The Ministry of Heavy Industries and Public Enterprises released the growth data registered in various Indian industries such as heavy engineering equipment and machine tools, automotives, and heavy electrical engineering during each of the last three years and the current year.
The data shows that sector-wise, these industries failed to reach there respective targets due to general economic slowdown leading to lower investment by user sector.
To promote growth in the capital goods sector, the reduction in Excise Duty from 12 per cent to 10 per cent had been extended till 31.12.2014 to help industrial growth.
For 2015- 16, the reduction in customs duty from 7.5 per cent to 2.5 per cent on specific machine tools components during current budget would help in enhancing growth in production in Machine Tool Sector.
The Government has also launched a Scheme on enhancement of competitiveness in the Indian Capital Goods Sector which envisages infrastructural interventions like setting up of:
• Centers of Excellence for technology development
• Common Engineering Facility Centers
• Integrated Industrial Infrastructural Centre
• Test and Certification Center
The Scheme also envisages financial intervention through the component Technology Acquisition Fund Programme for acquisition and transfer of technology. The scheme is currently under implementation.
Automobile sector
For the automobile sector, the government reduced excise duty on vehicles until December, 2014 to help the industry revive from slowdown. The revised excise duties will be as follows:
• For small cars, 2 wheelers, 3 wheelers, and commercial vehicles from 12 per cent to 8 per cent.
• For SUV from 30 per cent to 24 per cent.
• On cars of length more than 4000 mm but engine capacity less than 1500 cc from 24 per cent to 20 per cent.
• On cars of length more than 4000 mm and engine capacity above 1500 cc from 27 per cent to 24 per cent.
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