Vocal for Local

1. Why in News?

On May 12, the

Prime Minister
made it clear Again addressing
Recently, On 31st
that GOI is the nation on its
Therefore, On Aug, in “Mann ki
committed to 74th
May 12th, Prime Baat’ Programme
remove all Independence
Minister called PM once again
domestic hurdles Day ,PM urged
upon Indians to said that it was
before the country to
be “vocal for time for startups
manufacturing embrace the
local”. to be “vocal for
and attract a "Vocal for Local"
local toys”
share of the pledge.
global value
chain
2. How do we define Vocal for Local from Indian perspective?

• ‘Vocal for Local’ is becoming the most trending phrase which means that all 1.3 billion Indians to be “vocal for local” —
meaning, to not just use domestically made products but also to promote them.
• Experts feel that it is an extension of the ‘Swadeshi Movement’ idea conceived by some great freedom fighters of the
country, including the Father of the Nation, Mahatma Gandhi.
• The movement, which started in the early 1900s, called for the use of locally-made products.
• The idea of ‘Vocal for Local’ clarion is to create more local brands and take those to the global arena.

3. What are the dimensions of Vocal for Local?

The idea is to cut down dependence on reliance of imports from one country while encouraging local manufacturing.
4. Self-reliance and “Vocal for Local” serve each other

• Self-reliance is directly connected to quality.

• It is widely accepted that the developed nations are able to dominate global markets because of their innovative products
and their quality.
• It is clear that the Self-reliance and vocal for local is to produce goods of a quality that not only reduces dependence on
imported goods, but also makes them well sought after globally while placing India amongst the foremost exporters of
the world.
5. How Vocal for Local Strengthens the idea of Atma-Nirbhar Bharat.

• The literal meaning of the term Atma-Nirbhar Bharat Abhiyaan is Self-Reliant India Movement.
• The Vocal for Local Strengthens the idea of Atma-Nirbhar Bharat as both represent essentially an optimistic view of India’s
future by substantially enhancing its competitiveness in many more sectors and activities not currently being tapped for
greater value-addition; creating new growth nodes and business formations in the country
6. Evaluate the idea of Vocal for Local from the perspective of Globalization.

• “Vocal for local” is not a rejection of globalisation, but a call for a new form of globalization i.e. from profit-driven to
people-centric.
• India is the repository of such a wisdom, it’s the “Vishwa Guru”, teacher of the world. For example:
I. “The global brands of today were sometimes very local like. they became global from (being) local.”
II. The India-led globalisation on climate, on being helpful to other countries by offering them supplies in a time of
crisis, led by the principle of “Vasudhaiva Kutumbakam”.

7. In your opinion whether Vocal for local strengthens or Weakens the policy of Make in India.

A) Vocal for local strengthens the policy of Make in India.

• It empowers local brands, start-ups and MSMEs.
• It helps new brands come to light and aid and assist them.
• Self-reliance and Make in India will prepare the country for tough competition in the global supply chain. It will not only
increase efficiency in various sectors but also ensure quality.
• The focal point of the concept is to make the nation self-reliant by boosting Make in India. with more focus on local
manufacturers and service providers, it will strengthen the economy, improve the standard of living and most importantly
improve the trade deficit and the exchequer balance of the country.
• Making the country self-reliant in all spheres- from manufacturing to supplying. It will help the country to reduce its
dependence on imports and may also give a boost to exports. The fall in imports will help reduce the trade deficit and will
eventually lead to trade surplus.
• ‘Vocal for Local’ can create China like startup ecosystem. Several domestic and international companies are looking for
home-grown startups across the sectors from every nook and corner of the country.
B) Vocal for local Weakens the policy of Make in India.

• India opened itself to the global market in 1991 through its LPG (liberalisation, privatisation and globalisation) reforms,
but remained hesitant in giving the market model full freedom.
• India is far behind from its target of achieving manufacturing sector contribution of 25% of the GDP, Currently, the Make
in India initiative hasn’t reached its intended goal and manufacturing is only at about 17% of GDP.
• India is dependent on China for imports related to electronics, solar equipment, pharmaceutical (Active pharmaceutical
ingredients) and Capital goods,
• Without developing domestic capacity for manufacturing in these areas, breaking away from dependence on China would
not be easy.
• Information asymmetry with respect to Central and State governments can act as a roadblock on ease of doing
business. this is particularly important in sectors like manufacturing, healthcare and agriculture.

8. What are the institutional and Systemic Challenges in front of Vocal for local?

• The collateral-free or unsecured loans announced for MSMEs may lead to higher default by the companies and lead to
higher NPAs.
• The banking sectors, especially the PSU, are already reeling under the bad loan issues and with unsecured loans, may see
further deterioration in their asset quality.
• Higher default rates will also increase the cost burden of the government, as it may have to provide cushion to the ailing
banks.
• The total government expenditure that will be incurred through the package is only 1% of the India’s GDP growth. As such
these measures will not be adequate enough to boost the demand sentiment in the economy
9. Recently Modiji talked about Vocal for local and then local to Global on his Independence Day speech. What is the
Significance of this perspective from $5t dollar economy?

• The Prime Minister gave a call of Atmanirbhar Bharat (self-reliant India) movement supported by the ‘vocal for local’
campaign.
• The new slogan diverted the attention of policymakers from the vision of a $5-trillion economy to a self-reliant India and
its possible interpretations.
• The intense debate has ensued focus on the relevance, feasibility and sustainability of ‘self-reliance’, and the vision of
$5-trillion economy is relegated to the background.
• The development policy agenda seems to be in perpetual transition with leadership slogans, resulting in numerous
strategic visions, programmes, projects, campaigns and schemes, with few follow-ups
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