Business Localisation

  • IASbaba
  • May 21, 2021
  • 0
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  • 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

  1. 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
  1. 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. 
  1. 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. 


With greater government support and industries’ combined efforts, India will surely reap the numerous benefits of localisation in years to come

Connecting the dots:

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