National Capital goods policy unveiled

National Capital goods policy unveiled

Anant Geete says policy a gateway to endless opportunities for Capital goods; terms it as an initiative spearheaded by department of Heavy Industry

The Government has unveiled the National Capital Goods Policy. Addressing a seminar on the subject of ‘Capital Goods and Engineering: Realising the Make in India Vision, in Mumbai today, the Union Minister of Heavy Industry and Public Enterprises Shri Anant Ganga Ram Geete said that realising the strategic importance of Capital Goods and the pivotal role played by it  in the overall manufacturing, as the pillar of strength to the vision of “Make in India”, the government has now come out with this policy.  He also said this as an endeavour to drive growth for Capital Goods sector, as well  as a  part of Government’s commitment to help realise this vision of “Building India as the World class hub for Capital Goods”.  The Minister added  that this is a  first time ever policy of this sector, with a clear objective of increasing production of capital goods from ~Rs. 230,000 Cr in 2014-15 to Rs. 750,000 Cr 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.

“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 policy has been framed after extensive stakeholders’ consultations with industry, academia, different ministries etc.

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.