IMPORT-EXPORT SCENARIO IN INDIA Share of Engineering goods in Exports is around 36% Share of manufacturing is slated to move from 15% to 25% by 2022 SIZE US$1.0 Trillion by 2025 (Mc-Kinsay) Manufactured goods export is estimated to be USD 184 billion Capital goods business size of Rs 1.85 Trillion Import Intensity across Capital Goods Sectors (import content in standard & hi-tech machinery)

Sl. No.SectorsImport of standard machinery (in %)Import of hi-tech machinery (in %)

1Earth moving3578

2Textile M/c1227

3M/c Tools3040

4Heavy Electricals2637

5Plastic M/c1222

6Process Plants1030

7Metallurgical M/c1535

8Dies & Moulds1515

Source: Recommendations for 12th Five Year Plan for Capital Goods & Engineering Sector

Share in Global Exports (2010) for India

Sl. No.SectorsShare in Global Export (in %)

1Earth moving & mining Equipment0.6

2Textile M/c0.5

3M/c Tools0.1

4Heavy Electrical Machinery0.4

5Engineering Goods0.6

6Process Plants & Equipment0.5

7Metallurgical M/c0.6

Source: Recommendations for 12th Five Year Plan for Capital Goods & Engineering Sector

Sector wise Data: Machine Tools: Export is around 2.5% of the production which is not significant. During the last decade, import has gone up to 65% of total machine tool consumption which also includes machine tools required by defence. The market share of domestic production is around 35%. Exports are projected to grow at 25% CAGR during the next 5 year plan, whereas imports are estimated to grow at a CAGR of 6.7%.

Plastic Processing Machinery: Import is estimated to be Rs 1447Crore and constitute 37.5% of total domestic demand. Comparatively the exports have grown at slower pace with a CAGR of 9.4%.

Earth moving and mining equipment: Construction and Mining industries in India have exported a wide range of machinery to countries in Africa, Indonesia, Malaysia and South America and the value of export is about Rs. 228 Crore during 2010-11.The export effort is led by M/s BEML Limited (a CPSE) which contributed about Rs. 200 Crore in Mining and Construction machinery exports in the financial year 2009-10. Export has grown at CAGR of 6.3% over the last six years. Direct import of machinery by projects and mine operators and construction contractors taking advantage of the favorable duty structure is to the tune of Rs.7395Cr. in 2010-11.

Heavy Electrical and power plant equipment: Exports stand at Rs 20,351Crore in 2010-11 and have grown at a CAGR of17.6%, whereas Rs 31,769Crore worth of electrical equipment is imported and imports have grown at a CAGR of 22.8%.These equipments are primarily hi tech equipments.

Metallurgical machinery: Imports of metallurgical machinery, which were Rs936Crore in 2004-05, have jumped to Rs. 4346Crorein 2010-11, at a CAGR of 29%. It is a matter of concern that, on an average, about 81% of the metallurgical machinery used in the country is being imported. Exports have grown from Rs. 436 Crore in 2004-05 to Rs. 986 Crore in 2008-09and the fell to Rs. 483 Crore in 2010-11.

Textile Machinery: The exports stood at Rs.650 crore (2010-11) and growing at a CAGR of 11.51% whereas imports stood at Rs.5000 crore (2010-11) and growing at a CAGR of 7.18%.

Process Plant Equipment: Exports to the tune of Rs.3194 crore during 2010-11 have been realized for major equipments covering Fertilizers, Refinery, Petrochemicals, Oil and gas sectors etc. and growing at a CAGR of 18.3%. Imports stood at Rs.1548 crore during 2010-11 and growing at a CAGR of 16.5%. The exports are expected to grow at a CAGR of 18.3% and will touch the figure of Rs.8750 crore by 2016-17. The import level is expected to be at Rs.3868 crore by 2016-17 with a CAGR of 16.5%.

Engineering Goods: The export for the sector is around Rs 18,526Crore during the year 2010-11. Overall, 18.5% of the domestic production is exported. The import for the sector is estimated to be around Rs 28,155Croreand they meet 25.5% of domestic demand.