(MENAFN- KNN India) New Delhi, Apr 18 (KNN) India is set to broaden the scope of its key Capital Goods Promotion Scheme, which has so far focused heavily on electrical components and automobile manufacturing.
The government plans to extend support to sectors like pharmaceuticals and textiles under this scheme, reported ET.
The move aims to provide a boost to capital goods manufacturing across a wider range of industries, stated a senior government official aware of the development.
In addition to conventional sectors, the scheme will also cover new-age technologies, such as those used for electric vehicles, batteries, and robotics, as well as semiconductor-related applications.
This aligns with India's Industry 4.0 plans and the push towards advanced manufacturing.
The Capital Goods Promotion Scheme was launched in November 2014 with an initial outlay of Rs 995.96 crore. Its second phase commenced in January 2022 with a budgetary allocation of Rs 975 crore and an industry contribution of Rs 232 crore.
The scheme is designed to bridge skill gaps, develop infrastructure, and address technology needs within the capital goods sector.
The capital goods industry plays a crucial role in India's economy, contributing around 12 per cent to the country's GDP and providing 5.5 million jobs.
Major segments within this sector include electrical equipment, process plant equipment, earth moving and construction machinery, machine tools, and textile machinery.
Officials cite representations from various sectors seeking inclusion in the Capital Goods Promotion Scheme as the driving force behind this expansion.
Currently, industries like mining, textiles, and pharmaceuticals approach their respective nodal ministries for support.
The government may also consider revising the National Capital Goods Policy 2016 to align with the expanded scope of the promotion scheme.
(KNN Bureau)
MENAFN18042024000155011030ID1108109643
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.