Question

Union Cabinet approved National Capital Goods Policy 2016 with a vision to increase the share of capital goods contribution from present 12 to 20 percent of total manufacturing activity by 2025.Consider the following statements:

Which of the above statement(s) is/are NOT correct?

• A. Only 1 & 2
• B. Only 2 & 3
• C. Only 1 & 3
• D. None of the above

Answer 1

The correct option is D None of the above

The policy proposes a governance mechanism for smooth implementation and effectiveness of the policy. The mechanism will be in the form of inter-ministerial and inter-departmental committees at the highest level to ensure due consideration of the interests of all stakeholders.
Key features of Policy
Increasing Exports
The National Capital Goods Policy 2016 aims at increasing exports to 40 percent of production, from the current 27 percent.
Push to Domestic Production
The policy aims to increase the share or domestic production in the country’s demand to 80 percent from 60 per cent, potentially making India net exporter of capital goods.
Technological Improvement
The policy aims to facilitate improvement in technology depth across subsectors, increase skill availability, ensure mandatory standards and promote growth and capacity building of MSMEs.
HIEMDA Scheme
The policy seeks to enhance Indian made capital goods export through a ‘Heavy Industry Export & Market Development Assistance Scheme (HIEMDA)’.
Increased Budgetary Allocation
This includes strengthening existing scheme of DHI (Department of Heavy Industry) on enhancement of competitiveness of Capital Goods sector by increasing budgetary allocation.
Technology Development Fund
The policy advocates launching a Technology Development Fund under the public-private partnership (PPP) model to fund technology acquisition, transfer of technology, purchase or JPRs, designs and drawings as well as commercialization of such capital goods technologies.
Integration with subsectors
The policy looks to integrate key capital goods sub-sectors. It also seeks to make standards mandatory in order to reduce sub-standard machine imports and provide opportunity to local manufacturing units and launch scheme of skill development for Capital Goods sector.
Start-up Center
The policy also suggests creation of a ‘Start-up Center’ for capital goods sector’ to provide an array of technical, business and financial support sources and services to promising start-ups in manufacturing and services.
Standardization
The policy also calls for mandatory standardization, which includes defining minim urn acceptable standards for the industry and adoption of International Organization for Standardization norms.