The objectives of the National Capital Goods Policy are to create an ecosystem for a globally competitive capital goods sector and achieve total production in excess of Rs. “Cabinet has given its approval for National Capital Goods Policy. The policy envisions increasing the share of capital goods in total manufacturing activity from 12 per cent at present to 20 per cent by 2025. “Capital goods manufacturing if it happens in India along with the manufacturing that is going to happen downstream, the entire economy gets fillip,” Union Railways Minister Suresh Prabhu said. It also advocates adoption of a uniform Goods and Services Tax (GST) regime ensuring effective GST rate across all capital goods sub-sectors competitive with import duty after set-off with a view to ensure a level-playing field.

Source: The Hindu May 25, 2016 05:00 UTC