The Ministry of Heavy Industries concluded 2025 with a sustained focus on strengthening India’s capital goods and machine manufacturing ecosystem, alongside continued scale-up of electric vehicle and battery programmes, as multiple incentive and technology schemes recorded measurable outcomes during the year.
Implementation of the Scheme on Enhancement of Competitiveness in the Indian Capital Goods Sector – Phase II remained the central instrument for capital goods development. The scheme has a total financial outlay of INR 12.07 billion, including INR 9.75 billion in budgetary support and INR 2.32 billion in industry contribution, and is aimed at building domestic capabilities in advanced manufacturing technologies, machine tools, automation, testing and skilling. As of 2025, 29 projects with a total project cost of INR 8.91 billion and government support of INR 7.15 billion had been sanctioned.
These projects comprise seven Centres of Excellence, four Common Engineering Facility Centres, six testing and certification centres, nine industry accelerators for technology development and three projects for creation of qualification packs for skill levels 6 and above. Under the scheme, a Common Engineering Facility Centre established at the Welding Research Institute trained more than 9,000 personnel, while 58 qualification packs for high-end technologies were sanctioned, of which 48 were completed.
Technology outcomes reported under the capital goods schemes included development of digital manufacturing, automation, industrial internet of things, digital twin and smart sensing solutions by institutions such as CMTI and IIT Delhi. Across Phase I and Phase II of the capital goods scheme, technologies generated cumulative revenue of INR 3.09 billion, entered export markets including France, Belgium and Qatar, and resulted in 80 patent filings, including international patents, with 18 intellectual property rights granted. Five products were displayed at IMTEX 2025 and four products were launched at the Delhi Machine Tools Expo 2025.
Alongside capital goods, electric mobility and automotive manufacturing remained a major area of policy execution in 2025. In an official statement issued as part of its Year-End Review, the ministry said the Production Linked Incentive Scheme for the Automobile and Auto Components Industry, with a budgetary outlay of INR 259.38 billion, continued to drive investments in advanced automotive technology products. The scheme has approved 82 applicants with estimated investments of INR 425 billion, incremental sales of INR 2.315 trillion and employment potential of 148,000 over five years.
As of 30 September 2025, cumulative investment of INR 356.57 billion and cumulative determined sales of INR 328.79 billion had been achieved under the PLI–Auto scheme, with employment generation of 48,974. Incentive disbursements totalled INR 322 crore for the first performance year and INR 1,999.94 crore for the second performance year. By 31 December 2025, incentives had been extended to more than 1.36 million electric vehicles across two-wheelers, three-wheelers, four-wheelers and buses, with all incentivised products meeting a minimum domestic value addition of 50 percent.
Deployment of electric vehicles was supported through the PM E-DRIVE scheme, launched in September 2024 with an outlay of INR 109 billion and extended until 31 March 2028. As of 31 December 2025, subsidies amounting to INR 17.03 billion had been disbursed, supporting sales of 2.136 million electric vehicles, while a tender for 10,900 electric buses across five metropolitan cities was concluded during the year.
Battery manufacturing localisation progressed in parallel under the Production Linked Incentive scheme for Advanced Chemistry Cell battery storage, approved with an outlay of INR 181 billion to establish 50 GWh of domestic capacity. By October 2025, investments of INR 28.78 billion and employment of 1,118 had been reported, with pilot production underway at a giga-scale cell manufacturing facility.
The Ministry of Heavy Industries oversees policy and programme implementation across capital goods, heavy electricals, automobiles, auto components and manufacturing technology development, with 2025 marking continued execution across both clean mobility and industrial capability-building initiatives.
