The Department of Heavy Industry, in active consultation with industry associations & bodies, has put out a National Policy on capital goods with an aim to give a fillip to Prime Minister Narendra Modi's pet project, 'Make in India' and increase the share of capital goods contribution from present 12 percent to 20 percent of total manufacturing activity by 2025.
This is the first time that a policy on capital goods is being framed. The draft policy aims to increase the share of domestic production in India's capital goods demand to 80 percent from 56 percent by 2025 and, in the process, improve domestic capacity utilization to 80-90 percent. The policy also aims to create 3.5 million more jobs by 2025.
The capital goods sector has multiplier effect and has bearing on the growth of the user industries. The draft policy, which has been put on public domain for seeking comments, views and suggestions of stakeholders and public in general, is envisaged to unlock the potential for this promising sector and establish India as a global manufacturing powerhouse. The Department has sought comments on the draft policy by October 31.
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