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Union Budget 2024-25 likely to go vocal for higher local procurement

Greater local content norms may kick in first in steel, chemicals, pharma sectors

Budget
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Asit Ranjan Mishra

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To boost domestic manufacturing under the Make in India initiative and reduce dependency on imports, the government is expected to announce in the Budget an increase in the minimum local content requirement for public procurement, with certain sectors being granted exceptions.

Currently, firms producing goods, services, or works with at least 50 per cent local content are classified as Class-I local suppliers and are preferred the most in government procurement. Class-II local suppliers, whose goods, services, or works have 20-50 per cent local content, receive second preference. Non-local suppliers, with less than 20 per cent local content,

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First Published: Jul 09 2024 | 11:39 PM IST

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