Lok Sabha Question No. 4163 (UNSTARRED), answered on 2022-03-29
Subject: Export of Indigenous Products
Ministry: HEAVY INDUSTRIES
Asked by: Harish Dwivedi

## GOVERNMENT OF INDIA MINISTRY OF HEAVY INDUSTRIES

## LOK SABHA

## UNSTARRED QUESTION NO. 4163

ANSWERED ON 29.03.2022

## EXPORT OF INDIGENOUS PRODUCTS

## 4163.  SHRI HARISH DWIVEDI:

Will the Minister of HEAVY INDUSTRIES भारी उद्योग मंत्री be pleased to state:

- (a) whether the export of indigenous products has increased during the last three years and the current year, if so, the details thereof and the products whose export has increased; and
- (b) the steps taken by the Government to promote the export of indigenous products?

ANSWER

## THE MINISTER OF STATE FOR HEAVY INDUSTRIES (SHRI KRISHAN PAL GURJAR)

- (a) : The  export  of  Heavy  Electrical  Equipment  has  increased  during  last  three  years  as tabulated below:

| In Rs. Crore   | In Rs. Crore   | In Rs. Crore   | In Rs. Crore   |
|----------------|----------------|----------------|----------------|
| 2017-18        | 2018-19        | 2019-20        | 2020-21        |
| 41,677         | 52,910         | 60,698         | 63,839         |

(Source: IEEMA, DGCIS)

As  per  the  inputs  provided  by  Manufacturers  Association,  the  export  of  products pertaining  to  Heavy  Electrical  Industries  i.e.  Turbine,  Generators  and  rotating  machines, Transformers, Switch Gears and control gears, etc.  has increased in last three years.

In  addition,  India's  exports  of  indigenous  products  relating to  Capital  Goods during the last three years:

| Values in US $ million                |   2018-19 |   2019-20 |   2020-21 |   Apr-Jan 2021 |   Apr-Jan 2022 |
|---------------------------------------|-----------|-----------|-----------|----------------|----------------|
| India's Export of Indigenous products |   14323.2 |     13352 |   11337.9 |        9020.43 |          12013 |

As  per  the  above  table,  India's  exports  of  indigenous  products  relating  to  Capital Goods  during  the  last  three  years  has  declined.    However,  in  the  current  year  i.e.  AprilJanuary 2022, it has increased over the last fiscal i.e.  April-January 2021 by more than 33%. The major products whose exports have increased are Nuclear Reactors, Industrial Boilers and Parts,  Electric  Machinery  and  Equipment,  IC  Engines  and  Parts,  Pumps  of  all  types,  Air condition  and  Refrigeration  Machinery  and  Parts,  Industrial  Furnaces,  Water  heaters  and Centrifuges  and  Compressor,  Industrial  Machinery  for  dairy,  agriculture,  food  processing, textiles, paper, chemicals, etc.

(Source: EEPC India)

(b): For promoting export of indigenous products, this Ministry has launched the following two  schemes  to  boost  indigenous  production  and  make  India  a  world  class  manufacturing destination:- i) Production  Linked Incentive (PLI) scheme for Automobile and Auto Components Union  Cabinet  on  15 th September,  2021  approved  PLI  scheme  for  Automobile  and  Auto Components  with  an  outlay  of  Rs.25,938  crore  to  incentivise  manufacturing  of  Advanced Automotive  Technology  products  and  attract  investments  in  the  automotive  manufacturing value chain.  Its prime objectives include overcoming cost disabilities, creating economies of scale  and  building  a  robust  supply  chain  in  areas  of  Advanced  Automotive  Technology products.  It is estimated that over a period of five years, the PLI Scheme for Automobile and Auto Components Industry will attract fresh investment of over ₹42,500 crore, incremental production  of  over  ₹2.3  lakh  crore  and  will  create  additional  employment  opportunities  of over 7.5 lakh jobs.

This scheme will facilitate the Automobile Industry to move up the value chain into higher value added products and increase India's share in global automotive trade.  Incentives are applicable on domestic as well as exports sales.

ii) PLI  Scheme  'National  Programme  on  Advanced  Chemistry  Cell  (ACC)  Battery Storage': PLI Scheme for ACC has been approved by Union Cabinet on 12 th May, 2021 and the  Scheme  has  been  notified  on  9 th June,  2021  for  implementation  of  giga-scale  ACC manufacturing facilities in India.  Through this Scheme, the Government of India intends to optimally incentivize potential investors, both domestic and overseas, to set- up Giga-scale ACC manufacturing facilities with emphasis on maximum value addition and quality output and achieving pre committed capacity level within a pre-defined time-period.

Ministry of Heavy Industries (MHI) is also implementing the Scheme for 'Enhancement of Competitiveness in the Indian Capital Goods Sector' since 2014 in order to encourage the technology development and to augment the manufacturing infrastructure in the Capital Goods sector for domestic as well as export purposes.

Also to augment the above efforts, MHI has notified the Scheme on Enhancement of Competitiveness in The Indian Capital Goods Sector- Phase-II on January 25, 2022.

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