 "National Capital Goods Policy aims for Rs 7.5 lakh cr turnover in 2025")
The National Capital Goods Policy (NCGP), which was unveiled by Anant Geete (Minister for Heavy Industry & Public Enterprise) on February 15, 2016 during Make In India Week, aims to create an industry worth of Rs 7.5 lakh crore in 2015. “The clear objective of the National Capital Goods Policy is of increasing production of capital goods from Rs 230,000 crore in 2014-15 to Rs 750,000 crore in 2025 and raising direct and indirect employment from the current 8.4 million to approximately 30 million,” said Geete.
The capital goods sector is currently facing many issues and to address those challenges, the Government launched the comprehensive policy for the first time for this sector. 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.
Realising the strategic importance of capital goods in overall manufacturing sector and the role that it plays in achieving the objectives of Make in India campaign, the policy aims to facilitate improvement in technology depth across sub-sectors, increase skill availability, ensure mandatory standards and promote growth & capacity building of MSMEs. NCGP envisages increasing exports from the current 27 percent to 40 percent of production while increasing share of domestic production in India's demand from 60 percent to 80 percent, thus making India a net exporter of capital goods.
According to Vipin Sondhi, chairman, CII national committee on capital goods and engineering; and managing director & CEO, JCB India Limited, the National Capital Good Policy will act as an engine to promote the sector in the global market and help in placing the sector on a high growth trajectory.
Sumit Mazumder, president, Confederation of Indian Industry (CII), said, “The government has taken unprecedented and innovative steps with multi-dimensional endeavour to boost manufacturing, such as targeting skill development, FDI, R&D and most significantly ease of doing business. Industry is greatly inspired by the many steps taken under the Make in India campaign.”
The capital goods sector is currently facing many issues and to address those challenges, the Government launched the comprehensive policy for the first time for this sector. 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.
Realising the strategic importance of capital goods in overall manufacturing sector and the role that it plays in achieving the objectives of Make in India campaign, the policy aims to facilitate improvement in technology depth across sub-sectors, increase skill availability, ensure mandatory standards and promote growth & capacity building of MSMEs. NCGP envisages increasing exports from the current 27 percent to 40 percent of production while increasing share of domestic production in India's demand from 60 percent to 80 percent, thus making India a net exporter of capital goods.
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Key policy recommendations include strengthening the existing scheme of the Department of Heavy Industry (DHI) on enhancement of competitiveness of capital goods sector by increasing budgetary allocation and increasing its scope to further boost global competitiveness in various sub sectors of CG, enhancing the export of Indian made capital goods through a 'Heavy Industry Export & Market Development Assistance Scheme (HIEMDA)', launching a technology development fund, upgrading existing and setting up new testing & certification facility, making standards mandatory in order to reduce sub-standard machine imports and at the same time providing opportunity to local manufacturing units by utilising their installed capacity and launching scheme of skill development for CG sector.
According to Vipin Sondhi, chairman, CII national committee on capital goods and engineering; and managing director & CEO, JCB India Limited, the National Capital Good Policy will act as an engine to promote the sector in the global market and help in placing the sector on a high growth trajectory.
Sumit Mazumder, president, Confederation of Indian Industry (CII), said, “The government has taken unprecedented and innovative steps with multi-dimensional endeavour to boost manufacturing, such as targeting skill development, FDI, R&D and most significantly ease of doing business. Industry is greatly inspired by the many steps taken under the Make in India campaign.”