A draft National Policy on Capital Goods has been prepared and put in public domain for comments/suggestions of stakeholders and general public. The Department of Heavy Industry, in active consultation with industry associations & bodies has drafted a National Policy on Capital Goods.  This is the first time that a policy on Capital Goods is being framed. This National Policy on Capital Goods is envisaged to unlock the potential for this promising sector and establish India as a global manufacturing powerhouse.

The policy seeks to raise India’s share of global exports in capital goods to 2.5% and increase the share of domestic production of capital goods from 56% to 80% by 2025. Capital goods account for a significant portion of India’s imports, adding up to nearly $20 billion. The policy aims to shift some of that production to India, raising share of capital goods in total manufacturing to 20% by 2025 from 12% now.

The capital goods sector contributed Rs 62,500 crore to the country’s exports in 2014-15. The growth rate of exports has been 20% per annum over the past five years, which has decelerated to 14.7% per annum in the last three years. However, India’s share in global exports of capital goods is still significantly sub-scale at 0.8% only.

It proposes an inter-ministerial committee coordinated by the ministry of heavy industries & public enterprises (HI&PE) to ensure coordination of efforts to achieve policy goals.