To make the capital goods industry more competitive globally, the Department of Heavy Industry (DHI) has planned to consider a policy particularly focusing on capital goods sector. DHI Secretary M F Farooqui said, the department will examine developing a policy specifically targeting the beleaguered capital goods sector and after examining the policy issues, the department would make recommendations to achieve the target of 17% growth in the sector as envisaged in the 12th Five-Year Plan.
The capital goods industry, which constitutes heavy machinery including machine tools, currently, contributes about 12% to the total manufacturing activity. The Indian capital goods sector gives employment to 14 lakh people, has an important bearing on the growth of the user industries. The sector's growth has been decelerating in the recent years as the capital goods manufacturers have not been able to effectively tap global opportunities due to major issues faced by them like high interest rates, tax structure, reduction in custom duties and unregulated second-hand machinery imports.
The DHI expressed the need to encourage innovation and build competitiveness for the industry as this is the key sector for business expansion as well as it provides the sustenance for a large group of people. Further, the department also urged the government to consider giving the sector the same kind of support provided to the automotive sector.
MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.
To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.
MoneyWorks4Me ensures this through: