Capital Goods Sector
Strategic Importance
The Capital Goods Sector encompasses plant and machinery, equipment, and accessories necessary for the direct or indirect manufacture of goods or provision of services. This includes items essential for replacement, modernization, technological upgrading, and expansion purposes.
Additionally, it encompasses packaging machinery and equipment, refrigeration equipment, power generating sets, as well as equipment and instruments used for testing, research and development, quality control, and pollution control.
The Capital Goods sector exerts a multiplier effect and significantly influences the growth of user industries by providing critical inputs—machinery and equipment—to other sectors involved in manufacturing activities.
The capital goods industry accounts for 12% of total manufacturing activity, equivalent to approximately 1.8% of GDP.
Achieving the goal of a 9% GDP growth during the 12th Five Year Plan necessitates that the manufacturing industry expands by at least 11-13% annually.
To meet this target, the Capital Goods sector, recognized as the cornerstone of manufacturing, must grow at a rate of approximately 17-19% annually.
Major Sub-sectors
| 1 | Machine Tools | Constitutes machines related to metal cutting and forming |
| 2 | Power & Electrical equipment | Constitutes machines related to power generation, transmission and distribution |
| 3 | Process Plant Machinery | Constitutes machines such as pressure vessels, evaporators, stirrers, heat exchangers etc. are used in energy, metallurgy, oil and gas, industry etc. |
| 4 | Textile Machinery | Constitutes machines used in various steps of textile fabrication such as spinning weaving, processing, testing etc. |
| 5 | Plastic, Paper & Rubber Machinery | Constitutes machinery used in various fabrication steps of paper, plastic and rubber manufacturing |
| 6 | Light Engineering Goods | Constitutes machines related to roller bearing, process control, instruments, castings, steel forgings, and pipes etc used in oil & gas, power, automotive etc. industries |
| 7 | Earthmoving, Construction and Mining Equipment | Constitutes machines such as graders, dozers, excavators etc for mining and mixers, tippers, road millers etc. For constructions. |
| 8 | Material Handling and Lifting Equipment | Constitutes primarily of forklifts and cranes. |
| 9 | Agricultural Machinery | Constitutes machines used in various steps of agriculture such as land development, sowing weeding, harvesting etc. |
| 10 | Cutting Tool | These tools operate through various cutting mechanisms, such as shearing, grinding, or melting, and are essential in manufacturing, fabrication, and machining processes. |
The Sub Sectors covered under Strategic Manufacturing are as follows:
Sr. NoSub SectorsDescription
|
1. |
Defence |
Constitutes equipment and machines manufactured related to Defence. |
|
2. |
Shipping |
Constitutes ship building and ship scrapping |
|
3. |
Homeland Security |
Homeland Security is a broad field focused on protecting a nation’s territory and citizens from threats. |
|
4. |
Firefighting & Safety Equipment |
Constitutes machines and equipment related to Firefighting and Safety Security. |
Projected Manpower requirement- 2017 & 2022
FunctionMachine ToolsPower & ElectricalsProcess Plant MachineryTextile MachineryPlastic, Paper & Rubber MachineryLight Engineering GoodsTotal
| Production | 237,200 | 679,000 | 227,500 | 131,3000 | 90,700 | 573,300 | 1,939,400 |
| Support Functions | 17,900 | 51,100 | 17,100 | 9,900 | 6,800 | 43,100 | 146,000 |
| 255,000 | 730,100 | 244,600 | 141,700 | 97,500 | 616,400 | 2,085,400 | |
|
Projected Manpower Requirement – 2022
|
|||||||
| Function | Machine Tools | Power & Electricals | Process Plant Machinery | Textile Machinery | Plastic, Paper & Rubber Machinery | Light Engineering Goods | Total |
|---|---|---|---|---|---|---|---|
| Production |
477,500 |
1,240,000 |
385,400 |
226,300 |
215,600 |
1,120,3000 |
3,665,100 |
| Support Functions |
35,900 |
93,300 |
29,000 |
17,000 |
16,200 |
84,3000 |
275,700 |
| Total |
513,400 |
1,333,300 |
414,400 |
243,300 |
231,800 |
1,204,600 |
3,940,800 |
Spread of Capital Goods in Industry
