Govt unveils policy for Capital Goods sector

Mumbai, Feb 16 (KNN) India's first ever policy for the capital goods sector has been announced today which aims to enhance the share of capital goods in total manufacturing activity from 12 per cent at present to 20 per cent by 2025.

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.

"Capital Goods” sector comprises of plant and machinery, equipment / accessories required for manufacture / production, either directly or indirectly, of goods or for rendering services, including those required for replacement, modernization, technological upgradation and expansion.

It also includes packaging machinery and equipment, refrigeration equipment, power generating sets, equipment and instruments for testing, research and development, quality and pollution control.

The capital goods sector contributes 12% to the total manufacturing activity (which is about 15% of the GDP). It is a large and diverse sector in India with a market size of Rs 2,50,000 Cr in 2013–14 and a domestic production of close to Rs 1,92,000 Cr.

The policy unveiled today envisages creation of 21 million additional jobs by 2025.

It also aims to increase direct domestic employment from the current 1.4 million to at least 5 million and indirect employment from the current 7 million to 25 million by 2025, thus providing additional employment to over 21 million people.

"The capital goods sector is currently going through many challenges and issues and to address those challenges, the government has launched the comprehensive policy document, the National Capital Goods Policy, today," Geete said at a Make in India Week seminar in Mumbai. (KNN Bureau)