The Capital Goods Sector will soon be the biggest contributor in the realization of ‘Make in India’. To make it happen, indigenous investment is equally important alongside inviting foreign investments to spearhead rapid industrialization and creation of Indian Multinationals, according to Shri Anant G Geete, Minister for Heavy Industries & Public Enterprises, Government of India.

The Minister said this while addressing the inaugural session of the Capital Goods Summit 2017 today in New Delhi and assured to provide all support to domestic companies to help realise their ambition to become multinational companies (MNCs). Industries are equally important as the Agriculture sector in the Indian economy. The government plans to spend INR3,000 crore to implement various programmes under the National Capital Goods Policy, he said. Government is also coming up with changes and support measures in key sectors including Capital Goods to fasten up employment creation, the Minister added. However, the fear is that in the race to become multinationals, domestic firms should not forget India, the Minister said in a lighter note, adding that a number of Indian industry was pursuing international ventures, especially in Africa.

The Capital Goods Summit was organized by the Confederation of Indian Industries and supported by Department of Heavy Industries, Government of India.

Mr Atul Sobti, Chairman, CII National Committee on Capital Goods & Engineering and Chairman & Managing Director, Bharat Heavy Electricals Ltd. (BHEL), in his special address said, India is the 3rd largest country globally having 12% contribution to the manufacturing volume at present and 20% to achieve by 2025. The Capital Goods sector is all the more critical as it has a spiral effect to many other sectors. Out of the total market size of USD 70bn, more than 40% of it, i.e. approximately USD 30bn is imported, making it the fourth largest item in the import basket. ‘The task before us is to convert that USD 30bn to indigenous demands, which will further be achieved through domestic self-reliance, innovative approaches, create-absorb-commercialize the innovation’, Mr Sobti added. The best of Make in India will be realized with this. Referring to the National Capital Goods Policy 2016, he further added that industry has to indigenize the most upcoming technologies. With the comprehensive cost competitiveness and talent availability, the future definitely belongs to Manufacturing, Mr Sobti said.

Delivering the welcome address, Mr Amar Kaul, Member, CII National Committee on Capital Goods & Engineering and Chairman & Managing Director, Ingersoll Rand India Ltd. said, “Capital goods sector which has a contribution of 12% of manufacturing volume and approximately 2% of the national GDP is expected to  turn around with major investments announced in various infrastructure projects, steel and textile industry.” Adding further, Mr Kaul said, “The share of imports in the Indian Capital Goods market has increased to 40% indicating some challenges to India’s self-reliance. At the same time the capacity utilization of domestic manufacturing is only about 60-70% across sub-sectors. In a globalized world where manufacturers are increasingly multinationals, now is the time for Indian Capital Goods manufacturers to effectively tap the global opportunities. ‘We need to accelerate demand and also try to localize that, attract more talents and also retain them, increase technology depth in manufacturing products  and achieve operational excellence, so as to make the mark in creating Indian Multinationals”, Mr Kaul said.

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