Prime Minister Narendra Modi has called on Indians to purchase local goods this Diwali. The prime minister earlier this week vouched for local and handmade products over imported goods and urged Indians to prioritise shopping from their local markets on the occasion.
Not very long ago, Indian markets were seen flooded with Chinese products in Diwali season. Though that is still the case with some products, there is also a visible shift on the ground. Consumers are today more aware and are hesitant to buy Chinese goods. With every Diwali, the “Made in India” campaign gathers more traction among Indians. The government’s aggressive push for “Vocal for Local” has been at the root of this phenomenon.
This year, PM Modi has asked Indians to share selfies with local products or artisans on his NaMo App through Made-in-India smartphones. Some of these selfies will be shared by him on social media as well. PM Modi recently said, “Like every time, this time too, in our festivals, our priority should be ‘Vocal for Local’ and let us together fulfil that dream, our dream is ‘Atmanirbhar Bharat’. India is becoming the biggest manufacturing hub of the world.”
Echoing Local in Every Purchase
Data says these calls from the prime minister and the government are being paid heed to by consumers. Reports say that as Indians choose domestic goods over imported ones, China is expected to incur a substantial loss of around Rs 1 lakh crore in Diwali-related business this year. This was also the case last year, showing Indians’ desire to buy local goods increasing year-after-year.
Take the example of decorative lights. Chinese lights used to end up in nearly all Indian homes during Diwali season. Now, Made in India lights are a sensation, and customers are increasingly looking to buy lights made domestically. Indian lights are known to be of better quality and durable compared to Chinese lights. Indians are also opting for desi variants of Diwali lanterns for the same reason now. Sales of traditional diyas have reportedly shot up by a third.
Apart from the glamour and glitz of Diwali, India’s Khadi sales and growing toy industry are other examples of how ‘Vocal for Local’ has really taken off. In the last fiscal, India’s Khadi and village industries set a record turnover of Rs 1.34 lakh crore. Just to put this figure in perspective, the turnover of the Khadi industry in 2013-14 was just Rs 31,154 crore. There has been a whopping 332 per cent rise in indigenous Khadi products made by artisans in rural areas.
Similarly, PM Modi’s ‘Vocal for Local’ campaign has also been rewarding for India’s toy industry. Toy imports, especially from China, have dipped 57 per cent since 2018-19 to just $158.70 million in FY23. Indian toy exports, on the other hand, have surged 60 per cent to $325.72 million. On this front too, PM Modi has been pushing Indians to opt for toys manufactured domestically.
First Local, Then Global
Today, most Indians are conscious of the fact that India’s markets get flooded with Chinese goods, and that they must shop wisely to give a fillip to local manufacturers. Many Indians are choosing domestic goods over imported ones due to two main considerations: first, buying Indian goods is now viewed by many as a patriotic duty. Second, many small artisans and sellers depend on the Diwali festivities to earn a significant portion of their annual income, and therefore, Indians feel a sense of moral responsibility to buy from them. PM Modi has played a pivotal role in recent years to campaign for Made in India goods and has popularised the slogan “Vocal for Local” to unite Indians behind SMEs and artisans.
He had already laid the foundations for the next big leap for the Vocal for Local campaign in September. He has added a new component to the slogan – Global. PM Modi says locally-made goods should now reach global markets, and Indians must popularise Indian goods around the world by embracing such products themselves first.
As India seeks to become a global manufacturing hub in the coming years, manufacturers must scale up operations. For this, there needs to be strong momentum in the domestic market and a healthy demand for goods outside India. The Vocal for Local call seeks to address this very issue and make a mass movement out of Indians buying local goods.
To that effect, India now has something called the ‘One District One Product-Districts as Export Hubs’ (ODOP-DEH) initiative. This initiative aims at fostering balanced regional development across 734 districts, while promoting one product from each district. In July, MoS Food Processing Prahlad Singh Patel had announced that 137 unique products had been notified under the One District One Product (ODOP) program. These will be the flagship products of their respective districts, and special focus will be laid on manufacturing these products and helping them find a market around the world.
Can Patriotism Trump Discounted Imports?
While calls like “Vocal for Local” indeed leave an imprint in consumers’ minds, challenges persist. One major issue is that Chinese goods are often way cheaper than those manufactured in India. This often dictates purchase decisions, especially in rural areas where income is lower. China can afford to flood foreign markets with cheap products, while Indian manufacturers struggle to balance volume with price point.
In FY 2022-23, for example, India’s merchandise exports reached $451 billion. But, out of 766 districts, just 10 constitute 41 per cent of the country’s exports. Programmes like ODOP will surely take time, and expecting immediate gains will not be wise.
Meanwhile, festivals like Diwali have become occasions to celebrate India’s journey as a manufacturing power. All that Indians need for Diwali can be, and mostly are, made in India. As such, opting for imported products, especially those from rival nations like China does the nation no good. Indians have understood the need to practise the Vocal for Local slogan, which is why many consumers today seek to specifically buy Made in India goods for Diwali. The Vocal for Local slogan is helping capitalise the untapped potential of 1.4 billion Indians to create a robust domestic ecosystem for local goods – and power India’s economic growth.
Views expressed in the above piece are personal and solely that of the author. They do not necessarily reflect News18’s views.
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