The Engineering industry sector recorded a growth of 9.2% (measured in terms of the Index of Industrial Production) during the period April- Nov. 2007-08 over and above the growth of 11.6 % achieved in 2006-07.

Capital goods sector, which posted a robust growth of 17.4 % in April-Nov. 2006-07, has maintained its growth momentum during the current year as well. According to the Index of Industrial Production, capital goods sector posted a growth of 20.8% during April–Nov. 2007-08.

Heavy Electrical Industry encompasses important industry sectors including power generation, transmission and distribution equipments. This also covers turbo generators, boilers, turbines, transformers, switchgears and relays. The performance of this industry is closely linked to the power programme of the country. The Government of India has an ambitious mission of ‘Power for All 2012’. As per working group on Power for 11th plan, a capacity addition of 72000 MW is required. To reach wheel power, an expansion of the regional transmission network and inter regional capacity to transmit power would be essential. This will stimulate substantial demand for heavy electrical equipments. There is a strong manufacturing base for the manufacture of heavy electrical equipment in the country. The technology available in India is almost at par with that in the International market barring few areas of high voltage lines. However, items like CRGO steel and amorphous cores for low loss transformers are being imported.

The capacity established for manufacture of various kinds of turbines, such as steam and hydro turbines including industrial turbines, is more than 7000 MW per annum. Apart from BHEL which has largest installed capacity, there are other units in the private sector who are manufacturing turbines for power generation and industrial use. The manufacturing range of BHEL includes Steam turbines, Boilers, Generators up to 500 MW for utility and commercial cycle application and is capable of manufacturing Steam Turbines with super critical steam cycle parameters and matching generators up to 660 MW size. Facilities are also available for 1000 MW unit size. BHEL has the capacity to manufacture gas turbines upto 260 MW. The A.C. generator industry in India is adequately catering to the alternative power requirement of large and small industries, commercial establishments and domestic sector. Domestic manufacturers in India are capable of manufacturing AC Generator right from 0.5 kVA to 25,000 kVA and above with specified voltage rating. The export and import figures for the year 2006-07 were around Rs. 2100 crores and Rs. 3069 crores respectively.

There are over 600 units engaged in the manufacture of Textile Machinery, their components, accessories and spares and out of these about 100 units are manufacturing the complete machinery. The range includes textile machinery required for sorting, cording, processing of yarns/ fabrics and weaving. The industry is gearing itself to avail of opportunities of supplying machines required to cater the export target of garment manufacturers post Multi Fibre Agreement (MFA). With a capital investment of Rs. 1500 crore and an installed capacity of Rs. 3050

Cement plants based on dry processing and pre-calcination technology for capacities upto 7500 TPD are being manufactured in the country. Modern cement plants are designed for zero downtime, high product quality and better output with minimum energy consumed per unit of cement production etc. At present, there are 18 units in the organized sector for the manufacture of complete cement plant machinery. With an installed capacity of around Rs. 600 crore/annum the industry is fully capable to meet the domestic demand.

Metallurgical machinery includes equipment for mineral beneficiation, ore dressing, size reduction, steel plant equipment, foundry equipment and furnaces. At present there are 39 units in the organized sector engaged in the manufacture of various types of metallurgical machinery. The existing production capacity in the country is sufficient to meet the demand of these equipments in the country. Indigenous manufacturers are in a position to supply majority of the equipment for steel plants e.g. blast furnaces, sinter plants, coke ovens, steel melting shop equipment, continuous casting equipment, rolling mills& finishing line. However, there is a technological gap in the basic design and engineering for plants and equipments required in the ferrous and non-ferrous sector for which the domestic manufacturers are dependent on imported know-how. Since the process of making ferrous and non-ferrous metal is linked up with the design of the equipment, there is a need for close interaction between the process know-how, designers and equipment manufacturers.