The Government has unveiled the National Capital Goods Policy.

Main Objectives of the Policy

• Increasing production of capital goods from ~Rs. 230,000 Cr in 2014-15 to Rs. 750,000 Cr in 2025.
• Raising direct and indirect employment from the current 8.4 million to ~30 million.

The policy envisages increasing exports from the current 27% to 40% of production while increasing share of domestic production in India’s demand from 60% to 80%, thus making India a net exporter of capital goods. The policy also aims to facilitate improvement in technology depth across sub-sectors, increase skill availability, ensure mandatory standards and promote growth and capacity building of MSMEs.

Policy Developers

• “National Capital Goods Policy” is a unique Government led- industry driven manoeuvre for scripting a new growth narrative in the history of industrial development.
• The Department of Heavy Industry had set up a Joint Taskforce with Confederation of Indian industry (CII) as an attempt to ensure that the formulation of the Capital Goods Policy is done in the most democratic manner and the recommendations would carve out a roadmap for Capital Goods sector to become  a part of global value chains apart from mere supply chains.

Key policy recommendations

• Strengthening the existing scheme of the DHI on enhancement of competitiveness of Capital Goods Sector by increasing budgetary allocation for increasing scope to further boost global competitiveness in various sub sectors of CG.
• Enhancing the export of Indian made capital goods through  a ‘Heavy Industry Export & Market Development Assistance Scheme (HIEMDA)’.