This document summarizes the Indian government's response to questions in Lok Sabha regarding the capital goods sector.
**Production Growth:** The response details the growth in production, in Rs. crore, of various capital goods sub-sectors from 2014 to estimated figures for 2024-25. Sub-sectors include Machine Tools; Dies, Moulds and Press Tools; Textile Machinery; Printing Machinery; Earthmoving and Mining Machinery; Plastic Processing Machinery; Food Processing Machinery; Process Plant Equipment; and Heavy Electrical Equipment. The data indicates varied growth trajectories for each sub-sector, with Heavy Electrical Equipment showing the largest production value. The data is sourced from industry associations including IEEMA, IMTMA, TAGMA, AFTPAI, PMMAI, PPMAI, TMMA, ICEMA and IPAMA.
**GDP Contribution:** The capital goods industry is estimated to contribute approximately 1.9% to India's GDP.
**Scheme for Enhancement of Competitiveness:** 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. The scheme supports Common Technology Development and Services Infrastructure with a total financial outlay of Rs. 1207 crores, including Rs. 975 crores in budgetary support and Rs. 232 crores in industry contribution. To date, 33 projects have been approved under this scheme. These 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.
Key Entities Referenced
Ministry of Heavy Industries: A ministry within the Government of India responsible for the heavy industries sector.
Indian Capital Goods Sector: Refers to the sector of the Indian economy involved in the production of capital goods (machinery, equipment, and tools used by industries).
Gross Domestic Product (GDP): A monetary measure of the market value of all the final goods and services produced and sold (not resold) within a country during a specific period.
Scheme for Enhancement of Competitiveness in Indian Capital Goods Sector: A government initiative designed to boost the competitiveness of the Indian capital goods sector.
SHRI BHUPATHIRAJU SRINIVASA VARMA: The Minister of State for Heavy Industries.
IEEMA: Industry Association related to Capital Goods Sector.
IMTMA: Industry Association related to Capital Goods Sector.
Centres of Excellence CoEs: One of the project types approved under the Scheme for Enhancement of Competitiveness in Indian Capital Goods Sector Phase II. A total of 9 such centres are part of the scheme.
GOVERNMENT OF INDIA
MINISTRY OF HEAVY INDUSTRIES
LOK SABHA
UNSTARRED QUESTION NO. 1401
ANSWERED ON 29.07.2025
INDIAN CAPITAL GOODS SECTOR
1401. SHRI DEVUSINH CHAUHAN:
SHRI KARAN BHUSHAN SINGH:
SHRI RAVINDRA SHUKLA ALIAS RAVI KISHAN:
SHRI KHAGEN MURMU:
SHRI SURESH KUMAR KASHYAP:
Will the Minister of HEAVY INDUSTRIES be pleased to state:
(a) the details of growth in production of capital goods sector from the year 2014 till the year
2025;
(b) the percentage share of capital goods industry in the Gross Domestic Product (GDP) of the
country;
(c) whether the Government has approved any project under 'Scheme for Enhancement of
Competitiveness in Indian Capital Goods Sector'; and
(d) if so, the details thereof?
ANSWER
THE MINISTER OF STATE FOR HEAVY INDUSTRIES
(SHRI BHUPATHIRAJU SRINIVASA VARMA)
(a): Details of growth in production of sub-sectors of Capital Goods Sectors from the year
2014 till the year 2025 is as below
(in Rs. crore)
Sub-Sector
2014- 2015- 2016- 2017- 2018- 2019- 2020- 2021- 2022- 2023-
S.N. of capital 2024-25*
15 16 17 18 19 20 21 22 23 24
Goods
Machine
1 Tools- 4230 4726 5803 7294 9612 6152 6602 9307 11956 13571 14286
Production
Dies,
2 Moulds and 14647 15000 14750 16068 13600 13682 12294 13128 13915 15600 18400
Press Tools
Textile
3 6960 6580 6650 6900 6865 5355 5093 11658 14033 14639 10461
Machinery
Printing
4 Machinery- 15748 16916 13986 12968 12390 12678 10058 13215 16107 23479 29716
Production
Earthmoving
5 and Mining 17000 18500 25000 31800 38900 31020 29021 28674 37551 73000 80750
Machinery
Plastic
Processing
6 2950 2700 3000 3375 3100 2350 3710 3850 3912 4310 4827
Machinery-
ProductionFood
7 Processing 20000 13206 15246 15600 8750 7547 10250 12210 13203 13863 15249
Machinery
Process
8 Plant 18900 19000 19500 18400 27400 29250 21938 24000 23415 27396 31505
Equipment
Heavy
9 Electrical 140308 147136 159257 176823 193781 179199 167706 219158 258832 302900 372200
Equipment
*Estimated data for FY 2024-25
Source: Industry Associations namely IEEMA, IMTMA, TAGMA, AFTPAI, PMMAI, PPMAI,
TMMA, ICEMA & IPAMA
(b): As per the present estimates, the Capital Goods Industry contributes about 1.9% of GDP
of the country.
(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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