1、CAPITAL GOODSAugmenting New Indias Growth Capacity USD 43.2 Bn Market size(2020)12%Contribution to total manufacturing activity in India which translates to about 2%of GDP 4th Largest Asian Market for machine tools consumption USD 8.5 Bn FDI inflows in the Electrical Equipment sector (April 2000-Dec

2、ember 2019)5 Mn direct&25 Mn indirect employment generation anticipated by 2025 Market size is expected to reach USD 112 Bn by 2025 7%CAGR over 5 years 8th Largest consumer of machine tools globally(2017)100%FDI allowed under automatic route in Electrical Machinery sector SectorOverview23Growth Driv

3、ersInfrastructure Investmentsare expected to increase to USD 778.90 Bn in FY 2020-25,which will provide a significant boost to demand for capital goodsProduction Linked IncentivesUSD 26 Bn incentives for 13 sectors giving manufacturing aUSD 520 Bn boost in the next five yearsFour Centres of Excellen

4、ceapproved by the Department of Heavy Industry in textilemachinery,machine tools,welding technology and smartpumps to enhance industry competitivenessNuclear Capacity Expansionwill provide significant business opportunities to theelectrical machinery industryAdvantage India Tax structure:Corporate t

5、axes 25%,Import duties maximum 10%,General Import Duty 7.5%,GST 18%No industrial license required No import license required Possibility to form company online Land can be availed in well located industrial parks01020304054PolicyIncentivesA.National Capital Goods Policy:Launched in 2016,it aims to i

6、ncrease industrial production of the sector to USD 100 Bn It played a pivotal role for manufacturing to contribute significantly to Make in India It also took steps to promote technology,skills,exports and common facility centers in an effort to strengthen the overall industrial infrastructure.B.Cen

7、tral Export Initiatives:Export Promotion Capital Goods Scheme(EPCG):Allows duty-free import of capital goods used in pre-production,production&post-production subject to conditions Custom Bonded Warehousing Scheme:Licensed premise to store&process(packaging;labelling;repackaging)domestic&foreign goo

8、ds with deferred customs duty payment Deferred Duty on Capital Goods Capital Goods intended for use in a warehouse wherein manufacturing or other operations have been permitted may remain warehoused till their clearance.The duty payable on import is deferred till their clearance.Deferred Duty on Imp

9、orted Inputs Import duties payable on inputs for use in manufacturing will be paid at the time of supply of resultant product from the warehouse.In case that the finished good is exported,no duty is required to be paid on the imported inputs.5C.Export Oriented Units Scheme(EOU):EOUs can be set up an

10、ywhere in the country and attract duty&GST exemptions D.Free Trade&Warehousing Zones(FTWZ):Special category of Special Economic Zones with duty&tax exemptions that are set up with a focus on trading and warehousingE.Remission of Duties&Taxes on ExportedProducts(RODTEP):Embedded central,state&local d

11、uties/taxes are refunded and creditedto the exporters.It has been extened to cover all goods from January1st,2021F.Duty Drawback Scheme under Customs Act,1962:Refund of customs duty on imported&indigenous materials used in the manufacture of exported goodsDeferred DutyGST PaidBCD on importedinputs w

12、aivedGST+Deferred Duty payableon imported inputsPROCESSING IN BONDED WAREHOUSEIMPORTED INPUTS AND CAPTAL GOODSINPUT AND CAPTAL GOODS SOURCE FROM DTAEXPORT OFFINISHED GOODSDTA SALE OF FINISHED GOOD6Major SectorsHeavy electricalequipmentEarth moving and mining machineryMkt Size in 2020(USD Mn)AverageG

13、rowthPrintingmachineryPlant process equipmentTextile machineryMachine tools,dies,moulds25-306-83-42-32-3Tools:2-3Dies:2-35%12%1%3%5%Tools:20%Dies:3%7KeyStakeholdersDepartment of Heavy Industry,Ministry of Heavy Industry and Public EnterprisesEngineering Export Promotion CouncilIndian Machine Tool Ma

14、nufacturers Association Indian Printing Packaging and Allied MachineryManufacturers AssociationPlastic Machinery Manufacturers Association of IndiaTextile Machinery Manufacturers AssociationAgro&Food Processing Equipment;TechnologyProviders Association of IndiaIndian Construction Equipment Manufactu

15、rersAssociationIndian Electrical and Electronics ManufacturersAssociationIndustrialClusters8KOLKATA Mining metallurgical machineryCOIMBATORE Tools and dyes Textile machineryHYDERABAD Printing and packaging machineryCHENNAI Tools and dyes Machine toolsPUNE Tools and dyes Heavy electrical engineeringN

16、CR Tools and dyes Heavy electrical engineering Textile machinerySURAT Textile machineryBANGALORE-TUMKUR Machine ToolRecent InvestmentsSCHNEIDER ELECTRIC AND TEMASEKAcquired Larsen&Toubros(L&T)electrical and automationbusiness.SANYThe Indian arm of Beijing headquartered construction equipmentmaker SA

17、NY Group,planned to invest USD 142.49 Mn to expandits construction machinery production capacity to 25,000 units.BHELHas set up a Make in India(MII)Business Development Group vertical to identify manufacturing opportunities in India and workwith global Original Equipment Manufacturers for Make in In

18、dia,Make for the World.MOGLIXThe industrial goods supplier is expanding its operations to Goaand Assam.010203049 91011All information in this brochure was last updated on October,2022.investindiainvest-indiainvestindiaofficialInvestIndiaIPAPhone No:011 2304 8101 Email ID:capital.goodsinvestindia.org.in First Floor,Vigyan Bhawan Annexe,Maulana Azad Road,New Delhi-110011HOW WE HELP INVESTORS STAKEHOLDER MEETINGPOLICY ADVISORY/REPRESENTATIONREGULATORY CLEARANCE FACILITATIONSITE VISITSISSUE RESOLUTIONRESEARCH CONTENT PROVIDEDLOCATION ANALYSIS