With "Make In India" dream in the eyes, here comes another update in the policy making of India. The Narendra Modi-led government has approved to give preference to the locally manufactured vehicle units, in order to go desi before videsi, when it comes to the brand building of our home based companies. It shall promote people to setup up their manufacturing and production plants in India itself. The ones with the 'goods or services that prescribe minimum thresholds for local content' shall fall under the local suppliers that shall be benefitted by the government in terms of its procurement.
This will also promote foreign dealers to form more and more alliances with the local contenders in the auto market, thus improving the intellect of local suppliers and exposing them to the global standards of output and technology.
The slots, as per the statement made by the Cabinet official, are divided as follows:
-suppliers of goods worth Rs. 50 lakhs and under with local capacity and local competition, "only local suppliers will be eligible".
-suppliers of goods and services greater than Rs. 50 lakhs with "insufficient local capacity/ competition if the lowest bid is not from a non-local supplier, the lowest-cost local supplier who is within a margin of 20 percent of the lowest bid, will be given the opportunity to match the lowest bid."
