Zee Media Bureau
New Delhi: The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Narendra Modi, has approved the scheme for enhancement of competitiveness of the capital goods Sector to boost the Indian economy.
This scheme, on its implementation, would attempt to make the Indian capital goods sector globally competitive.
The sub sectors of capital goods covered under the scheme are mainly for machine tools, textile machinery, construction and mining machinery, and process plant machinery.
The proposed scheme addresses the issue of technological depth creation in the capital goods sector, besides creating common industrial facility centres.
The scheme on enhancement of competitiveness in the Indian capital goods sector will be implemented in the 12th Plan period and spill over to the 13th Plan period with an estimated outlay of Rs 930.96 crore.
The gross budgetary support (GBS) from the government for the scheme would be Rs 581.22 crore and the balance Rs 349.74 crore would be contributed by the stakeholder industries.
The capital goods value added contributes a fairly constant proportion of 9-12 percent of the total manufacturing value added.
The capital goods sector determines global competitiveness of the manufacturing sector by being a vehicle of technology.
