The spurt in capital goods import in recent months is a good sign indicating revival of the manufacturing sector in the country, according to Union Commerce Secretary Rajeev Kher.
He was speaking at the inauguration of the 4th India Engineering Sourcing Show in Mumbai, organised by the EEPC India in association with the Union Ministry of Commerce & Industry. Capital goods imports had registered a whopping 49 per cent increase during November 2014.
Kher said that the ‘Make in India’ initiative announced by the government and the follow-up policy measures are set to create a conducive atmosphere for growth of the manufacturing sector.
“Over the last 10 years, we have significantly moved ahead in export of value-added products,” he said. As such, India’s engineering exports on Tuesday range from iron and steel products to aerospace products.
“We have to pick up the winners and reward them,” he added. The secretary said that the opening up of defence production, railways and construction sector promises huge investment opportunities in India.
He also said that the renewable energy sector, with a thrust on solar power also holds immense potential. He listed electronics and medical devices as the two other promising sectors for investment.
Kher said that the Foreign Trade Policy, which is under preparation, will recognise and incentivise engineering products.
“Suffice it to say that technology-driven, skill-driven sectors will receive greater impetus,” he said.
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