Scheme for Enhancement of Competitiveness in Capital Goods Sector to be Scaled up

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News:Ministry of Heavy Industries and Public Enterprises is implementing the scheme for Enhancement of Competitiveness in the Indian Capital Goods Sector.

Facts:

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).

Additional information:

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‚Äôs 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.