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
