| India:
Engineering
industry has witnessed impressive development over the
years in the country. The performance of engineering
depends on the trends in different industrial sectors,
as well the agriculture and infrastructure industry,
thus indicating the level of economic growth in the
country.
The
country, today, manufactures a number of products including
machinery for large sectors like petrochemicals, nuclear
power plants, electrical machine and equipment, automotive
vehicles & components, besides all the consumer
products required for mass use. The sector has recorded
a significant growth accompanied by technology up gradation.
The
engineering industry has been a major beneficiary of
the Indian economic reforms
- De-licensing
- 33% of the investments being approved in the engineering
industry. Almost all the items have been placed under
de-licensing now.
-
FDI – 36% of the total approvals went to the
engineering industry. This is now allowed through
an automatic route, subject to lump sum payments not
exceeding US 2million, royalty payment being limited
to 5% for domestic and 8% for exports.
-
Technology tie-ups – 51% of the foreign technology
collaborations were approved in the engineering industry
Government’s initiatives to spur growth in the
engineering industry led share of 33% in the country’s
total production (US 79.4 billion) in the value of the
production. Exports grew by 8% in the ‘90’s
to 19% in 2004 in volumes. In value terms, the exports
grew from 14% to 19%.
The
important groups within engineering goods include machinery
& instruments, primary & semi finished iron
& steel, steel bars & rods, non ferrous metals,
electronic goods and project exports.
The
exports are mainly to the US, UK, UAE, Germany and other
countries. Our project exports are able to make inroads
into countries like Singapore and Japan.
Gujarat
Initially,
the development of the textile industry led to the development/
promotion of units manufacturing textile parts, castings
& spares, and came to be known as textile stores.
There development, therefore, was restricted within
the small and medium scale industry, known as SMEs.
With growing investments in other sectors like pharmaceuticals,
chemicals and dairy, the engineering sector continued
to witness growth in Gujarat.
Since
August 1991 upto April 2005, Engineering Industry including
Metallurgical Products, Industrial Machinery, Transport
Equipments and Electrical Equipments and Electronics
accounts for an investment of Rs. 772 billion which
is 20.70% of total investment of the state. Similarly
869 projects of the Engineering Industry involving an
investment of Rs. 184 Billion have been commissioned/concluded
, accounting for about 17.15% share in investment of
the total projects commissioned. Also 371 projects envisaging
an investment of Rs. 212 Billion are under implementation
in Engineering and Allied Industry. The Small Scale
and Factory Sector industry in Engineering and allied
field has also shown an impressive contribution with
more than 33000 functioning SSI Units which is about
20% of the total functioning small scale units and 5320
Factory Sector Units in this sector of Industry.
The
engineering product’s where Gujarat’s share
is greater than 10% in India:
- Sponge
Iron
- Electric
Motors
- Compressors
- Steel
Pipes
- Ball
and roller bearings
- Brass
parts
- Construction
machinery
- Castings
Copper rods
- Textile
machinery
- Transmission
line towers
- TV
picture tubes
- Submersible
pumps
- Environment
control equipment
- Gears
Share
of Gujarat’s engineering goods in the National
production:
- Metallurgical
industry 10%
- Fabrication
of metal products 10.4%
- Machinery
and equipment 10.4%
- Electricals
7.3%
- Automotive
including transport equipment 3.7%
The industrial clusters in Gujarat are very highly developed.
Gujarat’s engineering industry has many achievements
to its credit.
- Largest
producer of sponge iron in the country with 35% share
-
Largest exporter of clocks in the world
-
All requirements of brass parts in the country are
met by Gujarat
-
Largest manufacturer of glass shells for TV tubes’
production
-
Important manufacturer of power generation plants,
switch gears and transformers
-
Important production center for Textile & Chemical
machinery, Pollution control equipment, printing machinery,
air & gas compressors and bearings, oil engines
& electric motors, submersible valves.
-
Largest ship breaking yard, largest producer of SAW
and ERW pipes.
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