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 Capital Goods Summit 2017 was organized by the Confederation of Indian Industries and supported by Department of Heavy Industries, Government of India.
The Minister assured all support to domestic companies to help realise their ambition to become multinational companies (MNCs). The government plans to spend INR 3,000 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 accelerate 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 on a lighter note, adding that a number of Indian companies are pursuing international ventures, especially in Africa.
Mr Atul Sobti, Chairman, CII National Committee on Capital Goods & Engineering and Chairman & Managing Director, Bharat Heavy Electricals Ltd. (BHEL), stressed that the Capital Goods sector is critical as it has a spiral effect on many other sectors. Out of the total market size of USD 70 billion, more than 40% i.e. approximately USD 30 billion is imported, making it the fourth largest item in the import basket. ‘The task before us is to convert that USD 30 billion to indigenous demand, which will further be achieved through domestic self-reliance, innovative approaches, and create-absorb-commercialisation of 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 indigenise the latest technologies.
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.” 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 global opportunities. ‘We need to accelerate demand, attract more talent and also retain them, increase technology depth in manufacturing products and achieve operational excellence, so as to make a mark in creating Indian Multinationals,” Mr Kaul said.