Question : Factors Restricting Domestic Demand

(a) whether negative approach towards domestic hike in prices under the procurement policy of the Government, hard contractual conditions, continuous imports, use of obsolete machinery with no encouragement for their replacement, zero import charges under project import and delay in implementation of projects are the factors that inhibit domestic demand; and

(b) if so, the details thereof and the remedial measures taken by the Government in this regard?

Answer given by the minister

THE MINISTER OF HEAVY INDUSTRIES & PUBLIC ENTERPRISES
(SHRI ARVIND GANPAT SAWANT)

(a) & (b): In order to strengthen the technology development and to augment the manufacturing infrastructure in the Capital Goods sector, the Department of Heavy Industry launched a scheme for the ‘Enhancement of Competitiveness in the Indian Capital Goods Sector’ in the year 2014. This was followed by the National Capital Goods Policy, 2016 which enunciates the initiatives that are being taken to accelerate the growth of the Capital Goods sector.
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