The Union Cabinet has approved the national capital goods policy. The government believes implementation of the capital goods policy is critical and needed to give a boost to the sector and the ‘Make in India‘ initiative.

• The government had unveiled the National Capital Goods Policy in February. This is the first time such a policy has been framed for the sector.
• The Cabinet has also green flagged the doubling of two rail lines in Bihar and Jharkhand and approved incentives for rural housing.
• In particular, the policy will make sure the country utilizes the capital goods that already exist and cut down on imports, he says.
• To give a rough idea, the capacity utilization for the industry as a whole, he says, would be between 45 percent and 70 percent, adding, Thermax operated at a capacity level of 50 percent-60 percent.
• Indian companies will find themselves exporting capital goods into countries where there is a trade deficit.
• Long-term loans will be made available to these companies through the likes of EXIM bank.
• One can see India offering sops to Indian companies wanting to export more in the manner of countries like China and Japan, says Unnikrishnan.