Govt approves Capital Goods Policy, to create 2 crore jobs

Sanjeev Sharma

Tribune News Service

New Delhi, May 25

In a push for the ‘Make in India’ programme, the Cabinet today approved a national policy on capital goods or machinery and equipment which aims at creating more than 2 crore new jobs and tripling the production of capital goods to Rs 7.5 lakh crore by 2025.

In a boost for urea production in the eastern region, the Cabinet has waived loans worth more than Rs 9,079 crore owed by Hindustan Fertilizer Corporation Ltd as part of a financial restructuring package.

This is the first-ever policy for capital goods sector with the objective of increasing production of capital goods from Rs 2.3 lakh crore in 2014-15 to Rs 7.5 lakh crore in 2025 and raising direct and indirect employment from the current 8.4 million to 30 million.

An official statement said 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’.

The policy envisages increasing exports from the current 27% to 40% of production. It will increase the share of domestic production in India’s demand from 60% to 80% thus making India a net exporter of capital goods.

Some of the key issues addressed in the policy include availability of finance, raw material, innovation and technology, productivity, quality and environment friendly manufacturing practices, promoting exports and creating domestic demand.

Harshavardhan Neotia, president, FICCI, said, “India has the potential to be the net exporter of capital goods as against the net importer currently. National Capital Goods Policy is definitely the need of the hour, which will provide the much-needed impetus to the sector and will go a long way in achieving the objectives of Make in India”.