National Capital Goods policy

The Union cabinet has approved the National Capital Goods policy, which is likely to create 30 million jobs and raise production to Rs 7.5 lakh crore from the current Rs 2.3 lakh crore.

Details:

• The policy envisages increasing exports to 40% of production from the current 27%. It will increase the share of domestic production in India’s demand from 60% to 80%, making India a net exporter of capital goods.
• It 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.
• The policy will help in realising the vision of ‘Building India as the World class hub for Capital Goods’.
• The objectives of the policy will be met by the Department of Heavy Industry in a time bound manner through obtaining approval for schemes as per the roadmap of policy interventions.
• 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.

Background:

The idea of a National Capital Goods Policy was first presented by the department of heavy industry to the PM in the ‘Make in India’ workshop held in December, 2014.