India to demand foreign firms to use locally produced materials on infrastructure projects

India will demand foreign firms to use more locally produced materials when working on government projects, a notification was passed on Friday.

India will demand foreign firms to use more locally produced materials when working on government projects, a notification was passed on Friday.

Indian Government under leadership of Prime Minister Narendra Modi’s has launched ‘Make In India’ and ‘Atmanirbahar Bharat’. The flagship campaign aims for a self-reliant economy by urging domestic manufacturers to cut down on imports and in turn promote exports.

The Indian trade ministry’s Department for Promotion of Industry and Internal Trade (DPIIT), ordered all government administrative divisions to notify it of projects valued above Rs 1000 crore ($135.96 million) that are planned for the next five years.
DPIIT has to still announce the new local content requirement threshold for foreign firms entering into partnerships for infrastructure projects. The threshold is currently at 20-50%.
According to the notification, firms in countries which do not allow Indian companies to bid will not be allowed as a reciprocal.

 

Earlier, the Indian Government had banned imports from China amid border clashes.

Advertisement