FDI In Capital Goods Sector— Procedure, Fees And Documents Required

The main objectives of FDI in capital goods industry is as given as follows:

• To create jobs for local workers, empowering the growth of skills directly and indirectly.
• To provide massive opportunities to increase capital infusion.
• To enhance expertise, empowerment, endeavor, and evolve modernization in building a strong manufacturing empire.
• To turn laborers into experts by providing them with quality training for proper handling of novel equipment.
• To extend offers to investing companies for cheap labor and quality raw products, increasing competition at a global scale.

The advantages which are derived for stakeholders in capital goods industry is as follows:

1. Opportunities - India is targeting to achieve expansion in consumer electronic brands worth US$ 300 Bn in electronic exports of US$ 120 Bn by 2026. This goal helps investors to excel positive results in making collaborations on big project management.
2. Growing Demand - In August 2021, Lenovo announced that it is considerably expanding its local manufacturing potential in India across varieties of categories such as PCs, laptops and smartphones, to satisfy rising consumer demand. In addition to TAM's latest AdEx report, television advertising for the durables sector grew 2.5 times during January-May 2022, as compared to the same period in 2021. The sector grew 23% YoY in January-May 2022.
3. Policy support - The government of India approves around 14 companies in the IT segment in March 2022 under PLI scheme ( Productive Linked Incentive) for better fuelling of consumer durables from India to become a paramount supply chain with the total production cost of ₹ 1,60,000 Cr by FY26-27. Many companies are continuously involved in structuring better plans for a better India ahead.
4. Increasing Investment - Between April 2000-September 2023, electronic goods attracted FDI inflows of US$ 4.42 billion. Beside this, FDI in the Appliances and Consumer Electronics (ACE) industry has nearly doubled to US$ 481 million by June 2022, up from US$ 198 million in 2021.
   In addition to this estimation, In FY23, Godrej Appliances announced plans to invest US$ 25.11 million in the capacity expansion of its premium range.

1. Raise standard in quality - Foreign Direct Investment raises the standard in quality of capital goods material which is used for many purposes for laying strong, resilient, and unwavering loyalty to a country’s infrastructure.
2. Increasing investment - 404 Benefits derived from increase in investment in capital goods industry manifests true worth which highlights in the union budget by the government in 2023-2024, to invest over 10 Lakhs crore: 33% increase in capital investment outlay, Urban Investment Outlay Fund ₹10,000 cr. per year to create urban infrastructure. Beside this, PM Awas Yojana i improved by 66% to ₹ 79000 cr.
3. Lucrative offers - Cost of production in the construction industry in India is lower as compared to other countries, serving lucrative offers to investing companies, by the usage of cheap and skilled labourforce and other investment incentives that leverage the growth of industry as well as investing companies.
4. Technology Transfer - Technology transfer helps domestic companies in facilitating the best formulation in improving traditional methods of increasing production volume profoundly. This creates a large pool in picking the best methods in quality products.