Why is it in the news?
Union Budget 2026–27 announced a major push to the capital goods sector.
Public capital expenditure increased to ₹12.2 lakh crore.
Category: Economy
Important Points:
● Public capital expenditure increased to ₹12.2 lakh crore
● Government capital outlay rose 4.2 times from FY18 to FY26 (BE)
● Scheme for Enhancement of Construction and Infrastructure Equipment introduced
● ₹10,000 crore Container Manufacturing Scheme over five years
● Five-year income tax exemption for non-resident suppliers to toll manufacturers in bonded zones
● Customs duty exemption on capital goods for lithium-ion cell manufacturing
● Customs duty exemption for processing critical minerals
● Capital goods include plant, machinery, equipment for production and capacity expansion
● Sector has multiplier effect estimated at 2.5–3.5 times
● National Capital Goods Policy 2016 and PLI schemes support sector growth