Not Quite the Policy Capital Goods Need

摘要

The Draft National Capital Goods Policy would appear to be an employment guarantee scheme for batous rather than anything designed to expand and improve India's capital goods sector. The sector is today defined more by negative factors than by positive ones. The negative determinants of the country's capital goods sector can be summarised as follows: (a) absence of a vibrant domestic manufacturing sector, (b) absence of a culture of research and development that would constantly innovate goods used to produce goods or deliver a service, (c) absence of commitment to quality and long-term profits among domestic producers, (d) absence of clarity on the need to structure import duties in a manner that promotes manufacturing in general rather than specific sectors, and (e) absence export finance/transaction ease on par with the competition's.