The government introduced a National Capital Goods Policy to spur capital goods sector and the Make in India initiative.
Anant Geete, Minister, Heavy Industry and Public Enterprise unveiled the policy during the Make in India Week programme.
The objective of the policy was to increase production of capital goods from Rs. 2.30 lakh crore in 2014-15 to Rs. 7.50 lakh crore in 2025 and raising direct and indirect employment from the current 8.4 million to 30 million.
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.
The policy also aims to facilitate improvement in technology depth across sub-sectors, increase skill availability, ensure mandatory standards and promote growth and capacity building of MSMEs.
The policy envisages making India a net exporter of capital goods and aims at facilitating improvement in technology across sub-sectors, increasing skill availability, ensuring mandatory standards and promoting growth and capacity building of MSMEs.
“National Capital Goods Policy” is a unique Government led- industry driven manoeuvre for scripting a new growth narrative in the history of industrial development.
The Department of Heavy Industry had set up a Joint Taskforce with Confederation of Indian industry (CII) as an attempt to ensure that the formulation of the Capital Goods Policy is done in the most democratic manner and the recommendations would carve out a roadmap for Capital Goods sector to become a part of global value chains apart from mere supply chains.
The aim of the policy is to create game changing strategies for the capital goods sector. Some of the key issues addressed include Availability of Finance, Raw Material, Innovation and Technology, Productivity, Quality and Environment Friendly Manufacturing Practices, Promoting Exports and Creating Domestic Demand.
Key policy recommendations include strengthening the existing scheme of the DHI on enhancement of competitiveness of Capital Goods Sector by increasing budgetary allocation for increasing scope to further boost global competitiveness in various sub sectors of CG.
The aim is to enhance the export of Indian made capital goods through a ‘Heavy Industry Export & Market Development Assistance Scheme (HIEMDA)’.
Launching a Technology Development Fund , upgrading the existing and setting up new testing & certification facilities, making standards mandatory in order to reduce sub-standard machine imports are other measures envisaged.
It also aims to provide opportunity to local manufacturing units by utilising their installed capacity and launching scheme of skill development for CG sector.