Heavy Engineering and Machine Tools Sector consists of Capital Goods Industry. Prominent sub-sectors of Capital Goods Industry are Machine Tools, Textile Machinery, Construction and Earthmoving, Construction and Mining Machinery and other heavy industrial machinery such as Cement Machinery, Rubber Machinery, Metallurgical Machinery, Chemical and Fertilizer Machinery, Printing Machinery, Dairy Machinery, Material Handling Equipment, Oil Field Equipment, Paper Machinery etc. These industries are de-licensed and foreign direct investment (FDI) up to 100 percent under automatic route as well as technology collaboration is allowed freely. Import of old and new machineries is allowed freely. The maximum basic customs duty rate is generally 7.5%. India has entered many FTAs , in which the duty rates are even lower. Lower duty rates are also available under the Project Imports facility. Exports are promoted by allowing duty free imports of raw materials, consumables , components and sub-assemblies through various schemes of DGFT.
The Department has reconstituted Development Councils for Machine Tools Industry, Earthmoving, Construction and Mining Machines and Textile Machinery Industry. These Development Councils are the platform where machinery/equipment manufacturers, users of machineries and policy maker from Government Departments discuss the various issues and take decisions for the sustainable growth of these industries.
The Department’s Scheme for Enhancement in the Competitiveness of the Capital Goods Sector has encouraged technology upgradation, skill development and augmentation of modern manufacturing capacities in an effort to enhance the competitiveness of the industry.
Machine Tools Industry
The Machine Tool industry is considered as the mother industry as it supplies machinery for the entire manufacturing sector. The manufacturers of machine tools are mostly SMEs, few of them are mid-sized manufacturers which have an annual turnover varying between Rs. 300-500 crore. The types of machine tools currently manufactured are general/special purpose machines, standard Computer Numerical Control (CNC) machines, gear cutting, grinding, medium size machines, electrical discharge machining (EDM), presses, press brakes, pipe bending, rolling, bending machines, etc.
Textile Machinery Industry
A majority of the units engaged in the manufacture of textile machinery in the country are small and medium manufacturers. Major textile machineries include weaving machines, spinning machines, winding machines, processing machines, synthetic fiber machines etc.
Plastic Processing Machinery Industry
The plastic machines being manufactured are injection moulding machines, blow moulding machines and extrusion moulding machines etc. Product technologies are at par with the leading brands of the developed world. The global leading manufacturers/technologies have manufacturing presence in India through their wholly owned subsidiaries or through technology license arrangements.
Dies, Moulds & Tools Industry
The Indian tool room industry consists of commercial tool makers engaged in design, development and manufacturing of tooling in the country. In addition to commercial tool makers, several Government toolrooms –cum-training centers are also operating. The key tool room locations are Mumbai, Bengaluru, Chennai, Pune, Hyderabad and Delhi NCR.
Earthmoving, Construction and Mining Equipment
The Indian Earthmoving, Construction and Mining Machinery produces backhoe loaders, compactors, mobile cranes, pavers, batching plants, crawler crane, transit mixer, concrete pump, tower cranes, hydraulic excavators, dumpers, mining shovel, walking draglines, dozers, wheel loaders, graders, drilling equipment, tunneling machine, etc.
A majority of the units engaged in the manufacturer of Printing machinery are small and medium manufacturers. Major printing machine manufactured locally are web offset printing machines, UV coating curing machine, flexographic printing machine, screen printing machines, wire stitching machine, lamination machine, etc.
Food Processing Machinery
A majority of the units engaged in the manufacture of food processing machinery are small and medium manufacturers. Major food processing machinery manufactured in India are peelers, sorters, graders, pulpers, grinders, mixers, cookers, fryers, dryers, pulverizers, soya milk machines, food grain and coffee millers, bakery machinery, forming-filling- sealing machine, milking and dairy machines, juicing line, etc.