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Department of Heavy Industry Ministry of Heavy Industries & Public ...

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Recommendations for 12 th Five Year Plan for Capital Goods & Engineering Sector 25<br />

Capital goods sub-sectors require differentiated approach to<br />

drive growth:<br />

1<br />

2<br />

3<br />

4<br />

Sub-sectors<br />

Earth moving and mining<br />

equipment<br />

<strong>Heavy</strong> electrical & power plant<br />

equipment<br />

Machine tools<br />

5 Process and plant<br />

machines<br />

6 Plastic Processing Machinery<br />

7<br />

Engineering goods<br />

Textile machinery<br />

8 Metallurgical machinery<br />

<strong>Industry</strong><br />

Attractiveness<br />

Self Reliance<br />

Export<br />

Competitiveness<br />

Perspective and<br />

policy direction required<br />

Already on path <strong>of</strong> robust growth<br />

Policy Direction:<br />

• Developing high end technology<br />

• Export Promotion<br />

Need to spur growth<br />

Policy Direction:<br />

• Resolve disadvantages to domestic players<br />

• Network development<br />

• Technology transfer and development<br />

Need protection & nurturing<br />

Policy Direction:<br />

• Demand consolidation<br />

• Technology development<br />

- 7 sectors are in 3 different stages <strong>of</strong> evolution and hence require different<br />

strategies and policies for support.<br />

– Export focus particularly through global champions is required in better<br />

performing sectors like earth moving & mining, heavy electrical equipment<br />

and engineering goods.<br />

– Growth enablement required through technology transfer & removal <strong>of</strong><br />

inhibiting factors for process plant equipment & machine tools.<br />

– Protection <strong>of</strong> domestic demand is required for weaker sectors like Textile<br />

machinery and Metallurgical machinery.<br />

CAPITAL GOODS AND ENGINEERING SECTOR OCTOBER, 2011

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