Union Cabinet clears the Capital Goods Policy

New Delhi, Mar 23 (KNN) The Union Cabinet today cleared the capital goods policy to increase domestic production of the capital goods whose demand is currently met majorly through imports.

Capital goods are machines and tools used in the production of other goods.

Around 40-45 per cent demand for capital goods, which are used by manufacturers, is met by imports, which is pegged at around  dollar 20 billion annually.

India is a big importer of capital goods from China.

The objective of the policy is to more than triple domestic production of capital goods - from Rs 2.30 lakh crore in 2014-15 to Rs 7.5 lakh crore by 2025.

The National Capital Goods Policy was drafted by joint task force of Confederation of Indian Industries and Department of Heavy Industries. (KNN Bureau)