This policy looks after various aspects of the capital goods from promotion
to support staff to overall growth of the sector. Important aims of the national
capital goods policy are given below:
As you can see the national capital goods policy aims to achieve big things
by 2025. So this needs supporting structure also in place to get the desired
target. In order to achieve the above given objective following policy tools
will be used.
Creating an Eco-system for globally competitive
Capital Goods Sector: Long term strategy for the sector to be defined on
the basis of local demand opportunities. Modify public procurement policies
to give preferences to local manufacturers within WTO framework and also
technology, skills and industrial infrastructure. FTAs / PTAs with partner
countries should be re-negotiated further (wherever feasible) with a view to
providing equal playing field to local manufacturers.
Creation and Expansion of Market for Capital Goods
Sector: Close public–private collaboration is required to ensure that
the opportunities across the complete production value chain get captured.
Provide stable and investor friendly tax regime while actively addressing
the current inverted duty structure
Promotion of Exports: Introduce market
access incentive scheme for capital goods Provide incentives under export
promotion scheme such as Merchandise Exports from India Scheme (MEIS) &
Service Exports from India Scheme (SEIS). Open a focused line of credit for
capital goods exports in partnership with EXIM Bank of India
Human Resource Development: Work with Universities
& Institutions to promote skills, needed for capital goods sector. Further
institutional mechanism to multi-institutions rope in industry for
curriculum development and training. Facilitate opening of greater number of
training institutes to provide skills required for capital goods industry.
Long term, India to be made skill capital of the world.
Technology & IPR: To help implementing full
fledged scheme on "Enhancement of Competitiveness in the Indian capital
goods sector" through enabling policies for technology transfer,
up-gradation and innovation. Acquisition of critical technologies will
enable more appropriate product portfolios that would facilitate entry into
global markets. Incentivize private sector in order to increase R&D
Introduction of Mandatory Standards: Define
national policy to increase present 5% of product range coverage to at least
25% in next 5 years and 50% in 10 years, which are equivalent to
international standards. Safety, environment, quality based mandatory
standard may be made for all he products in next 5 years. Import of second
hand machinery is high in India; mandatory standards should be brought in
force to discourage this practice.
Focus on SME Development: Promote indigenization
with a specific focus on SMEs. Support and promote SME growth by supporting
their technology modernizations, skill development, product development and
export facilitations. To promote SMEs in the sector, introduce Interest
subvention scheme like TUFS which provides concessional rate of interest
Support Services: Build up data base of production
through suitable reporting system. Work on ITC(HS) codes with a view to
increase coverage of description of machinery.
Sub-sector specific strategies: THis policy will
never be successful if same policy is applied to all the sectors. Some
variations related to specific sectors should be there to make policy better
for the requirement of the specific sectors. Adjustments like Introduction
of minimum standards for equipment, esp on imported second-hand, refurbished
machinery in textile industries. Improving technology collaboration with
European manufacturers including schemes to promote technology transfer for
construction equipments etc. should be done to all the sectors.