Make In India 2.0
Make in India’s first version launched in 2014, India has primarily become an assembly hub in industries such as mobile phones, lighting and consumer electronics. In other words, manufacturers assembled products from imported electronic components to meet domestic demand. Assembly created jobs. Nonetheless, the domestic value addition continued to be low at under 30%. Make in India 2.0 is likely to press the accelerator on vertical integration, where the component supply-chains are coerced to be local because of import substitution. Finance minister Nirmala Sitharaman had announced that global tenders will be disallowed in government procurement up to ?200 crore (about $25-26 million). Experts are of the view that small firms are ostensibly going to benefit, the long-term stability of this policy shift remains to be tested. Nevertheless, import substitution does not mean the government is giving up on export dreams either. The idea is to help domestic companies get to scale, first. Also, every industry, would need a different playbook to achieve vertical integration or self-reliance.
Tags : ALLIED Government Nirmala Sitharaman Self-Reliance Make In India 2.0 manufacturers local electronics