 "Cabinet clears National Capital Goods Policy")
The Cabinet yesterday gave its approval for National Capital Goods Policy, which aims to increase production of capital goods from Rs 230,000 crore in 2014-15 to Rs 750,000 crore in 2025 and raise direct & indirect employment from the current 8.4 million to 30 million.
Welcoming the Cabinet decision, Chandrajit Banerjee, director general, CII, said, “The policy is a first for the Indian capital goods sector and can be expected to drive growth in manufacturing and enable ‘Make in India’. The policy truly has the potential to script a new growth narrative in the history of India’s industrial development. The policy’s thrust on demand creation, technology depth and exports will go a long way to address the challenges and issues that the sector is currently going through.”
The policy envisages increasing exports from the current 27 percent to 40 percent of production. It will increase the share of domestic production in India’s demand from 60 percent to 80 percent 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 idea of a ‘National Capital Goods Policy’ was first presented by the Department of Heavy Industry to the Prime Minister in the ‘Make in India’ workshop held in December, 2014. The aim of the policy is 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.
Actualisation of these key focus areas is expected to align efforts towards development of capital goods sector and hence contribute to India’s manufacturing growth story.
Welcoming the Cabinet decision, Chandrajit Banerjee, director general, CII, said, “The policy is a first for the Indian capital goods sector and can be expected to drive growth in manufacturing and enable ‘Make in India’. The policy truly has the potential to script a new growth narrative in the history of India’s industrial development. The policy’s thrust on demand creation, technology depth and exports will go a long way to address the challenges and issues that the sector is currently going through.”
The policy envisages increasing exports from the current 27 percent to 40 percent of production. It will increase the share of domestic production in India’s demand from 60 percent to 80 percent 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.
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The objectives of the policy will be met by the Department of Heavy Industry in a time bound manner through obtaining approval for schemes as per the roadmap of policy interventions.
The idea of a ‘National Capital Goods Policy’ was first presented by the Department of Heavy Industry to the Prime Minister in the ‘Make in India’ workshop held in December, 2014. The aim of the policy is 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.
Actualisation of these key focus areas is expected to align efforts towards development of capital goods sector and hence contribute to India’s manufacturing growth story.