Centre urges foreign firms to use locally manufactured materials
Keeping in line with schemes like Make in India and Aatamnirbhar Bharat, the Central government will demand foreign firms to use more locally manufactured materials when working on government-run projects. The government is urging domestic manufacturers to cut down on imports and become a self-reliant economy. This will boost domestic manufacturing and decrease India’s dependency on foreign nations further creating a seamless supply chain.
According to reports, Department for Promotion of Industry and Internal Trade (DPIIT) ordered all government administrative divisions to notify it of projects valued above Rs 10 billion (USD 135.96 million) that are planned for the next five years.
DPIIT has still to announce the new local content requirement threshold for foreign firms entering into partnerships for state-run infrastructure projects. The threshold is currently 20-50 percent. In addition, companies in countries, which do not allow Indian firms to participate in their government projects will not be allowed to tender bids for Indian government projects.
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