The pandemic of COVID-19 put an abrupt block on the supply and value chains thus making the worldwide production level almost jammed. Today when the overall environment is brimmed up with uncertainty, the local small scale industries that have experienced a major setback due to this pandemic require to be taken care of with much more strength and effort as compared to the normal times.
Amidst these tiring and uncertain times the ‘Vocal for Local’ campaign by the honorable Prime Minister of India Mr Narendra Modi brought out the hope for these Indian brands. Grabbing this opportunity they put the reputation of their brand in lieu with the campaign. The strategy for marketing by large scale industries was promptly revised and concentrated all their efforts on themes such as ‘Indian and Indigenous’. Historically in 1905 the Swadeshi Movement for self reliance has after a whole century has taken the form of the Make in India campaign 2014 and Vocal for Local campaign, 2020.
The Vocal for Local campaign reflects the India’s yearning for self-sustenance, potency and self determination. This campaign inculcates the close association with start-ups that have originated locally and flourish the sense of ownership of a brand. When India got into the unfamiliar and pristine state because of COVID-19 pandemic it was the efforts of entrepreneurs who carried out the supply. Their potential and capabilities were displayed with prominence and it derived the requirement to exploit this potential by embracing and assisting these brands on the national grounds.
The large scale industries retorted fast in response to Prime Ministers` summons but the ones to be benefitted through this campaign are the MSME – Micro, Small and Medium Enterprises. In order to resuscitate the economy during Corona outbreak in the country, a financially boosting package of the value of Indian rupees twenty lakh crores, chalks out the initiatives which have a direct positive impact on the MSME’s.
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The mitigating measures comprise of subordinate debt to help stressed out enterprises, collateral free loans and equity infusion. Other than the monetary matters, MSMEs is following the re-establishment so as to remain flexible. The substantial yield in terms of economy for productions is an invaluable contribution by MSMEs. In order to hold their specific identity in the market MSMEs must integrate the structural seasoning with the intensification of the brand.
The economically deprived units like real estate, power distribution and non-banking finance companies received a lot of attention. The target is to boost up two lakh start ups and a stipulation of Rupees twenty thousand crore is accelerated towards subordinate debts. In addition to this government has issued rupees four thousand crore to Guarantee Fund Trust for Micro and Small Enterprises (GTMSE)
Vocal for Local campaign is an extension of 2014 campaign of Make in India, the prime aim of which was to empower the production and manufacturing within the country. As it is a result oriented and well structured campaign the major stanchions for the Make in India campaign are the skill development, innovation, funding, intellectual excellence as well as the infrastructure, and these have the capability to draw out the prime opportunities for investment in India. A very refined policy that provides education and relays the latest progressions in projects, policies and schemes to the potential investors so as to assist in doing business comfortably and bring out the fresh initiatives.
The major point that will be taken due care is the production of the substitutes for those products that are at present being imported. The ultimate aim of this is the tapping up the export market through these products. Either it is about manufacturing the layout plan or transforming the investment patterns in India, the Make in India campaign is totally successful. Its major follow up the Vocal for Local campaign takes forward the same emotion to set up the reputation of the brand regarding goods produced in India, thus piling up all the optimism which was created because of the campaign.
Following the change now the MSME has been defined as
- Micro-enterprises- amount of investment of industry upto Rs 1 Crore, production and service enterprises having turnover >Rs 5 Crore
- Small Enterprises- industries with investment upto Rs 10 Crore and turnover upto Rs 50 Crore, and
- Medium Enterprises- amount of investment of industry upto Rs 20 Crore towards production of goods and services enterprises having turnover upto Rs 100/ Crore
There is a criticism trending that the Vocal for Local campaign would make India lag behind from globalization, but this is not correct. India had already registered its presence at the global level. The Vocal for Local campaign in no way targets to substitute the overseas brands, rather its main aim is the promotion of Indian brands. All that this campaign offers is towards locally borne innovations and fresh ideas for building the strong sense of brand-ownership.
“These times of crisis have taught us the importance of going local about buying products, local is what will save us. Even in these life-altering moments, we should not forget our goals. It is time to be vocal for local,” Mr. Modi said.
As the lockdown is receding and the level of patriotism being high at present for the customers stepping out in the markets, going global from local has become hassle free for the startups in India. Hence, Vocal for Local is significantly of positive impact and beneficial for startup environment in the Indian context as most of the startups are a part of MSME that can flourish to a specific extent without having to lose the MSME tag.
It also provides tremendous chance for the startups to get global from local and to amalgamate themselves with the Global Value Chain (GVC). In India the pandemic created an opportunity for business to apprehend the campaign and persist through these tough times. The malfunction in the supply network during the lockdown all over the country revealed feebleness in the business atmosphere.
Going ‘Vocal for Local’ is as requisite on personal grounds as it is on a national ground. In order to bloom for these brands being ‘vocal’ about ‘local’ is taking a stand for skill and intrinsic entrepreneurship. Being determined to make India independent, self-sufficient and self-reliant once again, it is mandatory to encourage the innovative ideas that emerge from within our nation.