Heavy Industries Sector Performance And Policy Measures

13 Feb 2026 CW Team

Production, sales and exports for January to December 2025 were reported in million units: passenger vehicles production 5.38 mn, sales 4.49 mn and exports 0.86 mn; commercial vehicles production 1.11 mn, sales 1.03 mn and exports 0.09 mn; three wheeler production 1.22 mn, sales 0.79 mn and exports 0.43 mn; two wheeler production 25.5 mn, sales 20.5 mn and exports 4.94 mn. The presentation noted these flows as indicators of domestic demand and external market engagement.

The capital goods industry was assessed to contribute about 1.9 per cent of gross domestic product and to underpin domestic manufacturing capability. Production, import and export data for 2024–25 were provided in Rs crore and converted into million (mn) for clarity, with machine tools production Rs 142,860 mn, dies and moulds Rs 184,000 mn and earthmoving and mining machinery Rs 807,500 mn.

The ministry outlined schemes to promote domestic manufacturing and technological upgradation, noting the Production Linked Incentive scheme for automobile and auto components with an outlay of Rs 259,380 mn to incentivise advanced technologies with minimum 50 per cent domestic value addition, a PLI for advanced chemistry cell batteries of Rs 181,000 mn to support domestic manufacturing ecosystem for 50 GWh and the PM EDRIVE scheme with Rs 109,000 mn for electric mobility from 1 April 2024 to 31 March 2028. The phase two capital goods competitiveness scheme was cited with 29 sanctioned projects to support technology, testing and skilling. The information was given by the Minister of State for Heavy Industries in a written reply to the Lok Sabha and underlined intent to bolster manufacturing and skills across the heavy industries ecosystem.

As per information from the Society of Indian Automobile Manufacturers, the automobile sector accounts for 15 per cent of the country's GST revenue collections and supports 30 million (mn) jobs across the automotive value chain, including 4.2 mn direct and 26.5 mn indirect jobs. The ministry presented these figures in a status update on the heavy industries sector. The assessment described the sector as central to manufacturing growth and revenue. Production, sales and exports for January to December 2025 were reported in million units: passenger vehicles production 5.38 mn, sales 4.49 mn and exports 0.86 mn; commercial vehicles production 1.11 mn, sales 1.03 mn and exports 0.09 mn; three wheeler production 1.22 mn, sales 0.79 mn and exports 0.43 mn; two wheeler production 25.5 mn, sales 20.5 mn and exports 4.94 mn. The presentation noted these flows as indicators of domestic demand and external market engagement. The capital goods industry was assessed to contribute about 1.9 per cent of gross domestic product and to underpin domestic manufacturing capability. Production, import and export data for 2024–25 were provided in Rs crore and converted into million (mn) for clarity, with machine tools production Rs 142,860 mn, dies and moulds Rs 184,000 mn and earthmoving and mining machinery Rs 807,500 mn. The ministry outlined schemes to promote domestic manufacturing and technological upgradation, noting the Production Linked Incentive scheme for automobile and auto components with an outlay of Rs 259,380 mn to incentivise advanced technologies with minimum 50 per cent domestic value addition, a PLI for advanced chemistry cell batteries of Rs 181,000 mn to support domestic manufacturing ecosystem for 50 GWh and the PM EDRIVE scheme with Rs 109,000 mn for electric mobility from 1 April 2024 to 31 March 2028. The phase two capital goods competitiveness scheme was cited with 29 sanctioned projects to support technology, testing and skilling. The information was given by the Minister of State for Heavy Industries in a written reply to the Lok Sabha and underlined intent to bolster manufacturing and skills across the heavy industries ecosystem.

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