The Society of Indian Automobile Manufacturers (SIAM) has recently reported the growth in production for the automobile industry:

Segment of Capital Goods

Production (Rs. Cr.) and Annual percent Growth (%)

2013- 14

2014- 15

2015- 16

Machine Tools Ltd







Earthmoving & Mining Machinery







Heavy Electrical Equipment








         (Source:  Industry Association)


Automobiles                                                                                                 (No. in Thousand units)

2013- 14

2014- 15

2015- 16





No such targets were fixed for the Capital Goods Industry which includes sub- sectors like machine tools, earthmoving & mining machinery and heavy electrical equipment. No such targets were fixed for the automobile industry as well. However, the Government in consultation with the automobile industry envisions a growth path in the form of the Automobile Mission Plan. The first such plan was launched in 2006 for the period of 10 years. The performance of this Plan is given below:

  • India has attracted significant quantum of local and global automobile manufacturers (OEMs) as well as component manufacturers exceeding the target of Rs 157,500 crore.
  • While cumulative domestic sales volume of commercial vehicles, passenger vehicles and tractors have been achieved, 2 and 3 wheelers have fallen short of their targets.

The Government has launched a Scheme in November, 2014 for enhancement of e-competitiveness in the Indian Capital Goods Sector having infrastructural components like setting up of (1) Centre of Excellence for technology development, (2) Integrated Industrial Infrastructural facility i.e. industrial park (3) Common Engineering Facility Centre and (4) Test & Certification Centre. The Scheme also has provision for financial intervention by way of Technology Acquisition Fund Programme for acquisition/ transfer of technology.

Further, the Government has launched a National Capital Goods Policy in 2016 under ‘Make in India’ initiative with a view to realize the potential of domestic capital goods industry.

As far as automobile sector is concerned, the Government has taken a series of steps for the promotion of the industry, like launching of the FAME India Scheme for promotions of Electric and Hyrid vehicles and establishment of state-of-the-art vehicle testing centres under the NATRIP Project.

This information was given by the Minister of State in the Ministry of Heavy Industries and Public Enterprises Babul Supriyo in the Rajya Sabha.


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