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Home » IAS Current Affairs » National Capital Goods Policy 2016 approved by Union Cabinet

National Capital Goods Policy 2016 approved by Union Cabinet

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The Union Cabinet on 25 May 2016 approved the National Capital Goods Policy 2016. This is first ever policy for Capital Goods sector with a clear objective of increasing production of capital goods from 2.3 lakh crore rupees in 2014-15 to 7.5 lakh crore rupees in 2025.

Features of National Capital Goods Policy 2016

Vision: To increase the share of capital goods contribution from present 12 to 20 percent of total manufacturing activity by 2025

Mission: To become one of the top capital goods producing nations of the world by raising the total production to over twice the current level

To raise exports to a significant level of at least 40 percent of total production and thus gain 2.5 percent share in global exports of capital goods

To improve technology depth in Indian capital goods from the current basic and intermediate levels to advanced levels

Objectives: Increase total production to achieve total production in excess of 5 lakh crore rupees by 2025 from the current 2.2 lakh crore rupees

To increase the share of domestic production in India's capital goods demand from 56 percent to 80 percent by 2025 and in the process improve domestic capacity utilization to 80-90 percent

To improve skill availability by training 50 lakhs people by 2025

To improve 'technology depth' in capital goods sub-sectors by increasing research intensity in India from 0.9 percent to at least 2.8 percent of GDP




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