Capital Goods Current Affairs - 2020
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
Tags: Business • Cabinet Decisions • Capital Goods • Economy • Government Policies
The Union Government has unveiled a National Capital Goods Policy 2016 to give an impetus to the capital goods sector and the Make in India initiative.
It was unveiled by Union Minister of Heavy Industry & Public Enterprise Anant Geet on the occasion of the Make in India Week held in Mumbai, Maharashtra.
This is for the first time, Union Government (Ministry of Heavy Industry & Public Enterprise) has framed such national policy for the capital goods sector.
Key features of Policy
- Increase exports of capital goods from the current 27% to 40 % of production.
- Increase share of domestic capital goods production in terms of demand from 60% to 80% in order to make India a net exporter of capital goods.
- Facilitate improvement in technology depth across sub-sectors, ensure mandatory standards, increase skill availability and promote growth and capacity building of MSMEs.
- Seeks to address some of the key issues including availability of finance, raw material, productivity, quality and environment friendly manufacturing practices, innovation and technology, creating domestic demand and promoting exports.
- Enhance Indian made capital goods export through a ‘Heavy Industry Export & Market Development Assistance Scheme (HIEMDA)’.
- Strengthening existing scheme of DHI (Department of Heavy Industry) on enhancement of competitiveness of Capital Goods sector by increasing budgetary allocation.
- Seeks to launch a Technology Development Fund (TDF), upgrade existing and setting up new testing & certification facility.
- It also seeks to make standards mandatory in order to reduce sub-standard machine imports and provide opportunity to local manufacturing units and launch scheme of skill development for Capital Goods sector.