“The way ahead lies in local. Local manufacturing, local markets, local supply chain. Local is not merely a need but a responsibility.” - Hon'ble Prime minister of India, Shri Narendra Modi"
You can consider this article to be a continuation of my previous article on Self-reliant India.
For people saying that we will stop buying Foreign products, but is there any cheaper Indian alternative? The answer to this question would be NO until you stop buying foreign goods.
Let us say our company needs Aluminium raw material and we have two buying options. Option 1 is an Indian vendor with a price of Rs 45 and Option 2 is a Chinese vendor with Rs 40. Let us assume I go for Rs 40 foreign vendor and I save Rs 5. I have won!
Now let us get into the background and see what happens. The transaction of buying that product happens in dollars. Demand for dollars increases which eventually increases its value and decreases the Rupee value. Now the government has to import any goods (say for example) crude oil at an even higher price which increases the petrol or diesel price for us. Many such imports and many such buying will have a combined effect and I would have spent more than 5 rupees (which I saved by going with a foreign vendor). Now all my operating cost on manufacturing would have increased and my end product would come at a price higher than the imported foreign products.
Now did I win?
I do not say boycott all the Foreign products. In this era of Globalization, it will be impossible to do so. But you can look at whether trade policies, security concerns, privacy (in case of Software) etc between countries is fair or not. Look at how a country is able to sell its imported products at a price lesser than ours.
Be wise! Think and act!
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