**Executive Summary**
This document, released by the Ministry of Heavy Industries on February 10, 2026, provides a status update on the heavy industries sector. It includes production, sales, and export data for the automobile sector in 2025 and the capital goods industry for the financial year 2024-25. The document also outlines various government schemes aimed at promoting domestic manufacturing and technological upgrades.
**Key Points / Main Content**
* **Automobile Sector Performance (January-December 2025):**
* Contribution: The automobile sector contributes nearly 15% of the country's GST revenue and employs approximately 30 million people.
* Production, Sales, and Exports (in lakhs):
* Passenger Vehicles: 53.8 (Production), 44.9 (Sales), 8.6 (Exports)
* Commercial Vehicles: 11.1 (Production), 10.3 (Sales), 0.9 (Exports)
* Three Wheelers: 12.2 (Production), 7.9 (Sales), 4.3 (Exports)
* Two Wheelers: 255.0 (Production), 205.0 (Sales), 49.4 (Exports)
* **Capital Goods Industry Performance (FY 2024-25):**
* Contribution: The Capital Goods Industry contributes about 1.9% of GDP.
* Production, Imports, and Exports (in Rs. crore):
* Machine Tools: 14,286 (Production), 18,686 (Import), 1,472 (Export)
* Dies, Moulds and Press Tools: 18,400 (Production), 9,400 (Import), 2,300 (Export)
* Textile Machinery: 10,461 (Production), 16,417 (Import), 2,242 (Export)
* Printing Machinery: 29,716 (Production), 12,651 (Import), 2,584 (Export)
* Earthmoving and Mining Machinery: 80,750 (Production), 4,250 (Import), 6,800 (Export)
* Plastic Processing Machinery: 4,827 (Production), 4,405 (Import), 2,428 (Export)
* Food Processing Machinery: 15,249 (Production), 10,850 (Import), 4,562 (Export)
* Process Plant Equipment: 31,505 (Production), 7,645 (Import), 10,968 (Export)
* **Government Schemes:**
* **Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry (PLI-Auto):** Aims to enhance manufacturing capabilities for Advanced Automotive Technology (AAT) products with a budgetary outlay of Rs. 25,938 crore.
* **Production Linked Incentive Scheme on National Programme on Advanced Chemistry Cell (ACC) Battery Storage:** Aims to establish a competitive domestic manufacturing ecosystem for 50 GWh of ACC batteries with a budgetary outlay of Rs. 18,100 crore.
* **PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM EDRIVE) Scheme:** Implemented from 01.04.2024 to 31.03.2028 with an outlay of Rs. 10,900 crore to support electric vehicles and infrastructure.
* **Scheme for Promotion of Manufacturing of Electric Passenger Cars in India (SPMEPCI):** Notified on 15.03.2024 to promote the manufacturing of electric cars in India.
* **Scheme on Enhancement of Competitiveness in The Indian Capital Goods Sector- Phase-II:** Implemented to encourage technology development and augment manufacturing infrastructure. Phase II includes 29 sanctioned projects.
* Phase I has established 4 Smart Advanced Manufacturing and Rapid Transformation Hub (SAMARTH) Centres.
* Phase II sanctions projects for Promotion of skilling in Capital Goods Sector.
**Impact Analysis**
**Automobile and Auto Component Manufacturers:**
* **Impact:** Beneficiaries of the PLI-Auto scheme through financial incentives and increased investment.
* **Action Required:** Attract investments to boost domestic manufacturing of AAT products including EVs.
**ACC Battery Manufacturers:**
* **Impact:** Beneficiaries of the PLI Scheme on National Programme on Advanced Chemistry Cell (ACC) Battery Storage.
* **Action Required:** Establish a competitive domestic manufacturing ecosystem for ACC batteries.
**Electric Vehicle Manufacturers and Consumers:**
* **Impact:** Beneficiaries of the PM EDRIVE Scheme which provides demand incentives for electric vehicles.
* **Action Required:** Adopt and promote EV manufacturing and adoption.
**Capital Goods Sector:**
* **Impact:** The Scheme on Enhancement of Competitiveness provides opportunities for technology development and infrastructure upgrades.
* **Action Required:** Participate in sanctioned projects, use CoEs and CEFCs, and develop skill packages.
**Skills Development Councils:**
* **Impact:** Required to create skilling packages for skill levels 6 and above
* **Action Required:** Develop skilling packages for skill levels 6 and above.
Key Entities Referenced
Ministry of Heavy Industries: Responsible for implementing the schemes and providing the data in the document.
Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry in India (PLI-Auto): A scheme to enhance manufacturing capabilities for Advanced Automotive Technology (AAT) products.
Production Linked Incentive Scheme on National Programme on Advanced Chemistry Cell (ACC) Battery Storage: A scheme for manufacturing of ACC batteries in the country.
Scheme on Enhancement of Competitiveness in The Indian Capital Goods Sector- Phase-II: A scheme to encourage technology development and augment manufacturing infrastructure in the Capital Goods Sector.
PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM EDRIVE) Scheme: A scheme to support electric vehicles including e-2W, e-3W, e-Trucks, e-buses and e-Ambulances.
Ministry of Heavy Industries
STATUS OF HEAVY INDUSTRIES SECTOR
Posted On: 10 FEB 2026 4:39PM by PIB Delhi
As per information received from Society of Indian Automobile Manufacturers (SIAM), the automobile
sector contributes nearly 15% of the country's GST Revenue Collections. The sector is also a significant
employment creator in the country with an estimated 30 million jobs (Direct: 4.2 Mn, Indirect: 26.5 Mn)
across the entire automotive value chain. The production, sales and exports of automobiles in India during
January to December, 2025 is as under : -
Production, Sales and Export of Automobiles in India (January–December 2025)
(Nos. in lakh)
Category Production Sales Exports
Passenger Vehicles 53.8 44.9 8.6
Commercial Vehicles 11.1 10.3 0.9
Three Wheelers 12.2 7.9 4.3
Two Wheelers 255.0 205.0 49.4
(Source: SIAM)
Further, as per present estimates, the Capital Goods Industry contributes about 1.9% of GDP. This sector is
crucial for the development of domestic manufacturing capabilities from a national self-reliance
perspective. Production, Import and Export-data of the sector for the financial year 2024-25 are given as
under: -
(figures in Rs. crore)
Sl. No. Sub-sectors of Capital Goods Production Import Export
1 Machine Tools 14,286 18,686 1,472
2 Dies, Moulds and Press Tools 18,400 9,400 2,300
3 Textile Machinery 10,461 16,417 2,242
4 Printing Machinery 29,716 12,651 2,5845 Earthmoving and Mining 80,750 4,250 6,800
Machinery
6 Plastic Processing Machinery 4,827 4,405 2,428
7 Food Processing Machinery 15,249 10,850 4,562
8 Process Plant Equipment 31,505 7,645 10,968
(Source: Industry Associations namely, IMTMA, TAGMA, TMMA, IPAMA, ICEMA, PMMAI, AFTPAI,
PPMAI)
The following schemes are being implemented by the Ministry of Heavy Industries(MHI) to promote
domestic manufacturing and technological upgradation:
(i) Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry
in India (PLI-Auto): The Government approved this scheme on 23.09.2021 for Automobile and
Auto Component Industry in India for enhancing India's manufacturing capabilities for Advanced
Automotive Technology(AAT) products with a budgetary outlay of Rs. 25,938 crore. The scheme
proposes financial incentives to boost domestic manufacturing of AAT products including EVs with
minimum 50% Domestic Value Addition (DVA) and attract investments in the automotive
manufacturing value chain.
(ii) Production Linked Incentive Scheme on National Programme on Advanced Chemistry
Cell (ACC) Battery Storage: The Government on 12.05.2021 approved PLI Scheme for
manufacturing of ACC in the country with a budgetary outlay of Rs.18,100 crore. The scheme aims
to establish a competitive domestic manufacturing ecosystem for 50 GWh of ACC batteries.
(iii) PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM EDRIVE) Scheme:
This scheme with an outlay of Rs. 10,900 crore is implemented w.e.f. 01.04.2024 till 31.03.2028.
The scheme aims to support electric vehicles including e-2W, e-3W, e-Trucks, e-buses and e-
Ambulances. The scheme also includes support for EV public charging stations and upgradation of
testing agencies. Under this scheme, demand incentive is provided to buyers (consumers/end users)
of e-2Ws, e-3Ws (e-rickshaws & e-carts), e-3Ws (L5), e-trucks and e-ambulances in the form of an
upfront price reduction at the time of purchase of the electric vehicle.
(iv) Scheme for Promotion of Manufacturing of Electric Passenger Cars in India (SPMEPCI):
This scheme was notified on 15.03.2024 to promote the manufacturing of electric cars in India.
(v) Scheme on Enhancement of Competitiveness in The Indian Capital Goods Sector- Phase-
II: In order to encourage the technology development and to augment the manufacturing
infrastructure in the Capital Goods Sector, this demand driven scheme is being implemented on pan
India basis. Under Phase II of this Scheme, a total of 29 projects have been sanctioned which
include 7 Centres of Excellence (CoEs), 4 Common Engineering Facility Centres (CEFCs), 6
Testing and Certification Centres, 9 Industry Accelerators for Technology Development and 3
projects for Creation of Qualification Packs for skill level 6 and above.
Under phase I of the Scheme on Enhancement of Competitiveness in The Indian Capital Goods Sector,
MHI has set up 4 Smart Advanced Manufacturing and Rapid Transformation Hub (SAMARTH) Centres
namely Centre for Industry 4.0 (C4i4) Lab Pune, IITD-AIA Foundation for Smart Manufacturing, IITDelhi, I-4.0 India @ IISc, Bengaluru, Smart Manufacturing Demo & Development Cell, CMTI,
Bengaluru.
Under phase II of the Scheme on Enhancement of Competitiveness in The Indian Capital Goods Sector,
following projects have been sanctioned for Promotion of skilling in Capital Goods Sector– creation of
skilling packages for skill levels 6 and above:
(i) ASDC (Automotive Skills Development Council),
(ii) CGSSC (Capital Goods & Strategic Skills Council)
(iii) IASC (Instrumentation, Automation, Surveillance and Communication)
This information was given by the Minister of State for Heavy Industries, Shri Bhupathiraju Srinivasa
Varma in a written reply in the Lok Sabha today.
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