The union cabinet on Wednesday approved National Capital Goods Policy aimed at increasing capital goods production from the current value of Rs.2,30,000 crore to Rs.7,50,000 crore by 2025.
"The policy envisages increasing exports from the current 27 percent to 40 percent of production. It will increase the share of domestic production in India's demand from 60% to 80% thus making India a net exporter of capital goods," said an official statement.
Also with an aim to improve technology depth across sub-sectors, increase skill availability, ensure mandatory standards and promote growth and capacity building of MSME, the National Capital Goods Policy envisages to raise direct and indirect employment from 8.4 to 30 million.
"The policy will help in realising the vision of building India as the world-class hub for capital goods. It will also play a pivotal role in overall manufacturing as the pillar of strength to the vision of 'Make in India'," said the statement.
The Department of Heavy Industry mooted the idea of National Capital Goods Policy to Prime Minister Narendra Modi during a 'Make in India' workshop in December 2014.
Likewise, the same department will meet the objectives of the approved policy in a time-bound manner, procuring the green signal for schemes according to the roadmap of policy interventions, the statement said.
"The aim of the policy is to create game-changing strategies for the capital goods sector. Some of the key issues addressed include availability of finance, raw material, innovation and technology, productivity, quality and environment-friendly manufacturing practices, promoting exports and creating domestic demand," the statement added.
Reacting to the development, FICCI president Harshavardhan Neotia said: "India has the potential to be the net exporter of capital goods as against the net importer currently. National Capital Goods Policy is definitely the need of the hour."
He added that the National Capital Goods Policy will propel the capital goods sector and go a long way in achieving the vision of 'Make in India'.
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.