For some time now, the ‘Make in India’ initiative has been focused and adopted by different industries. However, as worldwide companies look to diversify their supply chains, the focus is again on the ‘Atmanirbhar Bharat’ Localisation campaign by the government.
Localisation can really bear fruit when companies and public authorities come together to push this agenda forward. Many government initiatives, including the “Skill India,” “Easy to Do Business Policy,” “Production Linked Incentive Scheme” and “Foreign Direct Investment” are all steps in the right direction. Everyone can win by combining government and industry efforts. Below are some of the advantages.
Customer benefit
The benefits for Indian customers who choose products produced in India are multiple. Initially, products designed or manufactured in a country are suitable for their home markets, as they are developed and tested in local conditions. This can contribute to qualifying a product as the best in its category. Secondly, because of the local production, customers (intermediary or end use) can expect quicker deliveries because import delays driven by travel times and lengthy documentation processes sometimes occur. Thirdly, taxes, duties and costs on the goods imported can make the local product competitive, allowing the buyer to appreciate the price of value.
Company benefit
Local production allows a great deal of flexibility, allowing cost efficiencies, quality control, faster turnaround times with regard to production, transport, shipments etc. Localization can also not only save production costs but can also reduce logistics and delivery times. Local production helps India’s industries to grow and its talent pool to develop Localisation specialised skills. Such scale and diversity lead to innovation for companies.
The country’s benefit
The advantages of Localisation at national level are multiple. First, it helps boost people’s economy and lives. India has the world’s largest working-age youth population. This gives the country a great opportunity to supply its industries with a workforce.
Employment places spending power in people’s hands, helping the economy in turn. Another benefit is the development in an area/region when operations are established. Localisation allows sharing of knowledge and technology with other countries, providing home countries with access to the latest global technology as well. Overall, localization helps to raise living standards in the country/area.
The expansion of manufacturing locations not only allows a country to become autonomous, but also places itself as a production hub for other countries. Localisation, however, allows a nation to build on its export capacity and to boost other revenue sources.
Localization – for the vertical transport sector
Such a localisation has introduced world-class technology, enabled the sharing of knowledge, technology transfers, and skills of our people and brought value-added products to the Indian shores. India has also become a global supplier of talent to develop innovation for the global market.
With more government support and combined efforts from industry, India will certainly benefit from numerous localization benefits in years to come.
