UPSC Articles
ECONOMY/ GOVERNANCE
Topic:
- GS-2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.
- GS-3: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
Business Localisation
Context: As global businesses look to diversify their supply chains, the spotlight is back on the government’s ‘Atmanirbhar Bharat’ (Self-Reliant India) campaign.
Benefits for Localisation
- Benefits for Customers:
- Locally produced goods are aptly suited for their home markets as they are developed and tested in local conditions
- Due to local manufacturing, customers (intermediary or end use) can expect faster deliveries.
- Local product tend be cheaper than imported goods due to differential rates of taxation
- Benefits to Companies
- Local manufacturing enables a great deal of flexibility which allows cost efficiencies, control over quality, faster turn-around times in terms of production, transportation, deliveries, etc.
- Manufacturing locally helps India’s industries grow and its talent pool to develop specialised skill sets.
- Localisation can be the gateway to further opportunities such as export growth, import substitution, and contract manufacturing.
- Benefits to Country
- India has the world’s largest population of youth at an employable age. Local manufacturing makes for a great opportunity for the country to supply a workforce to its industries.
- Localisation assists in raising the standards of the lives in the area.
- Localisation enables knowledge sharing and tech transfer with other countries, lending the home country access to the latest global technologies too
- Allows country to position itself as a manufacturing hub for other countries.
Conclusion
With greater government support and industries’ combined efforts, India will surely reap the numerous benefits of localisation in years to come
Connecting the dots:
- Atmanirbhar Bharat Abhiyan
- Do you think the vision of Atmanirbhar Bharat would be a game changer for the domestic industries? Substantiate your views.
