Inter-Ministerial Committee set up to strengthen Capital Goods Sector
On November 11, 2020, the Government of India set up an inter-ministerial committee to strengthen capital goods sectors. This will help India achieve its goal of becoming a 5 trillion USD economy.
The Government of India has set up a 22-member inter-ministerial committee to strengthen Capital Goods Sector. The committee will look into issues pertaining to Capital goods Sector. This includes global value chains, skill training, global standards, custom duties
Capital Goods Sector in India
The Capital Goods Sector of India holds its strong base in construction, engineering, infrastructure, consumer goods. The sector had an overall production of 13.6 billion USD in 2018-19. The Capital Goods Industry provides 1.4 direct employment opportunities and 7 million indirect employment opportunities.
Growth of Capital Goods Industry in India
India has introduced several market-oriented reforms such as “Power for All”. Also, India aims to add 93 GW by 2022. This will generate huge demand for power transmission and distribution equipment. By 2022, the Electrical Equipment industry is targeted to reach 100 billion USD. By 2022, the Transport and Distribution industry is to reach 75 billion USD.
Market Size of Capital Goods Sector in India
The capital goods in India has a market size of 43.2 billion USD. The industry is divided into 10 sub sectors. The sub sectors and their market contribution are as follows
- Heavy Electrical Equipment: 24.2 billion USD
- Earth Moving and Mining Machinery: 3.3 billion USD
- Process Plant Equipment: 3.7 billion USD
- Printing Machinery: 3.01 billion USD
- Food Processing Machinery: 2.4 billion USD
- Textile Machinery: 1.8 billion USD
- Dies, moulds and press tools: 2.3 billion USD
- Metallurgical Machinery: 0.4 billion USD
- Plastic Machinery: 0.5 billion USD
- Machine Tools: 1.4 billion USD
India has plans to build 200 low cost airports in next 20 years. Under “Housing for All”, India is to build 100 million houses by 2022.
All the above details are according to Invest India.
Category: Economy & Banking Current Affairs