Union Cabinet approves National Capital Goods Policy 2016
The Union Cabinet has given its approval for National Capital Goods Policy 2016 to give an impetus to the capital goods sector and the Make in India initiative.
This is first ever policy for Capital Goods sector framed by the Union Government (Ministry of Heavy Industry & Public Enterprise).
Key features of Policy
- Objectives: (i) Increase production of capital goods from 2,30,000 crore rupees in 2014-15 to 7,50,000 crore rupees in 2025. (ii) Raise direct and indirect employment from the current 8.4 million to 30 million. (iii) Increase exports from the current 27% to 40% of production. (iv) Increase the share of domestic production in India’s demand from 60% to 80% to make India a net exporter of capital goods.
- Aim of Policy: (i) Facilitate improvement in technology depth across sub-sectors, (ii) Ensure mandatory standards, (iii) Increase skill availability and promote growth and (iv) Capacity building of MSMEs.
- Help in realising the vision of ‘Building India as the World class hub for Capital Goods’ and also play a pivotal role in overall manufacturing as the pillar of strength to the vision of ‘Make in India’.
- The Department of Heavy Industry (DHI) will meet the objectives of the policy 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 DHI to the Prime Minister in the ‘Make in India’ workshop held in December, 2014. It has been framed and finalized after extensive stakeholder consultations with industry, academia, different ministries etc.
It has been framed to create game changing strategies for the capital goods sector by addressing some of the key issues. It includes availability of finance, innovation and technology, raw material, productivity, quality and environment friendly manufacturing practices, creating domestic demand and promoting exports.
For more details: National Capital Goods Policy 2016
Month: Current Affairs - May, 2016