India capital goods self-reliance: Piyush Goyal backs container manufacturing and skills

Commerce and Industry Minister Piyush Goyal on Tuesday called for India to become self-reliant in capital goods. Goyal said building capacity in areas such as container manufacturing could help India’s export and import trade. Goyal spoke at a post-Budget webinar on manufacturing, industrial upgrade and strategic sectors. The discussion focused on gaps, skills, and investment needs across industries.

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Goyal said the capital goods segment should be promoted quickly. Goyal said this could unlock nearly Rs 2.5 lakh crore of CPSEs inventory. Goyal added that these points formed part of suggestions discussed in three sub-groups. Goyal also referred to inputs shared by other ministers during the webinar sessions.

Capital goods sector push and machine tool imports

Goyal said Textiles Minister Giriraj Singh stressed machine manufacturing in India. Goyal said it is time to accept the need for self-sufficiency in capital goods. Data shared during the webinar showed India’s machine tool imports rose 15 per cent. The value reached USD 5.43 billion during April-January 2025-26.

During April-January 2025-26, India’s imports of machinery increased as well. Imports of machinery, electrical and non-electrical, rose 14.21 per cent. The value reached USD 50.8 billion in that period. Speakers linked the import rise to a need for stronger domestic capacity. They also discussed faster industrial upgrades.

Capital goods sector needs in semiconductors and electronics

Goyal said the sub-group discussions highlighted gaps in the semiconductor 2.0 supply chain. Participants pointed to the need for talent and supplier confidence for full stack-up. For electronics components, the focus included localising capital equipment and materials. The discussions also flagged targeted skill development for this segment.

Capital goods sector links to chemicals, rare earths and biopharma

Other suggestions covered chemical parks and related upstream issues. Participants asked for plug and play infrastructure and predictable clearances to fix upstream import gaps. For rare earth corridors, the suggestions included linking mining to manufacturing. Another point raised was the need to create demand for the Biopharma Shakti scheme.

Capital goods sector context in textiles and handloom plans

Goyal said the textiles sector needs global scale. Goyal said India should shift from cotton towards MMF man made fibre. Goyal also spoke about technology use in traditional sectors. "We must look at digital handloom platforms to promote our handloom and handicraft sector -- I think now we need to move from thought to action, from plans to outcomes and from discussions to action on the ground,\" Goyal said.

Goyal said container manufacturing near ports could support export-import activity. In the Union Budget, the government proposed three new dedicated Chemical Parks. The Budget also proposed a scheme to revive 200 legacy industrial clusters. Goyal said clearer sector priorities have emerged, including faster processes, stronger academia links for skills, flexible land allocation, water reuse in textiles, and new PPP or SPV models.

With inputs from PTI