Lok Sabha Question No. 389 (UNSTARRED), answered on 2015-12-01
Subject: National Capital Goods Policy
Ministry: HEAVY INDUSTRIES AND PUBLIC ENTERPRISES
Asked by: HEENA VIJAYKUMAR GAVIT, KAVITHA KALVAKUNTLA, ABHISHEK SINGH, T. RADHAKRISHNAN, JAYAKUMAR JAYAVARDHAN

## GOVERNMENT OF INDIA MINISTRY OF HEAVY INDUSTRIES AND PUBLIC ENTERPRISES DEPARTMENT OF HEAVY INDUSTRY

## LOK SABHA UNSTARRED QUESTION NO. 389 TO BE ANSWERED ON 01.12.2015

## National Capital Goods Policy

389. DR. HEENA VIJAYKUMAR GAVIT:

SHRIMATI KAVITHA KALVAKUNTLA:

SHRI ABHISHEK SINGH:

SHRI T. RADHAKRISHNAN:

DR. J. JAYAVARDHAN:

Will the Minister of HEAVY INDUSTRIES AND PUBLIC ENTERPRISES be pleased to state:

- (a)  whether  the  Government  has  announced  a  National  Capital  Goods  Policy  recently  if  so,  the details and the salient features thereof;
- (b) whether the Government has sought suggestions through a draft paper to frame policy on the capital goods industry to increase the sector's contributions from 12%  to 20%  in  total manufacturing  by  2025,  if  so,  the  details  and  the  response  thereof  and  the  reaction  of  the Government thereon;
- (c) whether India's share in global exports in the capital goods sector is far below that of China;
- (d)  if  so,  the  details  thereof  and  the  reasons  therefor  along  with  the  steps  taken  to  improve  the competitiveness among manufacturers by use of technology in this sector; and
- (e) the other steps taken/being taken by the Government to boost manufacturing of capital goods in the country and also increase India's share in global exports in the capital goods sector?

## ANSWER

## MINISTER  OF HEAVY INDUSTRIES AND PUBLIC ENTERPRISES (SHRI  ANANT G. GEETE)

- (a):  No, Madam.
- (b):  Yes,  Madam. A draft base paper on National Policy on Capital Goods was prepared by the Department of Heavy Industry (DHI)- Confederation of Indian Industry (CII) Joint Task Force on Capital  Goods  and  Engineering.  This  draft  paper  containing  all  details  has  been  posted  on  the Department's  website:    dhi.nic.in  under  the  Head:  What's  new  >  Draft  base  paper  for  National Policy on Capital Goods and Engineering.

http://www.dhi.nic.in/writereaddata/uploadfile/ Draft\_Base\_Paper.pdf

Several Ministries and stakeholders have submitted responses to the draft.

- (c): Yes, Madam

(d): Share of India in global export in Capital Goods was 0.8% whereas that of China is 15.5% in the year 2014.

(Source: EEPC/ CII).

A  Scheme  for  enhancement  of  competitiveness  in  the  Indian  Capital  Goods  Sector  has  been launched  by  DHI  which  envisages  a  number  of  steps  to  improve  competitiveness  including development  of  technology  through  interventions  like  setting  up  Centre  of  Excellence  for technology  development  and  financial  intervention  for  acquisition/  transfer  of  technology.  The Scheme also envisages setting up of Common Engineering Facility Centre,   Integrated Industrial Infrastructure  Facility  and  Test  &  Certification  Centre  for  extending  infrastructural  facility  to domestic  capital  goods  industry.  These  measures  are  expected  to  boost  competitiveness  of  the indigenous Capital Goods Industry in the global market. Details of the Scheme are at:  dhi.nic.in under the Head Schemes>  Capital Goods Scheme> Scheme Notification containing Guidelines. http://dhi.nic.in/writereaddata/

Notification\_HE\_and\_MT\_141114.pdf

(e):  The  Department  receives  pre  budget  memoranda  from  different  Industry  Associations highlighting issues/ demands of respective sub sectors of Capital Goods Industry. The issues are examined  by  DHI  and  if  found  justified,  are  taken  up  with  the  Ministry  of  Finance.  The Department also takes up issues with the Department of Commerce where industry reports adverse impact  on  domestic  capital  goods  industry  due  to  Preferential  Trade  Agreement(s)/  Free  Trade Agreement(s).  Apart  from  the  above,  Development  Councils  constituted  for  four  sub  sectors  of Capital Goods Industry i.e. Machine Tools Industry, Textile Machinery  Industry, Heavy Electrical Industry  and  Earthmoving,  Construction  and  Mining  Machinery  provide    valuable  platform    for stakeholders  such  as  Government  Departments,  Industry  Association,  Users  and  Academia  to propose steps to develop the respective sub- sectors of domestic Capital Goods Industry to boost manufacturing and increase India's share in the global exports in the Capital Goods Sector.

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