This document summarizes the Indian government's response to a parliamentary question regarding the capital goods sector. The data indicates a consistent increase in production across various sub-sectors within the capital goods industry from FY 2020-21 to FY 2024-25 (estimated). Specifically, significant growth is observed in Heavy Electrical Equipment, Machine Tools, and Printing Machinery Production. The capital goods industry's contribution to India's GDP is approximately 1.9%. Furthermore, the Ministry of Heavy Industries (MHI) launched the Scheme for Enhancement of Competitiveness in the Indian Capital Goods Sector Phase-II on January 25, 2022, with a total financial outlay of Rs. 1207 crores (Rs. 975 crores from budgetary support and Rs. 232 crores from industry contribution). As of the date of this response (August 8, 2025), 33 projects have been approved under this scheme, encompassing 9 Centres of Excellence (CoEs), 5 Common Engineering Facility Centres (CEFCs), 7 Testing and Certification Centres, 9 Industry Accelerators for Technology development, and 3 projects for the creation of Qualification Packs (QPs). Data is sourced from industry associations including IEEMA, IMTMA, TAGMA, AFTPAI, PMMAI, PPMAI, TMMA, ICEMA, and IPAMA.
Key Entities Referenced
Ministry of Heavy Industries: The Indian government ministry responsible for the capital goods sector and the implementation of relevant schemes.
Scheme for Enhancement of Competitiveness in the Indian Capital Goods Sector: A government initiative by the Ministry of Heavy Industries to support the capital goods sector through technology development and infrastructure improvements.
DR. KAVITA PATIDAR: Member of Parliament who raised a question in Rajya Sabha regarding the capital goods sector.
SHRI BHUPATHIRAJU SRINIVASA VARMA: The Minister of State for Heavy Industries who provided the answer to the question in Rajya Sabha.
Indian Capital Goods Sector: The industry focused on the production of machinery, equipment, and other capital assets used in various sectors of the Indian economy.
IEEMA: Industry Association related to Heavy Electrical Equipment
IMTMA: Industry Association related to Machine Tools
January 25, 2022: Date of launch of the Scheme for Enhancement of Competitiveness in the Indian Capital Goods Sector PhaseII.
GOVERNMENT OF INDIA
MINISTRY OF HEAVY INDUSTRIES
RAJYA SABHA
UNSTARRED QUESTION NO. 2318
ANSWERED ON 08.08.2025
INCREASE IN PRODUCTION OF CAPITAL GOODS SECTOR
2318. DR. KAVITA PATIDAR:
Will the Minister of Heavy Industries be pleased to state:
(a) the increase in the production in the capital goods sector since 2020-21;
(b) the percentage share of the capital goods industry in India’s GDP;
(c) whether Government has sanctioned any projects under the Scheme for Enhancement of
Competitiveness in the Indian Capital Goods Sector; and
(d) if so, the details thereof?
ANSWER
THE MINISTER OF STATE FOR HEAVY INDUSTRIES
(SHRI BHUPATHIRAJU SRINIVASA VARMA)
(a): The increase in the production in the capital goods sector since 2020-21;
(in Rs. crore)
S.N. Sub-Sector of capital Goods 2020-21 2021-22 2022-23 2023-24 2024-25*
1 Machine Tools-Production 6602 9307 11956 13571 14286
2 Dies, Moulds and Press Tools 12294 13128 13915 15600 18400
3 Textile Machinery 5093 11658 14033 14639 10461
Printing Machinery-
4 10058 13215 16107 23479 29716
Production
Earthmoving and Mining
5 29021 28674 37551 73000 80750
Machinery
Plastic Processing Machinery-
6 3710 3850 3912 4310 4827
Production
7 Food Processing Machinery 10250 12210 13203 13863 15249
8 Process Plant Equipment 21938 24000 23415 27396 31505
9 Heavy Electrical Equipment 167706 219158 258832 302900 372200
*Estimated data for FY 2024-25
Source: Industry Associations namely IEEMA, IMTMA, TAGMA, AFTPAI, PMMAI,
PPMAI, TMMA, ICEMA and IPAMA
(b): As per the present estimates, the Capital Goods Industry contributes about 1.9% of GDP
of the country.-2-
(c) & (d): On January 25, 2022, Ministry of Heavy Industries (MHI) launched the
“Scheme for Enhancement of Competitiveness in the Indian Capital Goods Sector- Phase-II”
for providing assistance to Common Technology Development and Services Infrastructure
with total financial outlay of Rs. 1207 crores with budgetary support of Rs. 975 crores and
Industry Contribution of Rs. 232 crores. Under the Scheme, a total of 33 projects have been
approved. These 33 projects include 9 Centres of Excellence (CoEs), 5 Common Engineering
Facility Centres (CEFCs), 7 Testing and Certification Centres, 9 Industry Accelerators for
Technology development and 3 projects for Creation of Qualification Packs (QPs) for skill
level 6 and above.
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