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Importance of Capital Goods Sector: An Application of E3-INDIA Model

In: Economy-Wide Assessment of Regional Policies in India

Author

Listed:
  • Priyam Sengupta

    (Gokhale Institute of Politics and Economics)

  • Shraddha Shrivastava

    (Gokhale Institute of Politics and Economics)

  • Kakali Mukhopadhyay

    (Gokhale Institute of Politics and Economics
    McGill University)

Abstract

The Capital GoodsCapital Goods (CG) sector industry is of strategic importance for the economic independence of a country. Recognising the potential of this sector, the Government of India has formulated several comprehensive policies that have been evaluated in this chapter using the E3-India model. Given the varied level of infrastructure capability across different states, the ability of states to benefit from national policies varies enormously. The main hurdles to the development of the Indian capital goodsCapital Goods (CG) sector sector are low investment, obsolete technology and highly competitive imports. Furthermore, the pandemic has completely shifted the focus from all ongoing projects to immediate crisis management. Working capital constraints, high fixed costs and recurrent payment delays have collectively added to the immense pressure on the already ailing Indian companies plagued by capital crisis.

Suggested Citation

  • Priyam Sengupta & Shraddha Shrivastava & Kakali Mukhopadhyay, 2021. "Importance of Capital Goods Sector: An Application of E3-INDIA Model," Springer Books, in: Kakali Mukhopadhyay (ed.), Economy-Wide Assessment of Regional Policies in India, chapter 0, pages 103-153, Springer.
    • Handle: RePEc:spr:sprchp:978-3-030-75668-0_5
    DOI: 10.1007/978-3-030-75668-0_5
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