Proposed 'Buy Indian' policy to boost Modi's 'Make in India'

Under the Buy American Act of 1933, US products for government purchases are preferred. Similarly, the Indian government via his national procurement policy would also prefer purchasing products that are manufactured in India.

The purchases could be as varied as buying computers, mobile phones, medicines to stationary and even metals required for government and railway projects.

The recommendations were made to PM Modi by a group of secretaries headed by commerce secretary Rita Teaotia. It is now understood that the commerce ministry is giving final touches to the policy and post that the expenditure department of the finance ministry will notify it.

The proposed scheme which is World Trade Organisation (WTO) compliant will also provide incentives to companies that manufacture in India.

The new policy proposes to use the government e-Market (GEM) platform to procure goods and services for the government so that there is complete transparency, said an official familiar with the plan to Live Mint.

Hailing the new policy as a 'bold' plan, Sunil Kant Munjal, Chairman, Hero Corporate Services Pvt Ltd said it is not only a big boost to the Make in India policy but would also help create jobs.

Venugopal Dhoot, Chairman, Videocon Industries believes the scheme is sure to benefit multinationals that have huge manufacturing facilities in India, along with Indian companies.