The National Capital Goods Policy is expected to add production of capital goods more than three times by 2025 and increase exports up to 40% of production
The Dollar Business Bureau
The government has unveiled the National Capital Goods Policy which is expected to add production of capital goods more than three times by 2025 and increase exports from the current 27% of production to 40%, making India a net exporter of capital goods.
This was an endeavour by the Indian Govt to drive growth for capital goods sector, as well as stick to its commitment of realizing the vision to build India as a world class hub for capital goods, Union Minister of Heavy Industry and Public Enterprises Anant Geete said while announcing the policy at the ongoing Make in India Week in Mumbai.
Addressing a seminar on ‘Capital Goods and Engineering: Realising the Make in India Vision’, the minister said that the government has realised the strategic importance of capital goods in overall manufacturing.
The new policy is aimed at increasing the production of capital goods to Rs.750,000 crore in 2025 from the level of Rs. 230,000 crore produced in 2014-15. The Government also aims to increase direct and indirect employment from the current 8.4 million to about 30 million in the sector.
“The policy envisages increasing exports from the current 27% to 40% of production while increasing share of domestic production in India's demand from 60% to 80%, thus making India a net exporter of capital goods,” a government statement said.
The move is expected to enhance the export of Indian made capital goods through a Heavy Industry Export and Market Development Assistance (HIEMDA) scheme.
“Launching a technology development fund, upgrading the existing and setting up new testing and certification facilities, making standards mandatory in order to reduce sub-standard machine imports are other measures envisaged,” the statement said.
Besides, the policy will also facilitate technology upgradation across sub-sectors, enhance manufacturing skill, ensure quality and actively encourage growth and the scope of building of MSMEs.
Earlier, the Department of Heavy Industry had set up a joint taskforce with the Confederation of Indian Industry (CII) to chalk out a roadmap for the capital goods sector so as to make it a part of the global value chains.
As per the recommendations of the taskforce, the policy has addressed key issues such as availability of finance, raw material, innovation and technology, productivity, quality and environment friendly manufacturing practices, promoting exports and creating domestic demand.
It will also provide boost to the local manufacturing hubs by making use of their installed capacity and launching schemes for skill development.
The move is expected to enhance the exports of Indian made capital goods through a Heavy Industry Export and Market Development Assistance (HIEMDA) scheme
February 16, 2016 | 04:30pm IST