JOIN USThe Central government’s decision that all sellers on the Government e-Marketplace (GeM) should declare the country of origin of products when they are being registered on the portal is a measure to promote local production. GeM is a platform for public procurement under the Ministry of Commerce and the changes being introduced in it have to do with the government’s Make in India policy and Atmanirbhar Bharat, according to an official statement. The government also changed its procurement policy by discontinuing the practice of global tendering for contracts worth less than Rs 200 crore. This was intended to help small and medium industries and businesses which have been hurt badly by the lockdown. The changes on the GeM platform seek information not only about the place of manufacture but also details of local content in products, and lay down guidelines on localisation. A Make in India filter has been added to ensure that the government and its agencies only purchase products that contain a minimum of 50% of local content.
These are unexceptionable because the measures are intended to help and encourage local businesses, and should be part of the economic policies of any government. But they should also be realistic and take into consideration the capacity and needs of the industry. It is significant that the new measures have been introduced in the wake of the hit the economy has taken as a result of the lockdown and the rising sentiment in the country against China because of the intrusion across the LAC. The government has proposed to adopt self-reliance, called Atmanirbharta now, as a policy to revive the economy. Measures that discourage imports from China may also be considered as part of that policy. The new GeM norms should be seen in that light.
But it may be unrealistic to think of a major reduction in imports from China in the present circumstances. India’s economy is dependent in a major way on goods and technology from China and is not in a position to do without them. China accounts for 15% of India’s imports while our exports make up only 2% of China’s trade. A reduction in trade will hurt India much but may not have any impact on China. Only if India can cater to its own needs can it think of any major cut in trade with China or use it as a pressure tactic. The Make India programme has not yielded any great results till now. So, it will be difficult to fully implement the ‘’boycott China’’ slogan that is being raised now.