News:Ministry of Heavy Industries and Public Enterprises is implementing the scheme for Enhancement of Competitiveness in the Indian Capital Goods Sector.
About the scheme:
- Department of Heavy Industry in the Ministry of Heavy Industries and Public Enterprises had launched the scheme for Enhancement of Competitiveness in the Indian Capital Goods Sector in 2014.
- The scheme is focused on making the Indian capital goods sector globally competitive and give a boost to the Indian economy.
- It aims to address the technological obsolescence, limited access to quality industrial infrastructure and common facilities in the capital goods sector.
Objectives of the scheme:
- To encourage technology development through joint participation with Academia, Industry R&D institute and Government and facilitate transfer/acquiring the critical technologies in the capital goods industry.
- To create common physical infrastructure for enhancing the competitiveness of the local industry, enabling it to withstand the import penetration.
Components Of The Scheme:The scheme has five components to achieve the desired result in pilot mode –
- Advanced Centres of Excellence
- Integrated Industrial Infrastructure Facilities(IIFC)
- Common Engineering Facility Centre(CEFC)
- Testing & Certification Centre(T&CC) and
- Technology Acquisition Fund Programme(TAFP).
About the Capital Goods Sector:
- Capital Goods refer to products that are used in the production of other products but are not incorporated into the new product.
- These include machine tools, industrial machinery, process plant equipment, construction & mining equipment, electrical equipment, textile machinery, printing & packaging machinery among others.
- Capital Goods industry is considered as the most important component of manufacturing sector.
- The manufacturing sector is crucial for the development of the country’s economy as the Capital Goods industry contributes about 12% to the total manufacturing activity in India that is about 2% of the GDP.
- The Government of India has set a target of USD 1 trillion manufacturing economy in the next five years and to achieve this the sector has to grow at double digits.