Lok Sabha Question No. 3798 (UNSTARRED), answered on 2016-08-09
Subject: Growth of Capital Goods Sector
Ministry: HEAVY INDUSTRIES AND PUBLIC ENTERPRISES
Asked by: PR. SENTHILNATHAN, V. SATHYABAMA

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

## LOK SABHA UNSTARRED QUESTION NO.3798 TO BE ANSWERED ON 09.08.2016

## Growth of Capital Goods Sector

## 3798.   SHRI PR. SENTHIL NATHAN: SHRIMATI V. SATHYA BAMA:

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

- (a)  the  various  steps  taken  by  the  Government  to  develop  industrial  points  and  increase  the  growth  of capital goods sector in the country;

(b)  whether  the  Committee  on  Commerce  and  Industry  has  pointed  out  that  contraction  in  growth  of capital goods sector is a cause of concern;

(c) if so, the details thereof and the reasons therefor; and

(d) the remedial steps taken by the Government to address this issue urgently to put India on the sustained industrial growth path?

## ANSWER MINISTER  OF  STATE IN THE MINISTRY OF  HEAVY INDUSTRIES AND PUBLIC ENTERPRISES (SHRI  BABUL SUPRIYO)

(a):  A  scheme  on  'Enhancement  of  Competitiveness  in  the  Indian  Capital  Goods  Sector'  has  been notified on  5.9.2014  that   aims  to  make  Indian  capital  goods  industry  globally  competitive  by strengthening  technology  development,  providing  common  manufacturing  infrastructure  and  extending financial assistance for technology acquisition. The Scheme envisages Government Budgetary Support of Rs.581.22 crore and Industry contribution of Rs.349.74 crore.  The Scheme has components consisting of infrastructural  interventions  like  setting  up  Centers  of  Excellence  (CoE) for Technology  Development, Integrated Industrial Infrastructure Facility Centre, Common Engineering Facility Centers and Test and Certification Centre. The Scheme also has a component for    financial intervention by way of Technology Acquisition Fund Programme for acquisition of technology.  These interventions will result in capacity building in technology in Capital Goods Sector. Detailed information on the Scheme is available at the website of the Department of Heavy Industry (dhi.nic.in).

A National Policy on Capital Goods Sector has been approved by the Cabinet on 25.5.2016. The Policy has been formulated after extensive consultation with the concerned Ministries/ Departments, Industry, User Sectors at both regional and national level. The Policy envisages making India one of the top capital goods producing nations of the world by increasing production, raising exports to be a net exporter of capital goods  and by improving  technology depth to  advanced  level.  The  Policy  recommends interventions    for    increasing  export  of  Indian  made  capital  goods,  enhancing  technology  depth, developing skill in capital goods sector, incentivizing modernization for Small and Medium Enterprises and increasing their competitiveness through cluster approach and mandatory standardization. A soft copy of the Policy is available at the website of the Department of Heavy Industry (dhi.nic.in).

(b)  to  (d):  No  recommendation  has  been  received  from  the  referred  Committee.  However,  Department Related Parliamentary Standing Committee on Industry has raised concern over the depressed figures in manufacturing  and  Index  of  Industrial  Production.  Capital  Goods  Policy  apart    from  the  scheme  as mentioned in reply to Part (a) of the Question above, envisages different interventions by Government to further the goal of development and growth of domestic Capital Goods Sector.

**********