Detailing the profile of the engineering sector, this presentation highlights the size and scale of the industry in the nation as well as the future path for development of the industry. It lays down key FDI polices as well as the current business opportunities.

1. Vibrant Gujarat 2017
Engineering
Sector Profile

2. Engineering
India Scenario

3. 3
Engineering
Heavy Engineering Light Engineering
• Textile machinery industry
• Cement machinery industry
• Sugarmachinery industry
• Rubbermachinery industry
• Material handlingequipment industry
• Oil field equipment industry
• Metallurgical industry
• Mining machinery industry
• Dairy machinery industry
• Machine toolindustry
• Rolling Bearing Industry
• Medical and surgical instruments
• Process control instruments
• Industrial fasteners
• Ferrous castings
• Steel forgings
• Seamless steel pipesand tubes
• Electrical resistance welded(ERW) steel pipes
and tubes
• Submerged-arc welded (SAW) pipes
• Bicycle industry
Engineering Industry

4. 4
Scale of Industry

5. 5
Engineering Industry
India Ahead
Market Size – Heavy Engineering (USD Billion)
47
55
64
74
87
101
0
20
40
60
80
100
120
2015 2016E 2017E 2018E 2019E 2020E
Market Size (USD Billion)
• Electrical equipmentmarketsize
forecastedtoreachUSD100billion
byFY22 from USD21billion in
FY15
• Engineeringresearch& design (ER
& D) revenuesprojectedto reach
USD45billion in FY20from
USD19.3billion in FY15E.
• Constructionequipmentmarket
projectedtoreachUSD 22.7billion
byFY20 from USD 2.9 billion in
FY15
India’s engineering industry accounts for 27 per cent of the total factories in the
industrial sector and represents63 per cent of overall foreign collaborations

6. 6
Indian Heavy Engineering Industry
Increasing Revenues
Sector-wise Break-Up by Revenues (FY15)
54%
9%
8%
6%
6%
5
5
5 11
Heavy Electrical Process Plant Earth Moving andMining
Textile Machinery Printing Machine Tools
Food Processing Dies,Moulds and Press Tools Metallurgical
Plastic

7. 7
Best Suited regions in India
for Investment
Advantages
• Incentivesequivalentto SEZs
• Tax exemptionson expendituresincurred acquiringapprovals
• Training costs to be treated as R&D costs
• Preferencefor Governmentpurchases
1. Ahemdabad – Dholera Investmentregion, Gujarat
(Size 900 Sq. Km)
2. Shendra – Bidkin IndustrialPark City, Maharashtra
(Size 84 sq. Km)
3. Manesar – Bawal InvestmentRegion, Haryana
(Size 380 sq. Km)
4. Khushkhera – Bhiwandi – NeemranaInvestmentRegion,
Rajasthan (150 sq. Km)
5. Pithampur – Dhar – Mhow InvestmentRegion, Madhya
Pradesh (370 sq. Km)
6. Dadri– Noida – Ghaziabad InvestmentRegion, Uttar
Pradesh (250 sq. Km)
7. Dighi Port IndustrialArea, Maharashtra
(230 sq. Km)
7 National Investment & Manufacturing Zones under DELHI – MUMBAI INDUSTRIALCORRIDOR

8. 8
Foreign Direct Investment

9. 9
Rise in Foreign investment
into the sector
FDI CAGR of 17% over the past 3 years in Industrial
Equipment & Machinery
Most of FDI attracted by Electrical Equipment and
Machine Tools
Source: DIPP
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
2012 2013 2014 2015
Cumulative FDI Equity Inflow (USD Million)
Electrical Equipment Industrial Machinery
Machine Tools Agricultural Machinery
Earth moving Machinery
44%
41%
8%
5% 3%
FDI - Segmentwise
Electrical Equipment Industrial Machinery
Machine Tools Agricultural Machinery
Earth moving Machinery

10. 10
Opportunities

11. 11
5.9
1.3 1.2 0.5 0.1 0.3 0.3 0.5 0.2 0.2
9.3
2.2 2 2.1
0.8
1.8
0.9 0.6 0.4 0.3
Exports (USD Billion) Imports (USD Billion)
Import – Export Gap in HeavyEngineering (USD billion)
Import Export Gaps to be filled
Opportunities
Huge Export – Import Gaps are evident of vast opportunities that the sector possesses

12. 12
Engineering
Gujarat Scenario

13. 13
Engineering SME Clusters
30
1310
7
6
17
Industrial Clusters
Engineering
Textiles
Food
Processing
Chemicals
Minerals
• Engineering sectorofGujarat contributes around 18%to
state’s totalindustrialproductionand around 9%to the
nationalengineering output.
• Engineering sectorin Gujarat comprises more than 300 units
in large sector and 75,00 unitsin small and medium (SMEs)
enterprises.
Source:IBEF
6%
6.70%
9%
10.40%
12.70%
16.20%
Electronics Electrical
Equipment
Transport
Equipment
Basic
Metals
Machinery
and
Equipment
Fabrication
of Metal
Products
Share of Gujarat in national engineering
goods production • The small-scaleindustry is a significant
contributorto the production ofbrass
parts, foundry, forgingand machine tools,
oil engines and electric motors,
submersiblepumpsand industrial valves
and bearings.
• Gujarat houses83 product clusters; out
ofwhich 30 are engineeringproduct
clusters.
• The brass parts clusteratJamnagar has
over5,000 smallunits and meetsalmost
70% of the entirerequirementfor
brass parts in India.

14. 14
The Engineering SME cluster of Gujarat is mainly concentrated at Ahmedabad, Anand, Rajkot,
Vadodara, Surendranagar, Jamnagar, Mehsana, Panchmahal and Kutch
Foundry& Forgings
Steel re-rolled products
Brassparts
Fabricated metal products
Steel & Aluminium Furniture
Electricmotors
Power driven pumps
Textile machineryparts
Chemical machineryparts
Food processingmachinery
Machine tools
Diesel engine & parts
Ball & Roller bearings
Automobile & autoparts
Steel Pipesand tubes
Earth MovingMachinery
Pumpsand Valves
Kutch
Jamnagar
Porbandar
Junagadh
Amreli
Bhavnagar
Rajkot
Surendranagar
Ahmedabad
Vadodara
Bharuch
Surat
Navsari
Valsad
Gandhinagar
Banaskantha
Sabarkantha
Patan
Mehsana
Anand
Dang
Panchmahal
Nadiad
Kheda
• Alang, a port in Bhavnagar, is the largest
ship recycling yard in the world.
Engineering SME Clusters

15. 15
Heavy Engineering : Gujarat
Scenario
Heavy engineering
Heavy electrical
Heavy engineering
and machine tools Automotive
• Boilers
• Turbines andgeneratorsets
• Transformers
• Switchgear andcontrol gear
• Textilemachinery
• Ceramicmachinery
• Sugarmachinery
• Rubbermachinery
• Materialhandlingequipment
• Oil fieldequipment
• Metallurgical machinery
• Dairy machinery
• Earth movingandconstruction
machinery
• Agricultural machinery
• Passengerandutilityvehicles
• Auto components andauto
ancillaries

16. 16
Light Engineering : Gujarat
Scenario
Light engineering
Low technology
products
High technology
products
Plastic
Machineries
• Roller bearings
• Welding equipment and
consumables
• Casting and forging
• Pipes and tubes
• Fasteners
• Medical and surgical
instruments
• Process control instruments
• Domestic appliances
• Electronics
• Injection moulding
• Extrusion
• Blow moulding
• Reprocessing
• Extrusion coating

17. 17
By 2020,Gujarataims to achieve10%of Engineering outputfrom Auto and auto
componentsfrom currentlevelof 3.7%
Okha
Simar
Navlakhi
Dholera
Savli
Anjar
Rajkot
Sanand
Halol
Particular Symbol
ExistingAuto Clusters
Emerging auto clusters in
SIRs by 2015
Emerging auto clusters in
SIRs by 2020
DMIC influence area
The upcoming Special Investment Regions (SIR) will act as global investment destinations,
supportedby modern infrastructure,premium civic amenities,centers ofexcellence and proactive
policy framework.
Auto and Auto Ancillary Clusters

18. 18
Make in India
An initiative by Government of India to encourage multi-
national & domestic companies to manufacture their
products in India and promote growth of Manufacturing,
Infrastructure& Services sectors

19. 19
Make in India - Incentives
• 5% interest reimbursement & 10% capital subsidy for production of equipment/machines/devices for
controllingpollution, reducing energy consumption and waterconservation
• A grant of25% to SMEs forexpenditureincurred on audit subject to a maximumofINR 1,00,000
• A 10% one-time capital subsidy forunits practicing zerowaterdischarge
• A rebate on watercessforsetting up wastewater recyclingfacilities
• An incentive of INR 2,00,000 for all buildings which obtain a green rating under the IGBC/LEED or GRIHA
systems
• Incentivesto units set-upin SEZ, NIMZand EOUs
• Exports incentives like duty drawback, duty exemption/remission schemes, focus products & market
schemes etc.
• Areas based incentives like unit set-up in north east region, Jammu & Kashmir, Himachal Pradesh,
Uttarakhand
• SMEs will be given access to the patent pool and/or part of reimbursement of technology acquisition costs
up to a maximum of Rs. 20 lakh for the purpose of acquiring appropriate technologies up to a maximum of 5
years
• Reimbursement of50% oftechnology transferfee orRs. 20 lakh (whicheverlower)
• Financial support foracquiringoftechnology/patent – subsidy of50% orRs. 20 lakh (whicheverlower)
• Subsidy of up to 10% ofcapital expenditure incurred on new plant and machinery orRs. 50 lakh

20. 20
Ease of Doing Business

21. 21
Ease of Doing
Business - Initiatives
• Online application process for Industrial License & IEM made on 24×7 basis through eBiz portal
• Services of all Central Govt. Departments & Ministries integrated with eBiz – a single window IT
platform for services.
• Validityof Industrial license extended to 3 years
• New de-licensing & deregulationmeasures to reducecomplexity, increasing speed & transparency
• States to introduce self-certificationand thirdparty certificationunder BoilersAct.
• Major components of Defenceproducts list excluded from industrial licensing*
• Process of obtaining environmental clearances made online
• No distinction between partial and full commencement of production for all product
• Colour-codedmaps for locations requiring NOC from the AirportsAuthority of India hosted online

22. 22
Gujarat Ranked 1 in Ease of
Doing Business 2015
Gujarat achieved the top spot amongst all states in
DIPP & World Bank’s EODB Index
1st • Complying with environment procedures
2nd
• Allotment of Land & Construction Permits
• Complying with labor regulations
• Obtaining infrastructure related utilities
• Carrying out inspections
3rd • Enforcing contracts

23. 23
National Manufacturing Policy

24. 24
National Manufacturing Policy
• The National Manufacturing Policy is a significant policy formulated by the government to facilitate
the growth of the manufacturingsector in India.
• Under the policy, the government has planned to set up National Investment and Manufacturing
Zones (NIMZ) to bolster the growth of manufacturing activities in India. These zones are expected to
be 5,000 hectares in size with at least 30 per cent area earmarked for processing.
• With an aim of accentuating growth in the manufacturing sector, the government would provide 15
per cent exemption on tax to manufacturing companies that invest more than USD18.4 million in
plant and machinery over FY15
• The government has eliminated tariff protection on capital goods and has also reduced custom duties
on various engineeringequipment
• The governmenthas approved anumber of SEZs across India for bolstering growth in the sector
• National Manufacturing Policy has been launched by the government with an aim of enhancing the
sector’s share in GDP to 25 per cent within a decade and creating 100 million jobs by 2022.

25. 25
Skill India
An initiative by Governmentof Indiato train over 40crorepeoplein
India in differentskillsby2022

26. 26
Ease of Doing
Business - Initiatives
• The Mission hasbeendevelopedto createconvergence acrosssectors and Statesin terms ofskill
training activities
• Coordinatedefforts from NSDC,NSDA and DGT as a part ofNational Skill Development Mission
NationalSkillDevelopment Mission
• The objective is to meet the challenge ofskilling at scale with speed andstandard
• An umbrella frameworkto align all skilling activitiesacrossthe country to common standards
and linkthe skilling with demand centres
NationalPolicy forSkillDevelopmentandEntrepreneurship 2015
• The objective is to enableand mobilizea large numberofIndian youth to take up outcome based
skill training and becomeemployable andearn theirlivelihood
Pradhan MantriKaushalVikas Yojana (PMKVY)
• The objective is to providea loan facilityto individuals whointendto take up skill development
courses as perthe Skilling Loan Eligibility Criteria
Skill Loan Scheme

27. 27
Infrastructure

28. 28
Infrastructure Development
• Impetuson developingIndustrial Corridors
• A new ‘National Industrial Corridor Development Authority’ is being created to coordinate,
integrate, monitor and supervise developmentof all Industrial Corridors
• North-eastern part of India planned to be linked with other Industrial corridors in cooperation with
Governmentin Japan
• Approval accorded to 21 Industrial projects under Modified Industrial Infrastructure Up-gradation
Scheme
• Approvalaccorded to 17 National Investmentand Manufacturingzones
• New Industrial Clusters for promotingadvancepractices in manufacturing

29. 29
FORADDITIONALINFORMATIONCONNECTUS @
iNDEXTb -IndustrialExtensionBureau
Gujarat Industrial Development Corporation
http://www.indextb.com
http://www.gidc.gov.in
Gujarat InfrastructureDevelopment Board http://www.gidb.org
Industries Commissionerate httP://www.ic.gujarat.gov.in
Industries and MinesDepartment http://www.imd-gujarat.gov.in/

30. 30
Thank You
Disclaimer:
Industrial Extension Bureau (iNDEXTb), Government of Gujarat has made every attempt to ensure the accuracy and
reliability of the information provided in this document. However, the information is provided "as is" without warranty of
any kind. iNDEXTb periodically adds, changes, improves or updates the information in this document without any notice. For
further clarification kindly get in touch with Industrial Extension Bureau (iNDEXTb), Government of Gujarat.