Import duty on capital goods may be self-defeating

It goes without saying that the capital goods industry constitutes the fulcrum of the manufacturing base of any country. More than consumer goods the production of capital equipment can test the innovativeness of a society, its commitment to productivity norms and effort it puts in to attain higher levels at every stage. Innovations in consumer goods reflect the ability of a manufacturer to anticipate consumer tastes and product refinement in order to stay ahead of the competition; in capital goods, innovation's impact is felt all the way down the line such as on consumer goods manufacturers. To that extent the benefits of higher productivity levels and cheaper prices in capital equipment

Source: The Hindu Business Line