§1How big it is
Engineering goods exports reported at USD 116.67 billion in 2024-25 (+6.74%), 26.67% of merchandise exports - EEPC compilation reported in news; not confirmed from a government release
Tribune India / ANI report on EEPC data (Apr 2025)
§2Ways to get started
- CNC job-shop machining for OEMs
- Sheet metal fabrication
- Fastener / turned-parts unit
- Pump and motor assembly
- Spare parts for agricultural machinery
§3Hubs and clusters
- Rajkot (Gujarat) - engines, castings, machine tools (well-known)
- Ludhiana (Punjab) - cycle parts, hand tools (well-known)
- Coimbatore (TN) - pumps and motors (well-known)
- Pune, Bengaluru - machine tools (well-known)
- Jalandhar - hand tools and sports goods (well-known) - none verified from an official list in this pass
§4Licences and registration
- BIS certification under QCOs for notified products (check BIS QCO list - covers many steel products, pumps, electrical items)
- SPCB consent - foundries, forging and electroplating are typically Orange/Red
- Factory licence; boiler / pressure vessel registration if used (Boilers Act)
- EEPC RCMC for exports
- Udyam Registration (MSME) - free, online, PAN + Aadhaar based
- GST registration (mandatory above turnover threshold or for inter-state supply / e-commerce sale)
- Shops & Establishment registration or Factory Licence (Factories Act / state rules) depending on size and power use
- Consent to Establish and Consent to Operate from the State Pollution Control Board - category (Red/Orange/Green/White) as per CPCB 2025 harmonised list; White category is exempt from consent
- IEC (Importer Exporter Code) from DGFT if you import or export
§5Regulators
- Department of Heavy Industries (capital goods)
- BIS (QCOs on many engineering items: pumps, valves, fasteners, steel products, electrical appliances)
- SPCB (foundries, electroplating are higher pollution categories)
§6Government help
- Scheme for Enhancement of Competitiveness in the Indian Capital Goods Sector (Department of Heavy Industries) - check current phase
- MSE-CDP common facility centres (tool rooms, foundry clusters)
- MSME Technology Centres (tool rooms)
- PLI - indirect only (white goods, auto components)
- Cross-sector schemes that also apply (detailed in the programmes file): Udyam benefits, PMEGP, PM Mudra Yojana, CGTMSE credit guarantee, Stand-Up India, MSE-CDP (cluster development), RAMP, MSME ZED and Lean certification, MSME Champions, TReDS, Startup India (SISFS seed fund, Fund of Funds, CGSS), RoDTEP, EPCG, Advance Authorisation, Districts as Export Hubs, ODOP (One District One Product)
§7For exports
- EEPC India - Engineering Export Promotion Council
§8Pros and cons
Merits
- Largest export category by EEPC data (low-confidence figure)
- Component supply to auto, rail, defence and infra OEMs gives repeat orders
- MSME tool rooms provide training and machining help
Demerits
- Working capital stretched by OEM payment terms (60-120 days common; MSMED Act 45-day rule not always followed)
- Steel price volatility
- Many QCOs require BIS licence per product