FICCI hails government’s move to give preference to local goods and services

The Dollar Business Bureau

The government is seeking to approve a policy that would give preference to local goods and services in public procurement. This move by the government has been hailed by the Industry body FICCI which expressed that domestic manufacturing would get a shot in the arm and at the same time promote the ‘Make in India’ initiative.

Speaking to the media, FICCI Secretary General A. Didar Singh said, "This was the long-standing demand of Indian industry and is essential to promote domestic manufacturing growth. This is a legitimate tool under our multilateral commitments and with number of major government initiatives this can be leveraged to promote value addition, create employment and give a much-needed boost to the manufacturing.”

The policy has been approved by the Cabinet. According to the policy, “local suppliers are those who meet the prescribed minimum thresholds, preferably 50%, for local content, which is essentially domestic value addition.”

The industry body also detailed that local content can be enhanced and increased through partnerships, local company tie-ups, establishing manufacturing units in the region necessary, launching joint ventures with Indian suppliers and encouraging the increased participation of local talent and training them.