Cabinet approves tiol Capital Goods Policy

New Delhi, May 25: The union cabinet on Wednesday approved tiol 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 percent to 80 percent 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 tiol 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 tiol Capital Goods Policy to Prime Minister rendra 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 sigl 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 fince, raw material, innovation and technology, productivity, quality and environment-friendly manufacturing practices, promoting exports and creating domestic demand,” the statement added. (IANS)