India is proposing to put additional industries, including textiles, in the scope of a major capital goods promotion programme. The government is eager to encourage other industries, but the existing capital goods promotion scheme primarily supports the manufacturing of electrical components and automobiles. There are plans to introduce cutting-edge technology in addition to those utilised in the production of automobiles, batteries, and electric vehicles.
“Proposals to expand the ambit of the scheme are being considered. The aim is to better cover capital goods manufacturing across sectors,” a senior official aware of the development reportedly said.
With a Rs. 995.96 crore investment, the capital goods scheme’s first phase began in November 2014. With industry contributions of Rs. 232 crore and budgetary assistance of Rs. 975 crore, its second phase commenced in January 2022. The programme aims to close the skills gap and address the infrastructure development and technology requirements of the capital goods industry. Official estimates place the capital goods sector’s contribution to India’s GDP at roughly 12 per cent and its employment rate at 5.5 million.
India’s capital goods industry is segmented across various segments which also includes textile machinery.