INDIA’S ‘VOCAL FOR LOCAL’: A BUZZ WORD DURING COVID 19 PANDEMIC

‘Vocal for Local’ became the Covid 19 pandemic time buzz word for India. This article analyses what does vocal to local connote?  Why India adopted this strategy during Covid 19 pandemic? What are the implications of this strategy? Prior to 1991 LPG policy, India has adopted protectionist policies probably due to its experience with East India Company and several invasions. Protectionist policies of India weakened the country’s economy and India had to liberate its economy from the shackles of protectionism. India had to further liberate its economy after GATT became WTO and the subsequent developments in the Uruguay round. After India started witnessing positive balance of payments, only due to the capital account, India had to reduce its import tariffs considerably paving the way to huge imports into the country. India is indeed satisfied with its progress looking at its growth figures as it has always witnessed low growth prior to 1991. As India was growing it became complacent with its growth and employment it could generate. In the process it either failed the MSME sector or contributed to the low growth of the MSME sector. As imports especially the ones that don’t require technical expertise or the low tech imports which the country’s MSME is capable of manufacturing lost its competitive advantage to low cost imports of China. There arises a question, did the government fail in making the MSME sector competitive by being complacent with its growth and employment generation. The employment generated in this country is mostly related to value addition in   supply chain activities not through value addition in manufacturing. When we keep on importing finished products, we cannot generate employment through value addition in manufacturing. Why China wasn’t affected by Covid 19 pandemic the way India is affected?  Is it because China was a global supplier, hardly its economy got affected? At the same time, is India a global buyer? India’s vocal for local strategy pitches for local manufacturing, whether the manufacturer may be local producer or a foreign producer in India, there would be no discrimination in treatment. One way India is encouraging MNCs to manufacture in India and is promoting glocalization policy which may be a balanced approach between protectionism and globalization. Vocal for local strategy promotes both localization and glocalization, imbibes a culture among the people in the country to buy and promote local products.

 

Keywords: Atmanirbhar Bharat, Glocalization, MSME Sector, Polycentric Approach Vocal for Local.


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