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Focus: GS-II Indian Economy

Why in news?

The Ministry of Railways has written to the Department for Promotion of Industry & Internal Trade, Ministry of Commerce and Industry, seeking exemption for procuring certain medical items manufactured outside India, particularly medicines used in the treatment of COVID-19, cancer, etc.


  • The issue was first flagged in August 2020 by Northern Railway, which formally wrote to the Railway Board, expressing difficulty in procuring drugs and surgical items in the light of the latest ‘Make in India’ policy.
  • It said that certain drugs used in cancer treatment were manufactured outside India but available in the Indian market through agents or dealers.
  • Besides a surgical implant, the letter said that suppliers of anti-viral medicines used for the treatment of COVID-19, and even the vaccine for the coronavirus, may not fall under the Class-I or Class-II categories, which is required for purchases under the new ‘Make in India’ guidelines.

Class-I or Class-II according to DPIIT

  • Going by the Department for Promotion of Industry and Internal Trade’s (DPIIT) norms, Class-I is a local supplier or service provider whose goods, services or works offered for procurement have local content equal to or more than 50%.
  • Class-II is a supplier or service provider whose goods, services or works offered for procurement have local content of more than 20% but less than 50%.
  • Only these two categories of suppliers shall be eligible to bid in the procurement of all goods, services or works and with estimated value of purchases of less than ₹200 crore.

Make in India

  • It is not a scheme rather an initiative which was launched on September, 2014 with the objective of facilitating investment, fostering innovation, building best class manufacturing infrastructure, making it easy to do business and enhancing skill development.
  • The initiative is further aimed at creating a conducive environment for investment, modern and efficient infrastructure, opening up new sectors for foreign investment and forging a partnership between government and industry through positive mindset.

Make in India 2.0

  • Make in India initiative has made significant achievements and presently focuses on 27 sectors under Make in India 2.0.
  • The Department for Promotion of Industry and Internal Trade (DPIIT) is coordinating action plans for 15 manufacturing sectors
  • Department of Commerce is coordinating action plans for 12 service sectors.
  • At the same time, investment promotion and facilitation activities under the Make in India initiative are being undertaken by several Central Government Ministries/ Departments and various State Governments from time to time.

-Source: The Hindu

February 2024