
Italy Sweden

SOURCE: UN COMTRADE

include developed countries such Canada. Developing countries that

as Japan, Norway and Sweden.
China has been one of the principal
suppliers to Hong Kong and Brazil.
India’s export of derricks,
cranes, straddle carriers, mobile
lifting frames in the year 2006-07
was valued at US $ 18 million. Major
export destinations for India under
this category are developing
countries such as UAE, Oman, Iran
and Nigeria. Other than developed
countries such as Japan, Italy and
Germany, China has also been one
of the major source countries for
UAE, Oman and Iran.
Other moving, grading,
leveling, scrapping,
excavating, compacting
equipments (HS Code 8430)
Major importers of construction and
mining equipments under the
category, HS Code 8430, in the
world are USA, Spain, Russia and
are major importers under this
category are China, Angola and
UAE. India is also one of the major
importers amongst developing
countries under this category, with
import value of US $ 285 million in
2006-07. Major source countries for
import by China, Angola and
Kazakhstan are Germany, USA,
Italy and Finland. While South
Africa is one of the major source
countries for Angola; China is one
of the major source countries for
Kazakhstan.
India’s export under this
category, in 2006-07, was valued at
US $ 44 million. Major markets for
India include developed countries
such as Singapore, Australia and
USA, and developing countries such
as UAE, Togo and Qatar. These
countries have principally sourced
from developed countries such as
Italy, Germany, France and the
Netherlands. China is one of the

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Table 48:
MARKET ANALYSIS FOR CONSTRUCTION
AND MINING MACHINERY UNDER
HS CODE 8430
Existing Major Major Major Major
Developing competitors Developing Competitors
Country Country
Markets Importers
for India in the World

UAE Italy, Germany and China Germany, USA and

China Japan
Togo France, Netherlands Angola USA, South Africa and
and Spain Italy
Qatar Italy, France and Kazakhstan China, Finland and
Netherlands Germany

SOURCE: UN COMTRADE

principal source countries among France. Amongst developing

developing countries. countries, major importers include
China, Indonesia and UAE. These
Pulley tackle and hoists other countries have principally sourced
than skip hoists, winches and from Japan, Singapore, China,
jacks (HS Code 8425) Germany and USA. India’s import
Major importers of pulley tackle and of pulley tackle and hoists in the
hoists (HS Code 8425) in the world year 2006-07 was valued at US $
are USA, Germany, Canada and 24 million.
Table 49:
MARKET ANALYSIS FOR CONSTRUCTION
AND MINING MACHINERY UNDER
HS CODE 8425
Existing Major Major Major Major
Developing competitors Developing Competitors
Country Country
Markets Importers
for India in the World

UAE China, Germany and China Japan, South Korea

Japan and Singapore
Mauritius France, South Africa Indonesia Singapore, Japan and
and Italy China
Kuwait USA, Netherlands Mexico USA, China and
and Qatar Germany

SOURCE: UN COMTRADE

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India’s export of pulley tackle
and hoists in the year 2006-07 was
valued at US $ 7 million. Major
markets for India’s exports under this
category include developed
countries such as USA, Germany
and Singapore, and developing
countries such as UAE, Mauritius
and Kuwait. While UAE has
principally sourced from China,
Germany and Japan, source
countries for Mauritius were France,
South Africa and Italy. Kuwait has
principally sourced from countries
such as USA, Netherlands and Qatar.
Process Plant Machinery
Major categories of process plant
machinery imported in the world
include: Centrifuges, including
centrifugal dryers, filtering or
purifying machinery and apparatus
(HS Code 8421); Refrigerators,
freezers and other refrigerating or
freezing equipment (other than air
conditioners) (HS Code 8418);
Machinery, plant or lab equipment
for treatment of materials through
a process involving temperature
(HS Code 8419); Machinery not
specified elsewhere but used in
preparation or manufacture of food
or drink (HS Code 8438); Central
heating boilers other than those
heading 8402 (HS Code 8403);
Metal rolling mills and rolls thereof
(HS Code 8455); Industrial or
laboratory furnaces and ovens,
including incinerators (HS Code
8417); Steam or other vapour
generating boilers (HS Code 8402);
86
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Convertors, ladles, ingot moulds
and casting machines used in
metallurgy or metal foundries (HS
Code 8454); Furnace burners for
liquid fuel, mechanical stokers,
including their mechanical graters,
ash discharges etc. (HS Code
(8416); Calendaring or other rolling
machines other than for metals or
glass (HS Code 8420); Auxiliary
plant for use with boilers of heating
(HS Code 8404); Hydraulic
turbines, water wheels (HS Code
8410); and Presses, crushers and
similar machinery used in
manufacture of wine, cider or fruit
juices (HS Code 8435).
Centrifuges, including
centrifugal dryers, filtering or
purifying machinery and
apparatus (HS Code 8421)
Major importers of process plant
machinery under HS code 8421 in
the world are USA, Germany,
France and Canada. Among
developing countries, China,
Mexico and Taiwan are the leading
importers. Major source countries
for these developing countries
include Germany, Japan, USA and
Italy. India imported US $ 343
million worth of process plant
machinery under this category in
the year 2006-07.
India’s export under this
category during the same year was
valued US $ 116 million. USA, Italy
and Germany are leading developed
country markets for India’s exports.
 CMYK

Table 50:
World Import of Select Process Plant Machinery
(US $ Million)
HS Code Description 2005 2006
8421 Centrifuges, including centrifugal dryers, 27264.48 33880.62
filtering or purifying machinery and
apparatus
8418 Refrigerators, freezers and other 25286.32 30712.24
refrigerating or freezing equipment
(other than air conditioners)
8419 Machinery, plant or lab equipment for 21731.81 25650.96
treatment of materials through a
process involving temperature
8438 Machinery not specified elsewhere but 7762.71 8149.26
used in preparation or manufacture
of food or drink
8403 Central heating boilers other than 4614.04 5622.85
those heading 8402
8455 Metal rolling mills and rolls thereof 3876.29 5022.34
8417 Industrial or laboratory furnaces and 3185.45 3864.04
ovens, including incinerators
8402 Steam or other vapour generating boilers 2835.84 2503.21
8454 Convertors, ladles, ingot moulds and 2519.18 2991.45
casting machines used in metallurgy or
metal foundries
8416 Furnace burners for liquid fuel, 1839.80 2060.87
mechanical stokers, including their
mechanical graters, ash discharges etc.
8420 Calendaring or other rolling machines 1056.65 957.57
other than for metals or glass
8404 Auxiliary plant for use with boilers 922.45 1014.43
of heating
8410 Hydraulic turbines, water wheels 792.22 889.32
8435 Presses, crushers and similar machinery 314.48 300.02
used in manufacture of wine, cider or
fruit juices

SOURCE: UN COMTRADE

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Amongst developing countries, UAE,
Saudi Arabia, China, and Thailand
are leading importers for India under
this product category. USA,
Germany and Japan are leading
suppliers to these developing
countries.
Refrigerators, freezers and
other refrigerating or freezing
equipment (other than air
conditioners) (HS Code 8418)
Major importers of refrigerating and
freezing equipments (HS Code
8418) in the world are USA,
Germany, France and UK. Amongst
developing countries, China,
Mexico and Ukraine are the leading
importers. In the year 2006-07,
India imported equipments under
this category to the tune of US $
176 million. China has mainly
imported from regional suppliers
such as Singapore, Japan and
Table 51:
MARKET ANALYSIS FOR PROCESS PLANT MACHINERY
UNDER HS CODE 8421
Existing Major Major
Developing competitors
Country
Markets
for India
UAE USA, Germany and
Japan
Saudi Arabia USA, Germany and Italy
Thailand Japan, USA and
Germany
SOURCE: UN COMTRADE
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Hong Kong. While, Mexico has
mainly sourced from USA, other
sources for import of process plants
under this category include Asian
countries such as China and South
Korea. Ukraine has principally
sourced from regional suppliers
such as Russia and Belarus, in
addition to sourcing from Asian
supplier, South Korea.
India also exported refrigerating
and freezing equipments, with the
export value being US $ 93 million
in 2006-07. Major markets for Indian
refrigerating and freezing
equipments include UAE, Sri Lanka,
USA and Saudi Arabia. India is the
largest source country for Sri Lanka
under this product category. Other
major suppliers to Sri Lanka include
Indonesia, Singapore and Thailand.
UAE and Saudi Arabia have sourced
their import requirements, under this
product category, from USA, South
Korea and China.
Major Major
Developing Competitors
Country
Importers
in the World
China Germany, Japan and
USA
Mexico USA, Germany and
Italy
Taiwan Japan, USA and
Germany

Table 52:
MARKET ANALYSIS FOR PROCESS PLANT MACHINERY
UNDER HS CODE 8418
Existing Major Major
Developing competitors
Country
Markets
for India
UAE USA, South Korea
and China
Sri Lanka Indonesia, Singapore
and Thailand
Saudi Arabia Thailand, South Korea
and USA
SOURCE: UN COMTRADE
Machinery, plant or lab
equipment for treatment of
materials through a process
involving temperature
(HS Code 8419)
Major markets for process
equipments under HS Code 8419
in the world include USA and
Germany. Developing countries that
are major importers of process
equipments under this category
include China, Taiwan and Mexico.
These countries have principally
imported from USA, Germany and
Italy. India is also one of the major
developing country importers of
process equipments. In the year
2006-07, India imported process
equipments under this category
valued US $ 293 million.
India’s export of process
equipments under HS Code 8419
amounted to US $ 257 million in
2006-07. Major markets for India’s
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Major Major
Developing Competitors
Country
Importers
in the World
China Singapore, Japan and
Hong Kong
Mexico USA, Korea and
China
Ukraine Russia, Belarus, and
South Korea
imports include China, UAE, Oman,
UK and Saudi Arabia. India is fourth
largest supplier to Oman. Italy,
Germany and South Korea are the
leading source countries for UAE,
Oman and Saudi Arabia.
Machinery not specified
elsewhere but used in
preparation or manufacture of
food or drink (HS Code 8438)
Major importers of food/beverages
processing machinery under the HS
Code 8438 in the world are USA,
Russia, Germany and UK. Among
developing countries, major
importers of food / beverages
processing machinery include
China, Poland, Mexico and Chile.
These developing countries have
been principally importing from
developed countries such as USA,
Germany, Italy, Japan, Netherlands
and Denmark. India imported food
89
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Table 53:
MARKET ANALYSIS FOR PROCESS PLANT MACHINERY UNDER
HS CODE 8419
Existing Major Major Major Major
Developing competitors Developing Competitors
Country Country
Markets Importers
for India in the World

UAE Italy, Germany and China Germany, Japan and

France Taiwan
Oman South Korea, Italy Taiwan Japan, USA and
and Germany Germany
Saudi Arabia Italy, Germany and Mexico USA, Germany and
South Korea Italy

SOURCE: UN COMTRADE

/ beverages processing machinery, Lanka. India is the largest source

under HS Code 8438, to the tune country for import of food /
of US $ 61 million in 2006-07. beverages processing machinery for
Uganda and Sri Lanka, and second
India’s export of food /
largest source country for import by
beverages processing machinery,
Kenya. Other major source countries
under HS code 8438, was valued US
include Germany, Netherlands,
$ 37 million. Major markets for India
Japan, UK and Denmark.
include Kenya, Uganda and Sri

Table 54:
MARKET ANALYSIS FOR PROCESS PLANT MACHINERY UNDER
HS CODE 8438
Existing Major Major Major Major
Developing competitors Developing Competitors
Country Country
Markets Importers
for India in the World

Kenya UK, Denmark and China Germany, Japan and

Netherlands Netherlands
Uganda Iceland, UK and Poland Germany, Italy and
Germany Denmark
Sri Lanka Germany, Japan and Mexico USA, Germany and
Netherlands Italy

SOURCE: UN COMTRADE

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 CMYK

Central heating boilers other
than those heading 8402
(HS Code 8403)
Major importers of heating boilers
(HS Code 8403) in the world
include UK, Germany, Italy and
France. Among developing
countries, major importers are:
Turkey, Poland and Romania.
These developing countries have
primarily sourced their import
requirements from countries such
as Germany, Italy, France and
Hungary. India’s import of heating
boilers under this category was
valued at US $ 2 million in 2006-
07.
India’s export of heating boilers
(HS Code 8403) amounted to US $
12 million in 2006-07. Major markets
for India include Kenya, Chile, UK
and Vietnam. India is the largest
source country for Kenya and third
largest source country for Vietnam.
Kenya has also sourced its import
requirements from countries such as
Israel, South Africa and UK, while
Chile has sourced from Italy, Belgium
and Switzerland. Other major source
countries for Vietnam are Korea,
Thailand and Japan.
Metal rolling mills and rolls
thereof (HS Code 8455)
Major importers of metal rolling
mills (HS Code 8455) in the world
include China, USA, Russia, Saudi
Arabia and Iran. The developing
countries have principally imported
from developed countries such as
Germany, Italy, Spain and Japan.
Turkey has served as one of the
major suppliers to Saudi Arabia,
while Malaysia has catered supplies
to import by Iran. India imported
metal rolling mills (HS Code 8455)
worth US $ 244 million, in 2006-
07.

Table 55:
MARKET ANALYSIS FOR PROCESS PLANT MACHINERY UNDER
HS CODE 8403
Existing Major Major Major Major
Developing competitors Developing Competitors
Country Country
Markets Importers
for India in the World

Kenya Israel, South Africa Turkey Germany, Italy and

and UK France
Chile Italy, Belgium and Poland Germany, Italy and
Switzerland France
Vietnam Korea, Thailand and Romania Italy, Germany and
Japan Hungary

SOURCE: UN COMTRADE

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Table 56:
MARKET ANALYSIS FOR PROCESS PLANT MACHINERY UNDER
HS CODE 8455
Existing Major Major Major Major
Developing competitors Developing Competitors
Country Country
Markets Importers
for India in the World

Columbia USA, Brazil and Sweden China Japan, Germany and

Italy
UAE Italy, China and Taiwan Saudi Arabia Italy, Germany and
Turkey
Vietnam China, Italy and Japan Iran Italy, Spain and
Malaysia

SOURCE: UN COMTRADE

India’s export of metal rolling India imported laboratory furnaces

mills (HS Code 8455) in the year
2006-07 amounted to US $ 105
million. Major markets for India’s
exports include China, Columbia,
UAE, Iran and Vietnam. India is the
largest supplier of this product group
to UAE, and fourth largest supplier
to Vietnam.
Industrial or laboratory
furnaces and ovens, including
incinerators (HS Code 8417)
Major importers of industrial or
laboratory furnaces and ovens in
the world (HS Code 8417) include
China, USA, Russia, Germany,
Brazil and Taiwan. China has
sourced from Belgium, Germany
and Japan; China also served as
major source country for Brazil.
Germany is one of the largest
source countries for China and
Taiwan under this product group.
and ovens valued US $ 127 million
in 2006-07.
India’s exports, under this
product group, in the year 2006-07,
amounted to US $ 29 million. India
exported mainly to South Africa,
UAE, Iran and Qatar. These
countries have principally imported
from developed countries such as
Germany, Italy, USA, France and
Spain. China and India are the
second and third largest source
countries for import by UAE, under
this product category.
Steam or other vapour
generating boilers
(HS Code 8402)
Major importers of steam or other
vapour generating boilers in the
world (HS Code 8402) are USA,
Thailand, China, South Korea and

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Table 57:
MARKET ANALYSIS FOR PROCESS PLANT MACHINERY UNDER
HS CODE 8417
Existing Major Major Major Major
Developing competitors Developing Competitors
Country Country
Markets Importers
for India in the World

South Africa USA, Germany China Belgium, Germany

and Italy and Japan
UAE France, China Brazil China, Luxemburg
and Italy and Italy
Iran Germany, Italy and Taiwan Japan, Germany and
Spain Austria

SOURCE: UN COMTRADE

Indonesia. The developing India has also exported steam

countries such as Thailand and
Indonesia have sourced this
product primarily from Japan and
China; whereas China has sourced
its requirements through imports
from Japan, Taiwan and Denmark.
India imported US $ 20 million
worth of steam or other vapor
generating boilers in 2006-07.
Table 58:
MARKET ANALYSIS FOR PROCESS PLANT MACHINERY UNDER
HS CODE 8402
Existing Major Major
Developing competitors
Country
Markets
for India
or vapour generating boilers; the
exports in value terms stood at
around US $ 75 million in 2006-07.
Major markets for India include west
Asian countries such as UAE, Oman,
Saudi Arabia and Kuwait. These
countries have principally sourced
their import requirements from
developed countries such as UK,
Major Major
Developing Competitors
Country
Importers
in the World

UAE Italy, UK, and Spain Thailand Japan, China and

Taiwan
Oman South Korea, USA China Japan, Taiwan and
and Denmark Denmark
Saudi Arabia USA, UK and Japan Indonesia China, Japan and
Malaysia

SOURCE: UN COMTRADE

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USA, Japan, Italy, Spain and
Denmark. India served as fourth and
fifth largest source country for import
of steam or other vapour generating
boilers for Oman and UAE,
respectively.
Converters, ladles, ingot
moulds and casting machines
used in metallurgy or metal
foundries (HS Code 8454)
Major importers of metal processing
machinery, such as converters,
ladles, ingot moulds and casting
machines (HS Code 8454) in the
world are China, USA, Russia,
Germany and Ukraine. India is
fourth largest importer in the world
under this product category and
imported US $ 163 million worth of
metal processing machinery, under
this product group, in 2006-07.
Austria, Japan and Italy are the
major source countries for the
developing country importers under
this product group. China has also
Table 59:
MARKET ANALYSIS FOR PROCESS PLANT MACHINERY UNDER
HS CODE 8454
Existing Major Major
Developing competitors
Country
Markets
for India
Iran South Africa, Chile
and Armenia
Nigeria China, Italy and UK
UAE USA, Austria
and China
SOURCE: UN COMTRADE
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served as major source country for
the import requirements of
Indonesia.
India has also exported metal
processing machinery valued US $
37 million in 2006-07. Major markets
for India, for this product group,
include Iran, USA, Nigeria, UAE and
Hong Kong. India is the largest
source country for UAE, and second
largest source country for Nigeria, for
imports under this product category.
Other major source countries for
import of this product group by Iran,
Nigeria and UAE include China,
Austria, UK, USA, South Africa and
China.
Furnace burners for liquid
fuel, mechanical stokers,
including their mechanical
graters, ash discharges etc.
(HS Code (8416)
Major importers of process
machinery (HS Code 8416) such as
Major Major
Developing Competitors
Country
Importers
in the World
China Austria, Japan and
Italy
Ukraine Austria, Italy and
Poland
Indonesia Japan, China and
Taiwan

furnace burners, mechanical
stokers and graters in the world
include Germany, USA, France and
UK. Amongst developing countries,
major importers under this product
category include China, Turkey and
Iran. These developing countries
have principally imported from
Germany, Italy, UK and USA.
India’s import of process plants
under the category amounted to US
$ 30 million in 2006-07.
India’s export of process plants
(HS Code 8416) amounted to US $
10 million in 2006-07. Major
destinations of India’s exports under
this product category include Oman,
Germany, Nigeria, UAE and
Singapore. Luxemburg and UK have
principally served as source
countries for import of this product
group by Oman and Nigeria. UAE
has principally sourced from
Germany, USA and China.
Table 60:
MARKET ANALYSIS FOR PROCESS PLANT MACHINERY UNDER
HS CODE 8416
Existing Major Major
Developing competitors
Country
Markets
for India
Oman Luxemburg, UK and
Netherlands
Nigeria UK, Japan, and
Luxemburg
UAE Germany, USA and
China
SOURCE: UN COMTRADE
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Calandering or other rolling
machines other than for metals
or glass (HS Code 8420);
Major importers of calandering or
other rolling machines, other than
used for processing metals and
glass (HS Code 8420), in the world
include Sweden, USA, Canada and
Belgium, amongst developed
countries; and China, Taiwan and
Turkey, amongst developing
countries. Germany, Taiwan, Japan
and USA are major source
countries for import of this product
group by these developing
countries. India imported
calendaring and rolling machines
under this category to the tune of
US $ 14 million in 2006-07.
India’s exports of calendaring
and rolling machines (HS Code
8420) in the year 2006-07 amounted
to US $ 10 million in 2006-07. Major
Major Major
Developing Competitors
Country
Importers
in the World
China Germany, USA and
Italy
Turkey Italy, Germany
and UK
Iran Germany, UK
and Italy
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Table 61:
MARKET ANALYSIS FOR PROCESS PLANT MACHINERY UNDER
HS CODE 8420
Existing Major Major Major Major
Developing competitors Developing Competitors
Country Country
Markets Importers
for India in the World

Sudan Italy China Germany, Finland and

Taiwan
UAE USA, Italy and Qatar Taiwan Japan, Germany and
USA
Iran Italy, Germany and Turkey Italy, Germany and
Croatia Taiwan

SOURCE: UN COMTRADE

export destinations for India under US $ 8 million. While China has

this product category include for
Sudan, USA, UAE, Nepal and Iran.
Sudan and Nepal, India is the sole
exporter, except in some years, in
which negligible imports have been
witnessed from countries such as
Italy and South Africa. UAE has
principally imported from USA, Italy
and Qatar, while Iran has principally
imported from countries such as Italy,
Germany and Croatia.
Auxiliary plant for use with
boilers of heating
(HS Code 8404)
Major importers of auxiliary plant for
use with boilers (HS Code 8404)
in the world are China, USA,
Indonesia, India, Canada and
Mexico. India’s imports in the year
2006-07 under this product
category amounted to
sourced its import requirements
from countries such as Japan,
Spain and South Korea, it had
served as a major supplier to other
developing countries such as
Indonesia and Mexico. South Korea
is another major supplier for these
developing countries.
India’s export of auxiliary plants
for use with boilers for heating
purposes (HS Code 8404) amounted
to US $ 24 million in 2006-07. Major
markets for India under this product
category include Sudan, UAE,
Australia and Egypt. India is second
largest source country for UAE, and
third largest source country for
Sudan, under this product category.
Other major source countries include
developed countries such as UK,
USA, Italy and Netherlands.

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Table 62:
MARKET ANALYSIS FOR PROCESS PLANT MACHINERY UNDER
HS CODE 8404
Existing Major Major
Developing competitors
Country
Markets
for India
Sudan UK, Italy and China
UAE UK, Netherlands and
Spain
Egypt France, USA and UK.
SOURCE: UN COMTRADE
Hydraulic turbines, water
wheels (HS Code 8410)
Major importers of hydraulic
turbines and water wheels (HS
Code 8410) in the world are China,
USA, India, Iran and Turkey. India
imported hydraulic turbines and
water wheels to the tune of US $
21 million in 2006-07. China
imported hydraulic turbines and
water wheels from Austria,
Germany and Brazil. Major source
countries for import by Iran include
Austria, Switzerland and China; and
Austria, Russia and France for
Turkey.
India’s export of hydraulic
turbines and water wheels (HS Code
8410) in the year 2006-07 was
around US $ 10 million. Major
markets for India include Malaysia,
Vietnam, Saudi Arabia, Sudan and
UAE, under this product category.
India was the fourth largest source
country for Vietnam. Other major
CMYK
CMYK
Major Major
Developing Competitors
Country
Importers
in the World
China Japan, Spain and
South Korea
Indonesia Finland, South Korea
and China
Mexico South Korea, USA
and China
source countries for Vietnam include
China, Russia and Japan. Malaysia
imported products under this
category mainly from Germany,
Singapore and Italy; and Saudi
Arabia imported this product group
mainly from Belgium, UK and
France.
Presses, crushers and similar
machinery used in manufacture of
wine, cider or fruit juices
(HS Code 8435).
Major importers of presses,
crushers or other machinery used in
manufacture of wine and fruit juices
in the world include Spain, USA and
France. Amongst developing
countries major importers were
China, Venezuela and Iran. Major
source countries for these
developing countries include
Switzerland, Germany, Italy, USA
and China. India’s import under this
product group amounted to US $ 10
million in 2006-07.
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Table 63:
MARKET ANALYSIS FOR PROCESS PLANT MACHINERY UNDER
HS CODE 8410
Existing Major Major Major Major
Developing competitors Developing Competitors
Country Country
Markets Importers
for India in the World

Malaysia Germany, Singapore China Austria, Germany and

and Italy Brazil
Vietnam China, Russia and Iran Austria, Switzerland
Japan and China
Saudi Arabia Belgium, UK and Turkey Austria, Russia and
France France

SOURCE: UN COMTRADE

India’s export of presses, country for UAE and Kenya. Other

crushers or other machinery used in
manufacture of wine and fruit juices
(HS Code 8435) were valued at US
$ 6 million in 2006-07. Major
destinations of India’s exports
include USA, Nigeria, UAE and
Kenya. India is the largest source
major source countries for UAE
include France, Italy and Spain; and
major source countries for Kenya
include South Africa and Italy. Nigeria
principally sourced its import
requirements from China, Malaysia
and USA.

Table 64:
MARKET ANALYSIS FOR PROCESS PLANT MACHINERY UNDER
HS CODE 8435
Existing Major Major Major Major
Developing competitors Developing Competitors
Country Country
Markets Importers
for India in the World

Nigeria China, Malaysia and China Switzerland, Germany

USA and Italy
UAE France, Italy and Spain Venezuela USA, China and Italy
Kenya South Africa and Italy Iran South Africa
and Italy

SOURCE: UN COMTRADE

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Electrical Machinery Electrical transformers, static

Major categories of electrical
machinery imported in the world
include: Electrical transformers,
static converters and inductors (HS
Code 8504); Electrical apparatus
for switching or protecting electrical
circuits (exceeding 1000v) (HS
Code 8535); Electrical apparatus
for switching or protecting electrical
circuits (below 1000v) (HS Code
8536); Electrical capacitors, fixed,
adjustable or variable (HS Code
8532); Electric motors and
generators (excluding generating
sets) (HS Code 8501); and Electric
generating sets and rotary
converters (HS Code 8502).
converters and inductors (HS
Code 8504)
Major importers of electric
transformers, static converters, and
inductors (HS Code 8504) in the
world include USA, Germany and
Japan among developed countries,
and China, Hong Kong, Mexico and
Taiwan, among developing
countries. In the year 2006-07,
India imported electrical
transformers and static converters
to the tune of US $ 557 million.
Major source countries for China,
Hong Kong, Mexico and Taiwan for
their import under this category
include Japan, USA and South

Table 65:
WORLD IMPORT OF SELECT ELECTRICAL MACHINERY
(US $ Million)
HS Code Description 2005 2006
8504 Electrical transformers, static converters 44762.43 58350.41
and inductors
8535 Electrical apparatus for switching or 5674.36 5765.59
protecting electrical circuits
(exceeding 1000v)
8536 Electrical apparatus for switching or 55589.42 69930.51
protecting electrical circuits
(below 1000v)
8532 Electrical capacitors, fixed, 16153.77 20649.51
adjustable or variable
8501 Electric motors and generators 26833.51 33216.81
(excluding generating sets)
8502 Electric generating sets and 10666.41 15320.19
rotary converters

SOURCE: UN COMTRADE

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Korea. There has also been lot of Electrical apparatus for

trading amongst the triad, China,
Hong Kong and Taiwan.
In the year 2006-07, India
exported transformers and static
converters valued US $ 645 million.
Major countries to which India’s
transformers were exported include
USA and the Netherlands. Amongst
developing countries, India’s
transformers were exported to Syria,
Malaysia and UAE. India is the
largest supplier of transformers to
Syria. Other major source countries
for import of transformers by Syria
include China, France and Spain. In
both Malaysia and UAE, China is a
major supplier. Other major suppliers
to these countries include Singapore,
Hong Kong, Germany and Japan.
switching or protecting
electrical circuits (exceeding
1000v) (HS Code 8535)
Major importers of switchgears and
control gears (over 1000v) (HS
Code 8535) in the world include
USA, Germany and Spain.
Amongst developing countries,
China, UAE and Mexico are the
leading importers in the world.
China and Mexico have principally
sourced their import requirements
of products under this category
from Germany, Switzerland and
USA. Hong Kong has sourced its
requirements from Singapore,
Japan and Germany. India’s import
of switchgears and control gears
(over 1000v) amounted to around
US $ 51 million in 2006-07.

Table 66:
MARKET ANALYSIS FOR TRANSFORMERS UNDER
HS CODE 8504
Existing Major Major Major Major
Developing competitors Developing Competitors
Country Country
Markets Importers
for India in the World

Syria China, France and China Hong Kong,

Spain South Korea and
Japan
Malaysia Singapore, China and Hong Kong China, Japan and
Hong Kong USA
UAE Germany, China and Mexico USA, China and
Japan Hong Kong

SOURCE: UN COMTRADE

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Table 67:
MARKET ANALYSIS FOR SWITCHGEARS / CONTROL GEARS
(EXCEEDING 1000V) UNDER HS CODE 8535
Existing Major Major
Developing competitors
Country
Markets
for India
UAE France, Germany and
Japan
Brazil Germany, Sweden and
France
Vietnam Germany, Australia and
Sweden
SOURCE: UN COMTRADE
India’s export of switchgears and
control gears in the year 2006-07
amounted to around US $ 90 million
in 2006-07. Major destinations of
India’s exports under this product
category include USA, UK, and
France. Amongst developing
countries, UAE, Brazil and Vietnam
are the leading importers of Indian
switchgears and control gears (over
1000v). Germany, Sweden and
France are major source countries
for UAE, Brazil and Vietnam. In
addition, Japan is one of the major
source countries for UAE, while
Sweden is one of the major source
countries for Vietnam.
Electrical apparatus for
switching or protecting
electrical circuits
(below 1000v) (HS Code 8536)
Major importers of switchgears and
control gears (below 1000v) (HS
code 8536) in the world include
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Major Major
Developing Competitors
Country
Importers
in the World
China Japan, Germany and
Switzerland
Mexico USA, Germany and
Switzerland
Hong Kong Singapore, Japan and
Germany
USA, Germany and France
amongst developed countries, and
China, Hong Kong and Mexico
amongst developing countries.
While significant trade has been
happening between China and
Hong Kong, countries such as
Japan, USA and Germany
remained as major supplier
countries for these markets. India,
in the year 2006-07, imported
switchgears and control gears
valued US $ 462 million.
India’s export of switchgears and
control gears (below 1000v) in the
year 2006-07 was valued at US $
234 million. Major markets for India
include UK, USA and Germany.
Amongst developing countries, UAE,
Philippines and Saudi Arabia were
major markets for India. Import
requirements in these developing
country markets were catered by
developed countries such as
Germany, UK, France and Japan.
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Table 68:
MARKET ANALYSIS FOR SWITCHGEARS / CONTROL GEARS
(BELOW 1000V) UNDER HS CODE 8536
Existing Major Major Major Major
Developing competitors Developing Competitors
Country Country
Markets Importers
for India in the World

UAE France, UK, Germany China Hong Kong, Japan

and Taiwan
Philippines Japan, Singapore and Hong Kong China, Japan and
Hong Kong USA
Saudi Arabia USA, UK, and France Mexico USA, Japan and
Germany

SOURCE: UN COMTRADE

Electrical capacitors, fixed, Qatar has principally sourced from

adjustable or variable
(HS Code 8532)
Major importers of electrical
capacitors (HS Code 8532) in the
world are China, Hong Kong, USA
and Taiwan. Significant trade
happen amongst the major
developing country importers, viz.,
Hong Kong, China and Taiwan.
These three countries supply to
each other with regard to this
product category, in addition to
sourcing their requirements from
Japan. India’s imports under this
product category in the year 2006-
07 were of the order of US $ 135
million.
India’s exports under this
product category in the year 2006-
07 were valued at US $ 39 million.
Major markets for India include USA,
Spain, Qatar, Turkey and UAE. While
India, Turkey has sourced its
requirements from China, Italy and
South Korea. UAE has principally
sourced from China, Germany and
Sweden.
Electric motors and
generators (excluding
generating sets) (HS Code
8501)
Major importers of electric motors
and generators (HS Code 8501) in
the world are USA, Germany and
China. Amongst developing
countries, China, Hong Kong and
Mexico are the leading importers.
China has also served as one of
the major source countries for
imports, under this product
category, to Hong Kong and
Mexico. Similarly, Hong Kong has
served as one of the major source

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Table 69:
MARKET ANALYSIS FOR ELECTRIC CAPACITORS UNDER
HS CODE 8532
Existing Major Major Major Major
Developing competitors Developing Competitors
Country Country
Markets Importers
for India in the World

Qatar USA and Italy China Hong Kong, Japan

and Taiwan
Turkey China, Italy and Hong Kong China, Japan and
South Korea Taiwan
UAE China, Germany and Taiwan Japan, China and
Sweden Hong Kong

SOURCE: UN COMTRADE

countries for import by China, under India’s exports, in the year 2006-
this product category. In addition, 07, under this product category,
these countries have sourced their amounted to US $ 133 million. Major
import requirements from Japan, markets for India include USA, Saudi
Germany, USA, Thailand and Arabia, Switzerland and UAE.
Singapore. India’s imports of Developing country markets, such as
electric motors and generators in Saudi Arabia, UAE and Nigeria have
the year 2006-07 amounted to US principally sourced their
$ 244 million. requirements from China, Germany
and USA.
Table 70:
MARKET ANALYSIS FOR MOTORS AND GENERATORS UNDER
HS CODE 8501
Existing Major Major Major Major
Developing competitors Developing Competitors
Country Country
Markets Importers
for India in the World

Saudi Arabia USA, Germany and China Hong Kong, Japan

China and Germany
UAE Germany, China and Hong Kong China, Thailand and
USA Singapore
Nigeria China, Germany and Mexico USA, Germany and
South Africa China

SOURCE: UN COMTRADE

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Electric generating sets and
rotary converters (HS Code
8502)
Major importers of electric
generating sets and rotary
converters (HS Code 8502) in the
world are USA, China and UK. In
addition to China, developing
countries such as UAE, Nigeria,
Hong Kong and Indonesia are other
major importers under this product
category. India’s import of electric
generating sets in the year 2006-
07 amounted to US $ 114 million.
USA, UK and France are major
suppliers to China, Nigeria and
France, respectively. China and
Hong Kong have also served as
suppliers to each other.
India’s export of electric
generating sets in the year 2006-07
amounted to US $ 361 million. Major
markets for India include USA,
Table 71:
MARKET ANALYSIS FOR ELECTRIC GENERATING SETS UNDER
HS CODE 8502
Existing Major Major
Developing competitors
Country
Markets
for India
Portugal Spain, UK and
Germany
Mali France, UK, and
Senegal
UAE China, UK, and USA
SOURCE: UN COMTRADE
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Portugal, Mali and UAE. Portugal
has sourced its import requirements
under this product category from EU
countries such as UK, Spain and
Germany, whereas, Mali has
sourced its requirements from
France, UK and Senegal. UAE has
sourced from China, UK and USA.
Inferences
Globally, the capital goods industry
is worth around US $ 4.5 trillion.
Japan Germany and USA are
traditionally large suppliers of
different sub-segments of capital
goods. Of late, Asian countries
such as China, Taiwan and South
Korea have become major players
in production and export of capital
goods. Consumption of capital
goods has also increased
substantially in developing Asian
countries due to thrust given to the
value-added manufacturing.
Major Major
Developing Competitors
Country
Importers
in the World
China Hong Kong, USA,
and Japan
Nigeria UK, China and
France
Hong Kong UK, Singapore and
China

Under the machine tools
category, though there has been
growth in exports, in the last three
years, the import of machine tools
have outgrown in several sub-
segments, bringing down the export-
import ratio (Annexure – 3). This
indicates that there is significant
room for market expansion in the
domestic market. Market analyses
reveal that major developing country
importers of machine tools in the
world include Mexico, Thailand,
Turkey, Poland and China. India’s
major developing country markets
for machine tools have been UAE,
Nigeria and Thailand. In addition,
India exports machine tools to host
of developing countries of Africa, and
West and South Asia, such as
Kenya, Sudan, Bangladesh, Iran and
Sri Lanka. Though some of the sub-
segments of machine tools are
exported to leading developing
country markets, in many cases the
share of India in these markets are
insignificant. Thus, careful targeting
of export markets need to be
undertaken by the players in the
Indian machine tool sector for
penetration in new markets and
expansion of market share in existing
markets.
The technology upgradation
fund scheme of Government of India
has contributed to the capacity
expansion in the domestic textile
sector significantly. Most of such
capacity expansion has occurred
through imports. As a result, the
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export-import ratio of textile
machinery sector has also come
down significantly in the last three
years (Annexure -4), especially in
sub-segment non-woven machinery.
Major developing country importers
of textile machinery in the world
include China, Hong Kong, Turkey
and Pakistan. On the other hand,
India’s major developing country
markets for textile machinery include
Bangladesh, Indonesia and UAE.
There is ample scope for exporting
to other developing countries of
South Asia, especially to Pakistan
and Sri Lanka. In addition, countries
such as Turkey and Egypt could also
be targeted for expanding exports
and enhancing market share.
Construction and mining
equipment is another area in which
the export-import share has come
down in the last three years
(Annexure - ), except under the
product group pulley tackle and
hoists (HS Code 8425). This
indicates that there is significant
room for capacity expansion in
construction and mining equipment
sector also. Amongst developing
countries, China, Mexico and
Indonesia are the leading importers
in the world. While developed
countries cater most of their import
requirements, India could explore the
opportunities in these countries.
India’s export markets include UAE,
Kuwait and Qatar in west Asia and
African countries such as Kenya,
Tanzania, Togo, Tunisia and
105

Mauritius. The share of India in the
import of these countries is not
always significant. Thus, these
countries could be targeted for
market expansion by the
construction and mining equipment
companies in India.
Analysis of process plant
machinery sub-segment (Annexure
-6) revealed that in some product
groups, export is greater than
imports, and export-import ratio in
most such product groups has also
improved in the last three years.
However, in many product groups,
there has been reduction in export-
import ratio. Major developing
country importers include China,
Mexico, Taiwan, Indonesia and
Turkey. Though India’s exports of
process plant equipments are
oriented towards these countries, the
volume is not consistent with the
potential. India’s major export
markets for process plants include
UAE, Saudi Arabia, Nigeria, Kenya
and Vietnam. Except for few
products in few countries, India’s
share is insignificant even in these
markets.
Mixed results are also observed
in the sub segment of electrical
machinery and equipments
(Annexure -7 ). While in most of the
product groups the export-import
ratio, has increased, reduction has
been witnessed in product groups
such as electric motors and
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generators. Major developing
country importers in the world are
China, Hong Kong, Taiwan and
Mexico. Another interesting trend in
world trade is that there has been
significant trade amongst these
countries, especially China, Hong
Kong and Taiwan, trading with each
other. India’s main developing
country export destinations of
electrical machinery include UAE
and Saudi Arabia. Other developing
countries to which India has been
exporting the electrical equipments
include Qatar, Mali, Nigeria, Syria
and Philippines. However, India’s
share in total import of many of these
countries is not significant, indicating
the opportunities for market
expansion in these countries.
In sum, the analyses show that
there need to be capacity expansion
in the Indian capital goods industry
to cater to the rising demand, both
from domestic and export markets.
Technological solutions through
research and development are to be
offered to capture new markets;
effective market enhancement and
customer retention strategies are
required to sustain and expand in the
existing developing country markets.
A comprehensive analysis of
challenges faced by the Indian
capital goods industry is carried out
in the next chapter, along with a set
of focussed strategies to overcome
such challenges.

6. CHALLENGES AND STRATEGIES
Indian capital goods industry has
significant opportunities both in
domestic and export markets.
However, there are also challenges
engulfing this sector; appropriate
strategies need to be adopted by this
sector to emerge as a leading player
in both domestic and export markets.
Some of the challenges and
strategies identified are briefly
discussed below:
CHALLENGES
Technological Competency
The technologies used for
production as also in assembly of
Indian capital goods are not always
updated in tune with the global
technological trends. While there
are some players who have
technological competencies,
especially in design capability,
application innovation and process
innovation, the technological
capabilities of large number of
players, especially in the SME
sector, are limited. In addition, the
technological competencies of
players in the SME sector, who
provide components or
intermediates to original equipment
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manufacturers, are also limited.
Transfer of technology from other
developed countries has also not
been significant despite
liberalization of policies for
technology transfer and foreign
direct investments.
Import of Second Hand
Capital Goods
Under the Export Promotion Capital
Goods (EPCG) Scheme, import of
second hand capital goods is
permitted in India for pre-
production, production and post-
production activities. The capital
goods that may be imported under
this scheme include spares
(including refurbished/
reconditioned spares), tools, jigs,
fixtures, dies and moulds. Import of
capital goods under this scheme
would attract only 5% customs duty
subject to an export obligation,
equivalent to 8 times of duty saved
on the capital goods imported. It
may be mentioned that machine
tools, refinery equipments,
construction and mining machinery,
plastic processing machinery and
printing machinery are some of the
second hand capital goods
107

imported into India. During the
period April – December 2007, over
14300 EPCG applications have
been sanctioned with licenses /
authorizations, with a CIF duty
credit of nearly Rs. 12,000 crores.
While the main objective of this
scheme is to help modernization of
the industry by offering duty
concessions, the imported capital
goods pose stiff competition to the
indigenous capital goods
manufacturers.
Cost Competitiveness
The Indian capital goods industry
largely uses crucial inputs such as
iron and steel that are of domestic
origin. Over the years, there has
been significant increase in cost of
inputs, but the players in this
industry are unable to pass on the
price increase to the end
consumers, due to competition
from imports.
The capital goods industry also
has high incidence of taxation; a
number of indirect duties (such as
excise duty, octroi, entry tax, sales
Table 72:
TRENDS IN LICENSES ISSUED UNDER EPCG SCHEME
Year Number of licenses /
authorisations
2005-06 16387
2006-07 21226
2007-08 (Apr-Dec) 14361
SOURCE: Directorate General of Foreign Trade
108
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tax and service tax) are levied adding
up to the end user cost. This makes
the indigenous supplies costlier vis-
à-vis imported capital goods. Some
estimates have put the cost
disadvantage, due to such levies, to
an extent of over 20%.
Delivery Schedules
It may be mentioned that most of
the capital goods are not supplied
off-the-shelves and are custom-
made to suit the requirements of
end users. Thus, the delivery
schedule to cater to the order is
longer than many other engineering
products. However, due to various
reasons, including infrastructure
constraints, the delivers schedules
of Indian capital goods suppliers
are longer than their foreign
counterparts. Industry sources
estimate that the delivery time of
Indian capital goods manufacturers
are two times longer than their
global counterparts affecting the
competitiveness in delivery
schedules. In such circumstances,
imported capital goods are
CIF Duty Credit
(Rs. Crore)
6397
15233
11936

preferred over Indian capital goods,
though they are technologically and
functionally comparable with
international standards.
STRATEGIES
Transformation in Objective
and Approach
Sale of capital goods is not an one
time business but require technical
support in transportation, erection,
staff training (for operation and
minor repairs), continuous service
maintenance and periodical
upgradation in technology. All over
the world, the capital goods
manufacturers are turning
themselves as engineering services
companies, offering turnkey
solutions to retain the customers.
Players in Indian capital goods
industry may also increasingly
reorient their approach to transform
into service based organizations.
Such service orientation would help
the industry in sharpening the
competitive advantage.
Strengthening Research and
Development
Consistent with global trends,
Indian capital goods industry also
needs to grant high priority to
innovation, and research and
development. The R&D intensity of
firms in Indian capital goods
industry is less than 1%, far below
than the R&D intensity of other
sectors such as pharmaceuticals
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and automobiles. Precision
measuring, materials engineering,
and process innovation are some
of the areas for strengthening R&D
in Indian capital goods industry. It
is also important to increase the
linkages between the public
research systems and industry to
facilitate technology transfer and
enhance the responsiveness of the
capital goods industry.
Common R&D facilities under
the cluster approach or under the
public-private partnership approach
would enhance the technological
strengths of the Indian capital goods
industry. In this context, it may be
mentioned that the textile machinery
industry, with the support of
academia and Government, has set
up a R&D center at Indian Institute
of Technology (IIT), Mumbai. It is
reported that textile engineering
related projects undertaken by post-
graduate students in IIT, Mumbai, in
this R&D center, would be useful in
product development and innovation
in process engineering in the textile
engineering industry. Such R&D
centers may be encouraged to
contribute to the technology
development in other capital goods
sub-sectors also.
Strengthening Technological
Competencies
In order to enhance productivity,
product quality and operating
efficiency, the players in the sector
need to constantly upgrade their
109

technological competencies. The
Department of Heavy Industry,
Government of India, has proposed
to undertake a comprehensive
scheme for technology upgradation
and R&D facilities for modernization
of capital goods industry. The
proposed scheme may endeavour
to help the players in the Indian
capital goods industry in tracking
global trends in product and
process technologies, with specific
objective of cost control, besides
enhancing productivity, energy
efficiency, eco-friendliness, product
quality, operating flexibility and
efficiency. The scheme may also
help enhance the usage of
information technology that
provides convenience to the
customers, and help enhance
customer base and new avenues
for profitability. Such R&D Centres
may also be conceived as training
platforms for skill upgradation of the
shop-floor technicians in the capital
goods industry.
Fund for Technology
Upgradation in Capital Goods
Industry
It may be fair to surmise that there
are capacity constraints at the
following two levels in the capital
goods industry:
a) Capacity constraints to cater to
the demand in volume,
considering the growth
momentum in the industrial
110
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sector as also the overall
economic growth;
b) Capacity constraints to cater to
the technological demands that
may improve efficiency in
operations and cost control.
While fiscal incentives would
help attract investments in the capital
goods industry in general, adding
production capacity, a fund for
supporting technology upgradation in
the capital goods industry may be
considered in order to achieve
quality, standardization and
benchmarking with international
products.
Enhancing Market Position
Analysis of trends in imports by
major countries reveals that there
is vast scope for market expansion
in many developing countries to
which India is currently exporting.
Various market entry strategies
may be adopted including attaining
market leadership, through
acquisition and consolidation, and
achieving economies of scale in the
price sensitive markets. Mergers
and acquisitions routes may also be
adopted by players in the Indian
capital goods industry, to build and
nurture brands in export markets.
Value-based supply chain may be
created through building
customized products and offer of
engineering services to create
exclusiveness in competitive
markets. Sales approach should be

transformed to provide solutions
that add value to the clients through
enhancement of process efficiency
and product quality. Effective of
Lines of Credit mechanisam also
help the exporters in entering
unexplored markets (Box - 1).
Introducing New Product
Lines
Over the years, players in the
Indian capital goods industry has
been diversifying the product lines
offered with the objective of
mitigating risks associated with
business and cyclical trends.
However, more focus should be
given in building new generation
machines that may be in demand
in future. Such new generation
machines should have greater
flexibility to produce a variety of
products. Such new generation
machineries also create
opportunities for offering
engineering services that are less
sensitive to business and cyclical
fluctuations.
Tapping Outsourcing
Opportunities
Globally, OEMs are increasingly
outsourcing their design and
engineering services to developing
countries like India to add value at
lower cost and to focus on their
core competencies. According to a
NASSCOM study, spending on
engineering services across the
world is estimated to be US $ 750
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billion in 2004, which is expected
to cross US $ 1 trillion in 2020.
While only 15-20 billion (2% of total
demand) is being at present off-
shored, the off-shoring market is
expected to grow to US $ 150
billion to US $ 225 billion (around
20% of total demand) by 2020.
Capital goods industry, one of the
potential players in India in the
engineering services segment,
holds significant potential to tap the
growing business opportunities in
the outsourcing arena.
Increasing Interaction with
End-Users
Capital goods manufacturers also
need to closely interact with end-
users, (especially with sectors such
as automobile, defense, aeronatics,
space, metals, construction,
textiles, chemicals and
pharmaceuticals), to understand the
latest trends in manufacturing; the
expectations of end users in
performance of machinery; areas
for improvement in process
efficiency, energy efficiency, product
quality, and cost control strategies.
The trends in shifting of
manufacturing base from
developed to developing countries
could also be unearthed through
interactions with end-user
industries. Such interactions would
help the players in capital goods
industry to source appropriate
technologies, in addition to making
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Box 1:
LINES OF CREDIT: A MARKET ENTRY MECHANISM FOR CAPITAL
GOODS INDUSTRY
Exim Bank has been placing special emphasis on extension of Lines of Credit
(LOCs), as an effective market entry mechanism, with particular focus on small
and medium enterprises. Exim Bank extends LOCs to overseas financial
institutions, regional development banks, sovereign governments and other entities
overseas to enable buyers in those countries to import equipments, goods and
services for their developmental and infrastructure projects, on deferred credit
terms. The Bank, as of end March 2008, has 89 operating LOCs in Africa, Asia,
CIS, Europe and Latin America with credit commitments aggregating US $ 2.96
billion, including the LOCs extended at the behest of Government of India.
Some of the LOCs are with specific objective of capacity development in
manufacturing and infrastructure sectors of other developing countries, and thus
provide opportunities for Indian capital goods industry. These include: agro-
processing and food processing projects (Cote d’Ivoire, Ethiopia); power generation
/ transmission electrification projects (Mali, Ghana, Sudan, Ethiopia, Mozambique,
Myanmar, Cambodia, Vietnam, Nepal); setting up of / rehabilitation of
manufacturing plants (cement in DR Congo and Djibouti; cotton yarn, steel,
agricultural implements in Chad; tractor assembly in Gambia; Sugar in Fiji); and
export of select capital goods (machineries to Equatorial Guinea; agricultural
implements to Senegal, Burkina Faso, Guinea Bissau; water drilling equipments
to Mozambique; and water pumps to Jamaica). It may be mentioned that, in
addition, the LOC extended, at the behest of Government of India, to Iran, is
meant for export of capital goods.
Indian capital goods industry has been increasingly using the LOC mechanism
to export the machineries and equipments to other developing countries. In the
year 2006-07, the year for market analysis in this study, about US $ 250 million
worth capital goods were exported using these LOCs. These include electrical
equipments to Ghana, Lesotho, Vietnam, Ethiopia, Jamaica and Mozambique;
process plants and equipments to D.R.Congo, Tobago and Trinidad, Ghana,
Kenya, Myanmar, Vietnam and Senegal; and textile machinery to Vietnam. Thus
it may be construed that such market entry mechanisms help establish products
abroad and generate export opportunities subsequently.
Indian capital goods exporters could make effective use of such LOCs in
expanding their market share in other developing countries.

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Box 2:
ASSESSMENT OF CONFORMITY STANDARDS FOR MACHINERIES IN
USA AND EUROPE
In USA, all machines are assessed with two separate technical standards,
ANSI/UL508A for Industrial Control Panels, and NFPA 79 for Electrical Standard
for Industrial Machinery. UL508A, being an OSHA-recognized standard, is the
primary standard, and applies to all industrial control enclosures on the machine.
The overall machine is also assessed based on NFPA 79, which addresses wiring
outside the machine enclosures, as well as machinery-related requirements such
as interlocking devices, guarding, and such other safety issues. In addition, special
requirements exist for special types of machines. These requirements are applied
over and above the basic requirement for ANSI/UL508A and NFPA 79 for
compliance. Examples of these requirements are the ANSI B11 series of standards
for metal working machines, the ANSI B151 series of standards for injection
molding machines, the ASME B20.1 and B30.13 standards for factory automation
machinery, and the ANSI RIA R15.06 standard for industrial robots.
The CE marking is a mandatory in European Union marking for certain
product groups to indicate conformity with the essential health and safety
requirements set out in host of European Union Directives. The Directives
governing the safety standards of capital goods include Machinery Directive 98/
37/EC, Lifts Directive (95/16/EC), Directive on Personal Protective Equipments
89/686/EEC, Directive on Noise Emissions 2000/14/EC. In addition, the EU
Directive concerning Liability for Defective Products make EU importers liable for
the products they import, including the machinery they provide to their employees
for work. To permit the use of a CE mark on a product, proof that the item meets
the relevant requirements must be documented. This is mostly achieved using an
external test house which evaluates the product and its documentation.

SOURCE: OSHA, USA; and the European Commission

plans towards capacity multi-tiered regulatory environment

enhancement to cater to the
growing demand.
Thrust on Safety Standards
and Product Liability
Exporting to USA and EU requires
the machinery manufacturers to
carefully consider the requirements
for both regulatory and liability
protection. USA has a complex,
for machinery and the
manufacturers need to define the
method of indicating compliance
with regulatory issues in most
acceptable manner. The
Occupational Safety and Health
Administration (OSHA), the agency
in USA, which is responsible for
regulating machinery used in the
workplace, has defined the product

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requirements and safety standards,
as also the periodicity of evaluating
safety audits. In European Union,
there are host of Directives, such
as Machinery Directive 98/37/EC,
Lifts Directive (95/16/EC), Directive
on Personal Protective Equipments
89/686/EEC, Directive on Noise
Emissions 2000/14/EC, governing
the safety standards of capital
goods. In addition the EU Directive
concerning Liability for Defective
Products make EU importers liable
for the products they import,
including the machinery they
provide to their employees for work.
Exporters of capital goods,
particularly to USA and EU should
carefully follow the trends in
product standards and conform
their products to safety such
requirements.
Accelerating Investments in
Infrastructure
Growth in investments in
infrastructure sectors, especially for
construction of road / rail network,
bridges and dams, ports (both air
and sea), and handling facilities in
such ports and power stations
boost the demand for capital
equipments. This would be
significant in the case of electrical
machinery (investments in power
sector) and construction / earth
moving equipments (investments in
road / rail infrastructure), which
would have direct impact. In
addition, investments in
114
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infrastructure would boost the
manufacturing sector and there by
provide growth opportunities for
capital goods such as machine
tools, textile machinery and process
plant machinery.
The consultation paper on
‘Investment in Infrastructure During
the Eleventh Five Year Plan’, has
estimated that about US $ 500 billion
investments are required in Indian
infrastructure sector to sustain the
GDP growth of 9%, during the
Eleventh Five Year Plan. This works
out to approximately 2.3 times higher
as compared to the actual
investments in the infrastructure
sector that have taken place in the
Tenth Five Year Plan. If this volume
of investment demand in the
infrastructure sector is met
systematically, the capital goods
industry would get further
momentum.
Accelerating Capital
Investments in Indian
Manufacturing Sector
Government may also consider
offering incentives to the
manufacturing sector for
upgradation of technology and
equipments. The incentives that
may be considered are tax
concessions, accelerated
depreciation allowances and excise
duty relief. Such strategy may be
particularly relevant for SME sector
that would be encouraged to

upgrade their technological
competence, manufacturing
process and product quality.
IN SUM
India should leverage its inherent
strengths, such as availability of
pool of skilled workforce, low cost
operations and existence of large
domestic demand, in strengthening
capital goods industry. Leveraging
the abundant availability of software
skills in engineering design and
drawing would strengthen
technological competitiveness.
Continuous training and skill
upgradation would help the human
resources in the industry to capture
the trends in new processes and
technologies.
Scale economies would position
India further as a cost-effective
manufacturing base for capital
goods. Strategies such as
transformation of the shop-floors fully
flexible to produce different types of
machineries and redesigning the
machining process to accommodate
usage of common components /
parts in various types of machineries,
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would contribute to the scale
economies significantly.
Technology sourcing, from
countries such as Germany,
Switzerland, Italy and Spain, may be
encouraged, especially in the context
of shift in manufacturing base from
developed to developing countries.
The strengths of machining
technologies in other developing
countries such as China and Taiwan
should be effectively learnt and
adapted by Indian players.
Changing trends in product
quality and safety standards should
be monitored and complied to
sustain market presence in
developed countries. Developing
countries of Asia, Africa, Latin
America and central and east Europe
should be targeted for market
expansion as these countries are
having almost similar raw material
and manufacturing base, like India.
Effective supply chain management
and thereby optimizing the product
delivery schedules should be given
top priority to retain the existing
customers as also to fetch new
customers.
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ANNEXURE - 1

List of Capital Goods Items Covered in Index of Industrial

Production

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ANNEXURE-2

Shipment of Textile Machinery: Various Segments

Country 2005 2006
Shipments % Share Shipments % Share % Change
(‘000) (‘000) (2006/05)
Short staple spindles
China 5910.5 59.6 6680.7 56.9 13.0
India 1429.8 14.4 2779.2 23.7 94.4
Pakistan 1037.8 10.5 668.6 5.7 -35.6
Bangladesh 540.7 5.4 433.7 3.7 -19.8
Turkey 307.6 3.1 187.7 1.6 -39.0
World 9925.2 11740.5 18.3
Long staple spindles
China 82.9 45.3 101.1 52.4 22.0
Iran 10.8 5.9 28.5 14.8 163.9
Turkey 42.3 23.1 13.9 7.2 -67.1
India 0.0 0.0 11.4 5.9 N/a
Italy 14.0 7.6 8.8 4.6 -36.8
World 182.8 193.1 5.6
Open end rotors
China 246.1 65.8 195.0 55.4 -20.8
Turkey 18.4 4.9 33.9 9.6 84.2
India 20.1 5.4 32.8 9.3 63.5
Brazil 22.1 5.9 9.9 2.8 -55.1
Russia 4.3 1.2 9.9 2.8 128.1
World 374.2 352.0 -5.9
Double heater, false twist spindle draw texturing machinery
China 259956 84.3 152768 69.3 -41.2
India 13176 4.4 31088 14.1 126.7
Hong Kong 7656 2.5 7680 3.5 0.3
Egypt 1488 0.5 4416 2.0 196.8
Vietnam 5920 1.9 3120 1.4 -47.3
World 308330 220288 -28.6
Single heater, false twist spindle draw texturing machinery
China 3384 49.2 6912 67.2 104.3
Turkey 1008 14.7 852 8.3 -15.5
Italy 192 2.8 656 6.4 241.7
Peru 0 0.0 576 5.6 N/a
South Korea 0 0.0 432 4.2 N/a
World 6872 10288 49.7

SOURCE: Textile Outlook International, July –August 2007, No.130

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118
ANNEXURE-3

India’s Export, Import, and Export-Import Ratio of Select Machine Tools

HS Description 2004-05 2005-06 2006-07
Code Exports Imports Exp-Imp Exports Imports Exp-Imp Exports Imports Exp-Imp
(US $ Mn) (US $ Mn) Ratio (%) (US $ Mn) (US $ Mn) Ratio (%) (US $ Mn) (US $ Mn) Ratio (%)

8457 Machining centers and multi station

transfer machines for working metal 2.24 94.10 2.38 2.00 190.57 1.05 3.30 207.43 1.59
8458 Lathes for removing metal 11.71 42.22 27.73 14.12 79.03 17.87 20.42 107.72 18.95
8459 Machine tools for drilling, boring,
milling, threading or tapping by
removing metals other than lathes 6.25 62.84 9.95 8.70 107.45 8.10 14.90 146.94 10.14
8460 Machine tools for deburring,
sharpening, grinding, honing, lapping,
polishing metals 5.10 52.40 9.73 4.63 116.69 3.97 5.46 135.17 4.04
8461 Machine tools for planing, shaping,
slotting, broaching, gear-cutting,
grinding or finishing working by
removing metals 4.36 47.87 9.11 7.23 77.56 9.32 6.57 137.09 4.79
8462 Machine tools for working metal by
forging, hammering and die-stamping 19.02 100.26 18.97 25.14 175.25 14.34 25.31 275.66 9.15
8463 Other machine tools for working metal,
sintered metal carbides without
removing materials 5.33 17.01 31.33 6.43 31.49 20.42 6.22 38.78 16.04
8464 Machine tools for working stones,
ceramics, concrete, asbestos-cement
or other mineral materials 2.16 34.79 6.21 1.97 40.34 4.88 3.55 49.61 7.16
8465 Machine tools for working wood, cork,
bone, hard rubber, hard plastics etc.,. 9.87 35.57 27.75 6.84 52.03 13.14 6.59 72.38 9.10
8467 Tools for working in the hand, pneumatic
or with self-contained non-electric motor 17.76 29.04 61.15 22.90 41.92 54.62 26.93 62.82 42.86

SOURCE: Directorate General of Commercial Intelligence and Statistics, Government of India

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ANNEXURE-4

India’s Export, Import, and Export-Import Ratio of Select Textile Machinery

HS Code Description 2004-05 2005-06 2006-07
Exports Imports Exp-Imp Exports Imports Exp-Imp Exports Imports Exp-Imp
(US $ Mn) (US $ Mn) Ratio (%) (US $ Mn) (US $ Mn) Ratio (%) (US $ Mn) (US $ Mn) Ratio (%)

8444 Machines for extruding, drawing,

texturing or cutting man-made textile
materials 2.00 26.19 7.64 1.49 21.61 6.89 2.93 15.90 18.42
8445 Machines for preparing textile fibres,
spinning, twisting and other yarn
making machinery 21.61 205.32 10.55 15.43 480.18 3.21 17.92 841.20 2.13
8446 Weaving machines (looms) 3.44 179.48 1.92 2.69 344.97 0.78 5.44 278.18 1.96
8447 Knitting / stitch-bonding machines,
and other machines for making laces,
embroidery and trimmings 3.13 137.65 2.27 1.75 314.21 0.56 3.20 388.61 0.82
8448 Auxiliary machinery such as
dobbies, jacquards etc 51.09 130.48 39.15 54.34 190.70 28.49 61.30 241.47 25.38
8449 Machinery for manufacture of finishing
felts or non-wovens 2.59 2.88 89.93 0.82 5.55 14.77 0.51 36.02 1.41
8450 Washing machines 14.91 15.57 95.76 19.54 24.37 80.18 7.34 34.10 21.52
8451 Machinery for washing, drying,
wringing, ironing, pressing, bleaching,
dyeing, dressing and finishing 7.06 92.68 7.62 11.40 221.73 5.14 9.28 247.96 3.74

SOURCE: Directorate General of Commercial Intelligence and Statistics, Government of India

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120
ANNEXURE-5

India’s Export, Import, and Export-Import Ratio of Select Construction and Mining Machinery
HS Code Description 2004-05 2005-06 2006-07
Exports Imports Exp-Imp Exports Imports Exp-Imp Exports Imports Exp-Imp
(US $ Mn) (US $ Mn) Ratio (%) (US $ Mn) (US $ Mn) Ratio (%) (US $ Mn) (US $ Mn) Ratio (%)

8425 Pulley tackle and hoists other than

skip hoists, winches and jacks 3.65 12.79 28.53 6.13 19.09 32.11 6.99 24.22 28.86
8426 Derricks, cranes, mobile lifting frames,
straddle carriers 32.12 122.93 26.13 21.63 235.00 9.20 18.43 265.90 6.93
8427 Fork-lift trucks, other trucks fitted with
lifting or handling equipments 2.70 7.57 35.67 4.70 21.50 21.86 6.82 34.05 20.02
8428 Other lifting, handling, loading or
unloading machinery
(e.g. lifts, conveyors, escalators) 18.05 60.06 30.05 17.59 123.20 14.28 27.44 342.97 8.00
8429 Self propelled bulldozers, single-dozers,
graders, levelers, scrapers, mechanical
shovels, excavators, and road rollers 18.14 108.54 16.71 17.93 186.34 9.62 26.59 283.05 9.39
8430 Other moving, grading, leveling,
scrapping, excavating,
compacting equipments 79.94 253.91 31.48 34.73 166.36 20.87 44.03 285.40 15.42

SOURCE: Directorate General of Commercial Intelligence and Statistics, Government of India

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ANNEXURE-6
India’s Export, Import, and Export-Import Ratio of Select Process Plant Machinery
HS Description 2004-05 2005-06 2006-07
Code Exports Imports Exp-Imp Exports Imports Exp-Imp Exports Imports Exp-Imp
(US $ Mn) (US $ Mn) Ratio (%) (US $ Mn) (US $ Mn) Ratio (%) (US $ Mn) (US $ Mn) Ratio (%)
8402 Steam or other vapour generating boilers 41.00 16.57 247.43 42.23 29.82 141.62 74.89 19.56 382.87
8403 Central heating boilers other than those
heading 8402 10.45 0.47 2223.40 12.51 6.25 200.16 12.31 2.09 588.99
8404 Auxiliary plant for use with boilers of heating 7.63 7.64 99.87 14.01 19.54 71.70 24.12 8.49 284.10
8410 Hydraulic turbines, water wheels 5.50 4.43 124.15 4.48 14.50 30.90 9.89 21.11 46.85
8416 Furnace burners for liquid fuel,
mechanical stokers, including their
mechanical graters, ash discharges etc. 3.52 20.22 17.40 5.33 33.96 15.69 10.32 30.49 33.84
8417 Industrial or laboratory furnaces and
ovens, including incinerators 17.87 44.44 40.21 26.14 103.51 25.25 28.77 126.99 22.66
8418 Refrigerators, freezers and other
refrigerating or freezing equipment
(other than air conditioners) 53.33 106.16 50.23 74.99 119.21 62.91 92.61 175.92 52.64
8419 Machinery, plant or lab equipment for
treatment of materials through a process
involving temperature 103.37 170.99 60.45 186.78 252.41 74.00 257.54 293.25 87.82
8420 Calendaring or other rolling machines
other than for metals or glass. 8.19 6.48 126.39 7.24 32.72 22.13 10.46 14.04 74.50
8421 Centrifuges, including centrifugal dryers,
filtering or purifying machinery and
apparatus 71.20 171.26 41.57 90.64 234.95 38.57 116.25 342.99 33.89
8435 Presses, crushers and similar machinery
used in manufacture of wine, cider or
fruit juices 4.10 4.00 102.50 4.92 2.94 167.35 5.81 9.90 58.68
8438 Machinery not specified elsewhere but
used in preparation or manufacture of
food or drink 24.30 25.85 94.00 37.65 28.25 133.27 36.95 60.72 60.85
8454 Convertors, ladles, ingot moulds and
casting machines used in metallurgy
or metal foundries 36.45 46.00 79.24 38.36 127.67 30.04 37.45 163.36 22.92
8455 Metal rolling mills and rolls thereof 57.82 57.06 101.33 82.47 143.48 57.47 104.70 243.72 42.96

SOURCE: Directorate General of Commercial Intelligence and Statistics, Government of India

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122
ANNEXURE-7

India’s Export, Import, and Export-Import Ratio of Select Electrical Machinery

HS Code Description 2004-05 2005-06 2006-07
Exports Imports Exp-Imp Exports Imports Exp-Imp Exports Imports Exp-Imp
(US $ Mn) (US $ Mn) Ratio (%) (US $ Mn) (US $ Mn) Ratio (%) (US $ Mn) (US $ Mn) Ratio (%)

8501 Electric motors and generators

(excluding generating sets) 110.26 155.19 71.04 136.87 189.02 72.41 133.30 244.43 54.53
8502 Electric generating sets and rotary
converters 31.16 92.84 33.56 65.41 160.02 40.87 361.43 114.10 316.77
8504 Electrical transformers, static
converters and inductors 207.68 298.41 69.59 370.39 405.74 91.29 645.46 557.12 115.86
8532 Electrical capacitors, fixed,
adjustable or variable 13.69 93.45 14.65 25.02 118.56 21.10 39.48 135.31 29.18
8535 Electrical apparatus for switching or
protecting electrical circuits
(exceeding 1000v) 56.40 29.08 193.94 66.93 47.72 140.05 89.57 50.72 176.60
8536 Electrical apparatus for switching or
protecting electrical circuits
(below 1000v) 112.70 256.32 43.97 183.48 334.91 54.78 233.82 462.06 50.63

SOURCE: Directorate General of Commercial Intelligence and Statistics, Government of India

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EXPORT-IMPORT BANK OF INDIA

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