Corporate India has sought an allocation of Rs 1,500 crore for modernising the capital goods sector and developing industrial parks to reduce India’s dependence on imports.
“The capital goods sector needs a modernisation fund of Rs 500 crore and another Rs 1,000 crore for developing capital goods parks in the country,” the Federation of Indian Chambers of Commerce and Industry (Ficci) said in a paper.
The development of such parks is required to overcome the infrastructure deficiencies faced by Indian capital goods sector, said Ficci.
Capital goods imports in India have increased by over five times in the last six years from $6.5 billion in 2003-04 to $30 billion in 2008-09.
Ficci said the parks would ensure timely delivery of components and standardisation of manufacturing processes. They would also improve productivity and thereby help the sector become cost effective and competitive.
The proposed fund should be used for productivity enhancement through technology transfer, support to research and development projects, climate change, common facility centres and market development support, it added.
“The primary reason for lower productivity of the capital goods sector is the lack of latest technology,” it said.
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