Ahead of Budget 2016, first-ever policy for capital goods introduced

In the ongoing “Make In India” week, the government has introduced a National Capital Goods Policy to encourage the capital goods sector and ensure its active participation in the Make in India initiative.

The policy was unveiled by Anant Geete, the Union Cabinet Minister for Heavy Industries and Public Sector Enterprises. Geete said that the policy was a part of the government’s plans to turn India into a world class hub for capital goods.

The policy has been launched with an objective of increasing production of capital goods to Rs. 7.50 lakh crore by 2025. In 2014-15, the production was Rs. 2.30 lakh crore. It also aims to raise direct and indirect employment in the capital goods sector from the current 8.4 million to 30 million.

With the launch of the policy and its correct implementation, India can become a net exporter of capital goods and with improved technology across sub-sectors. It will also increase the skill availability, while ensuring mandatory standards and promoting growth and capacity building of MSMEs.

Mr. Geete was addressing a seminar on capital goods sector which was organized by the Confederation of Indian Industry (CII) in partnership with Department of Industrial Policy and Promotion (DIPP) and the Government of Maharashtra.

The policy recommends strengthening DHI’s existing scheme on enhancement of competitiveness of capital goods sector; this would be done by increasing the budgetary allocation and scope of the scheme which would further enhance the global competitiveness in various sub sectors of the capital goods industry.

Another scheme called Heavy Industry Export and Market Development Assistance Scheme (HIEMDA) would be launched for increasing the export of Indian made capital goods.

"The capital goods sector is currently going through many challenges and issues and to address those challenges, the government has launched the comprehensive policy document, the National Capital Goods Policy, today," Mr Geete addressed the reporters at the 'Make in India Week' seminar yesterday.

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