Modi missive to ministries on local electronic goods

In a move aimed at giving a boost ‘Make in India’ initiative, Prime Minister Narendra Modi has asked his cabinet colleagues to give preference to domestically manufactured electronic products in government procurement. According to the new directive issued to all ministers from Prime Minister’s Office (PMO) on Saturday said, “A Committee of Secretaries has decided that all ministries and departments should identify department-specific domestically manufactured electronic products for procurement, and notify them within a fortnight.”

The order also said, “All government departments have been asked to adhere to a tender template already issued by the Department of Electronics and Information Technology, for procurement of electronic items.”

The Department of Electronics and Information Technology has also been asked to put in place an online monitoring system for reporting by ministries/departments and state governments, on procurement of electronic products. This system, to be operationalised in a fortnight, will capture the break-up of domestically manufactured electronic equipment by value.

This latest move of government has raised  eyebrows of India Inc. Dubbing the move as anti-industry, prominent industry bodies raised their reservations over the order. An official of Federation of Indian Chambers of Commerce and Industry said, “Since there are only a few Indian companies in the manufacturing of electronic goods, what will happen to products being manufactured by MNCs? This move of the government will discourage country-based MNCs.”