Newsbytes
  • India
  • Business
  • World
  • Politics
  • Sports
  • Technology
  • Entertainment
  • Auto
  • Lifestyle
  • Inspirational
  • Career
  • Bengaluru
  • Delhi
  • Mumbai
  • Videos
  • Visual Stories
  • Reviews
  • Phone Reviews
  • Fitness Bands Reviews
  • Speakers Reviews
  • Find Cricket Statistics
Hindi
More
In the news
Twitter
Cryptocurrency
Sensex
Inflation
Stock Market
Newsbytes
Hindi
Newsbytes
User Placeholder

Hi,

Logout


India
Business
World
Politics
Sports
Technology
Entertainment
Auto
Lifestyle
Inspirational
Career
Bengaluru
Delhi
Mumbai
Videos
Visual Stories
Reviews
Phone Reviews
Fitness Bands Reviews
Speakers Reviews
Find Cricket Statistics

More Links
  • Videos

Download Android App

Follow us on
  • Facebook
  • Twitter
  • Linkedin
  • Youtube
 
Home / News / Business News / Draft of National Capital Goods Policy is ready
Business

Draft of National Capital Goods Policy is ready

Draft of National Capital Goods Policy is ready
Written by Shiladitya Ray
Oct 24, 2015, 08:59 pm 3 min read
Draft of National Capital Goods Policy is ready

The capital goods industry is set to receive a boost as the Indian government released a draft of its National Capital Goods Policy. The policy aims to double India's production of capital goods from Rs.2.2 trillion to over Rs.5 trillion by 2025, and create 3.5 million jobs. The last date for sharing views and comments on the draft policy is 31 October 2015.

Roadmap
Joint Task Force set up

A "Joint Task Force" was set up in mid-2015 between the Department of Heavy Industry (DHI) and Confederation of Indian Industry (CII) to formulate the National Capital Goods Policy. It would address issues faced by the capital goods sector to evolve a roadmap to realize the potential of domestically manufactured capital goods. Specialized sub-sector strategies will also be crucial in providing focus and direction.

Do you know?
Capital Goods sector and growth

A growth rate of 16.8% per annum in production of capital goods in the 12th Five Year Plan (2012-2017) was the target of the former Planning Commission. However, the sector's compounded annual growth rate has been a disappointing 0.3%.

Do you know?
India's first policy on capital goods

The National Capital Goods Policy is the first policy on capital goods in India. It is crucial for Modi's "Make in India" vision as the capital goods sector has a multiplier effect on other sectors in the economy.

Production
The new policy's effect on production

The National Capital Goods Policy will attempt to bolster India's production of capital goods. It aims to improve India's domestic capacity utilization to 80-90% by increasing the share of domestic production in India's capital goods demand from 56% to 80% by 2025. It also aims to improve the share of capital goods from 12% to 20% in total value manufacturing by 2025.

Do you know?
Comparison of India's share in global exports

India has a meagre share in the global exports of capital goods. Depending on the sub-sector, India's contribution is roughly between 0.1%-0.6%. In comparison, countries like China, Germany, Japan contribute 7.7%-16.3% in global exports depending on the sub-sector.

Trade
The policy's impact on exports and imports

India's capital goods sector contributed Rs.625 billion to the country's exports in 2014-2015. The new policy aims to increase that to Rs.2 trillion by 2025, which will also see India's share in global exports of capital goods increase from 0.6% to 2.5%. An increase in the domestic production of capital goods will bring down India's annual expense of $20 billion for capital goods imports.

Taxation
Tax incentives under the National Capital Goods Policy

The National Capital Goods Policy will also seek to encourage foreign direct investment (FDI) in high technology manufacturing on a long term basis. They plan to give out tax incentives on capital investments from 15%-25%. Micro, small and medium enterprises (MSMEs) will be supported by an advisory group, interest subvention schemes like Technology Upgradation Fund Scheme (TUFS), and concessional rates of interest at 2%-4%.

Share this timeline
Facebook
Whatsapp
Twitter
Linkedin
Shiladitya Ray
Shiladitya Ray
Mail
Budding social scientist with a keen interest in social studies of science and the sociology of knowledge. Cinephile. Liverpudlian. Metalhead.
Latest
Latest
New-generation Toyota Innova to debut in India around Diwali
New-generation Toyota Innova to debut in India around Diwali Auto
5 famous Bollywood actors who have faced financial crisis
5 famous Bollywood actors who have faced financial crisis Entertainment
World Hypertension Day 2022: Definition, types, and prevention
World Hypertension Day 2022: Definition, types, and prevention Lifestyle
5 underrated romantic comedies to watch on Netflix
5 underrated romantic comedies to watch on Netflix Entertainment
OPPO Reno8 series to be launched on May 23
OPPO Reno8 series to be launched on May 23 Technology
Next News Article
Next News Article

Love Business news?

Subscribe to stay updated.

Business Thumbnail
India News Business News World News Politics News Sports News Technology News Entertainment News Auto News Lifestyle News Inspirational News
Career News Bengaluru News Delhi News Mumbai News Mukesh Ambani Indian Premier League (IPL) Karnataka Samsung Xiaomi West Bengal
Bihar Virat Kohli Rohit Sharma Haryana Narendra Modi Arvind Kejriwal Tamil Nadu Gujarat Yogi Adityanath YouTube
Instagram Hollywood News Uttar Pradesh Kerala Netflix Bollywood News Mamata Banerjee Maruti Suzuki Rahul Gandhi Elon Musk
Shah Rukh Khan Chelsea FC OPPO Akhilesh Yadav Indian Cricket Team Apple Manchester United Salman Khan Cryptocurrency OnePlus
Amitabh Bachchan ICC Women's World Cup Vivo India vs Sri Lanka
About Us Privacy Policy Terms & Conditions Contact Us Ethical Conduct Grievance Redressal News News Archive Topics Archive IPL 2022 Schedule IPL 2022 Points Table Find Cricket Statistics
Follow us on
Facebook Twitter Linkedin Youtube
All rights reserved © NewsBytes 2022