NEW DELHI: The capital goods industry needs to invest more to help the country attain a gross domestic product (GDP) growth of 10-12 per cent, V. Krishnamurthy, Chairman, National Manufacturing Competitiveness Council (NMCC), said here on Friday.

"While the capital goods industry had registered commendable growth in the past three years there was more that they could do. When I look at the totality of the requirement or the height to which the capital goods industry should reach or what is required of this industry to attain a GDP growth of 10-12 per cent, this impressive growth leaves much to be desired," Mr. Krishnamurthy said at a meeting of the Confederation of Indian Industry (CII) National Committee on Capital Goods and Engineering.

Commenting on the findings of a report on capital goods industry, recently prepared by the CII, he said the study had revealed that the industry was witnessing a turnaround and the capital goods manufacturers were experiencing excellent growth in top and bottom line. While exports had not grown as desired, the overall sales position had improved over the last two years.

Mr. Krishnamurthy described the capital goods industry as the mother of all manufacturing industry and underlined the need for the players to increase the level of investment without waiting for orders to come in as was done by China. Pointing to the fact that at 7 per cent growth rate India was importing 70 per cent of its machine requirements, he urged the industry players to think how far this gap would widen when the growth rate increased to 12-14 per cent.

The demand for capital goods was going to be huge in the coming years and the industry needed to invest in order to meet this demand.

Regarding the industry's demand for certain concessions, he said, "I want the industry to find out how do we accelerate our present rate of development. It is not adequate with reference to the increased requirement and most of what has been asked for is not difficult for the government to give but after that will the industry be able to meet India's requirement of capital goods," he asked.

According to him, there is a pressing need for the capital goods industry to catch up with the technological developments the world over.

V. Govindarajan, Member-Secretary, NMCC, said the capital goods industry had to address the issues, which were a priority for the government. The developments in the sector must generate employment, the main concern of the government today.

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