Inter-Ministerial Committee set up to strengthen Capital Goods Sector

November 12, 2020

On November 11, 2020, the Government of India set up an inter-ministerial committee to strengthen capital goods sectors. This will help India achieve its goal of becoming a 5 trillion USD economy.

Highlights

The Government of India has set up a 22-member inter-ministerial committee to strengthen Capital Goods Sector. The committee will look into issues pertaining to Capital goods Sector. This includes global value chains, skill training, global standards, custom duties

Capital Goods Sector in India

The Capital Goods Sector of India holds its strong base in construction, engineering, infrastructure, consumer goods. The sector had an overall production of 13.6 billion USD in 2018-19. The Capital Goods Industry provides 1.4 direct employment opportunities and 7 million indirect employment opportunities.

Growth of Capital Goods Industry in India

India has introduced several market-oriented reforms such as “Power for All”. Also, India aims to add 93 GW by 2022. This will generate huge demand for power transmission and distribution equipment. By 2022, the Electrical Equipment industry is targeted to reach 100 billion USD. By 2022, the Transport and Distribution industry is to reach 75 billion USD.

Market Size of Capital Goods Sector in India

The capital goods in India has a market size of 43.2 billion USD. The industry is divided into 10 sub sectors. The sub sectors and their market contribution are as follows

Heavy Electrical Equipment: 24.2 billion USD
Earth Moving and Mining Machinery: 3.3 billion USD
Process Plant Equipment: 3.7 billion USD
Printing Machinery: 3.01 billion USD
Food Processing Machinery: 2.4 billion USD
Textile Machinery: 1.8 billion USD
Dies, moulds and press tools: 2.3 billion USD
Metallurgical Machinery: 0.4 billion USD
Plastic Machinery: 0.5 billion USD
Machine Tools: 1.4 billion USD