India's 'Aatmanirbhar' Push: Govt Asks Companies To Reduce Imports, Indigenise Component Manufacturing
The government has called for domestic companies to develop a plan for indigenising their component manufacturing, in an effort to cut imports and boost local production.
The Ministry of Commerce and Industry held a meeting with major importers of electronics, oil, mobile phone, and automobile components, including Apple, Tata Steel, and Lenovo.
"Suggestions were taken on indigenisation of components and the companies said they will come back with a timeframe and roadmap for the same," an official was quoted by the Economic Times as saying.
According to the official, the companies were asked to reduce their reliance on imports and improve their domestic manufacturing practices.
The meeting gains significance as India's merchandise trade deficit has continued to widen, reaching $218.94 billion from April to December 2022, compared to $136.46 billion the previous year.
The government is striving to maintain supply chain resilience and diversify import sourcing from a few countries.
Petroleum and electronic goods alone accounted for nearly half of India's imports in the first nine months of Financial Year 2021-2022.
Companies were also asked to prioritise locally manufactured products over imports.
The companies, according to an official quoted in the report, were preferring to import even when domestic production is available for a product, just because there's a minor price difference.
As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.
Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.
We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.
Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.