Praful Patel for export incentives to capital goods industry
business, feature 04:25
New Delhi, Nov 26: Amid decline in engineering exports, Minister of Heavy Ind and Public Enterprises Praful Patel pitched for export incentives to capital goods industry to boost growth in the sector.
Speaking at a CII function in New Delhi on Monday, he said that several countries like China provide support to their capital goods sector.
"We certainly have a case for incentivising exports of capital goods what we produce in the country. Other countries are doing it. China for example...
"These products are being supported very aggressively by the local governments and that does cause a concern for manufacturing facilities which are being set up in our country," he said.
During the first six months of the current fiscal, engineering exports dipped 10 percent to USD 27.8 billion compared to the same period last year.
India exports engineering items such as transport equipment, capital goods, other machinery/equipment and light engineering products like castings, forgings and fasteners.
The Minister also called for support to the domestic manufacturing industry. Citing the example of the government support to the power equipment manufacturers in terms of increasing import duty, he said there is need for more support to such sectors in order to boost manufacturing segment in the country.
“We have been able to bring in a little bit element of import duty but still I am sure (it) is not enough.”
"...Because those kinds of products are also not only backed by the government (of other countries) in terms of their tariffs and concessions, but a lot of funding is also coming for those products through the financial agencies of those countries...," the Minister said.
In July, India has imposed a 21 percent import duty on import power equipment, a move which would benefit domestic firms, including Bharat Heavy Electricals Ltd (BHEL) and Larsen and Toubro Ltd (L&T).
Speaking at a CII function in New Delhi on Monday, he said that several countries like China provide support to their capital goods sector."We certainly have a case for incentivising exports of capital goods what we produce in the country. Other countries are doing it. China for example...
"These products are being supported very aggressively by the local governments and that does cause a concern for manufacturing facilities which are being set up in our country," he said.
During the first six months of the current fiscal, engineering exports dipped 10 percent to USD 27.8 billion compared to the same period last year.
India exports engineering items such as transport equipment, capital goods, other machinery/equipment and light engineering products like castings, forgings and fasteners.
The Minister also called for support to the domestic manufacturing industry. Citing the example of the government support to the power equipment manufacturers in terms of increasing import duty, he said there is need for more support to such sectors in order to boost manufacturing segment in the country.
“We have been able to bring in a little bit element of import duty but still I am sure (it) is not enough.”
"...Because those kinds of products are also not only backed by the government (of other countries) in terms of their tariffs and concessions, but a lot of funding is also coming for those products through the financial agencies of those countries...," the Minister said.
In July, India has imposed a 21 percent import duty on import power equipment, a move which would benefit domestic firms, including Bharat Heavy Electricals Ltd (BHEL) and Larsen and Toubro Ltd (L&T).
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