“Global Automotive Supply chain Challenges & Opportunities– Inching Towards Aatmanirbhar Bharat” Conference (GASCO Con) on Wednesday & Thursday, 9th & 10th November 2022. "Global Automotive Supply chain Challenges : Integrating Global + Local Shifting to Glocal - A Move for Aatmanirbhar Bharat"

1. GASCO Con 2022

2. Global Supply Chain advanced due to Globalization and Increasing Free Trade among
Countries. Globalization undoubtedly has many Advantages & Benefits of Better Access and
Integration of Supplies at Global Level. However, Globalization & Global Supply Chains are
more Prone to Supply Chain Disruptions. COVID Pandemic’s impact on global trade and
Supplies is so devastating that it has exposed the Fragility of the Supply Chain and proved to
be a Real Test of Corporate Ingenuity, Resilience and Flexibility to face the Crisis.
So, Businesses have started looking for Offshore to Nearshore and Local Sourcing.
In this Presentation, Let’s Discuss on Concept of “Glocal” – a Combination of Global &
Local, and how it embraces Global Mindset, Reach & Access, but also Accommodate &
Promote the Values, Cultures, Ideals, Interests and Needs of the Local Businesses.
GASCO Con 2022

3. 4
A supply chain is a Chain of Supplies - is the Network of all the individuals, organizations, resources,
activities and technology involved in the Creation and Supply of a Product, from the Point of Source to the
Point of Consumption through Series of Supplies with Value Creation at each Stage that is from Supplier
to Manufacturer to Distributer to Wholesaler to Retailer and Eventually Delivery to the End User or
Consumer.

4. 5
Supply Chain Management (SCM) can be defined as Management of the Supply
Chains as an Integrated Process of Acquisition and Management of Flow of
Supply of Goods and Services from the Point of Origin to the Point of
Consumption and Delivering Further Value Added Output to the Next Level
Point of Consumption (like from supplier to manufacturer to wholesaler to
retailer and to final consumer) by Balancing Supply and Demand with Optimal
Management of Resources with the objective of establishing relationships
for Maximizing Value for Mutual Benefits on Economically, Socially and
Environmentally Sustainable basis.
(As defined by the Author SN Panigrahi in his Article “Value Insights into Supply Chain” Published in
Aug’2010 issue of MMR – IIMM)

5. 6
Materials Flow
Forward Logistics - Materials Movement – Supplier to Customer
Reverse Logistics – Sales Returns : Customer to Supplier
Information Flow
Product Data, Descriptions & Pricing & Offer- Bills of Materials, Invoice
Customer Enquiry / Order Information, Delivery Scheduling
Financial Flow
Credit Notes – Payments for Quality Claims & Damages
Consideration for Materials Supply – Debit Notes –
Late Fee for Release of Payments Due
Value Flow
Value Addition in Supply : Inputs to Production - Distribution
Customer Feedbacks – Improvements - Relationships
Risk Flow
Demand, Supply, Price, Lead Time, etc
Cash Flow Constraints, Inventory Financing & Delayed payment

6. Global Supply Chain advanced due to Globalization and Increasing Free Trade among
Countries.
In the economic context, Globalization refers to the Process Characterized by
Liberalisation, Borderless Globe opens up new markets with Free Trade Flow of
Capital & Financial Products, Investments, Goods, Services, Technology,
Information and Human Capital across National Boarders with Increased
Interaction, Integration and Interdependence among the Nations around the Globe to
Foster Easy Access to Foreign Resources, better Exchange, Movement and
Cooperation of Businesses, Organizations, and Countries to built Economic
Partnerships for Mutual Benefit and Facilitate Common Good based on Competitive
Advantage of each Participating Nations or Regions.
GASCO Con 2022

7. Globalization enables access to Global Talent, Materials, and Products that
were otherwise out of reach. Globalization can enrich Business Processes by
offering companies a wider more Abundant Pool of Resources to pick from.
Cross Boarder Information Flows may Promote Growth. Globalization
Encompasses Growth on a Worldwide Scale.
In the past few decades we have witnessed growing globalization as more
countries and regions of the world become intertwined Politically, Culturally
and Economically.
GASCO Con 2022

8. Globalization evolved and advanced on the premises of basic concept of Comparative Advantage
which is defined as Ability of a Country to Produce and Sell Goods and Services on an
International Scale more Efficiently and Inexpensively than another.
As Technology, Infrastructure, Transportation Systems, and Communication Systems, Economic,
Political, and Cultural Exchanges have improved, competition among different countries has soared.
Globalization leads to increased competition. Competition in global business environment occurs
when different nations offer interchangeable services or products or other resources. National
Competitiveness is a country’s ability to sustain and increase its share of international markets
and at the same time to improve its people’s quality of life.
Among governments, there is a growing tendency to experiment with various policies intended to
promote national competitiveness—from efforts to manage exchange rates to new measures to manage
trade to policies to relax antitrust.
GASCO Con 2022

9. National Competitive Advantage is measured by a set of factors, policies, and institutions that
determine a country's level of productivity and competitiveness.
There are Four broad Attributes of a National Competitive Advantage :
❖ Factor Conditions (The Factors of Production, such as Natural Resources, Skilled Labor or
Infrastructure);
❖ Demand Conditions ( The nature of home-market or Domestic Demand);
❖ Related and Supporting Industries (The presence or absence in the nation of supplier
industries and other related industries that are internationally competitive);
❖ Firm Strategy, Structure, and Rivalry (The conditions in the nation governing how companies
are created, organized, and managed, as well as the nature of domestic rivalry).
GASCO Con 2022

10. According to prevailing thinking, Government Policies, Institutions,
Infrastructure, Innovation, Technology Development & Absorption, Macro-
Economic Stability, Health and Primary Education, Higher Education and
Training, Market Size, Market Conditions & Efficiency, Labour Market
Efficiency (Labour Cost), Financial & Capital Market, Interest Rates,
Exchange Rates, Economies of Scale, Country’s overall Business Networks
and Supporting Industries are the most potent determinants of competitiveness.
It is a relative concept. It is an approximation of a country's ability to grow and to
compete with other countries for human capital, investments, and other resources.
GASCO Con 2022

11. 2. Multinational Corporations are Gaining Advantage showing their Mighty Power as a Result of Globalization.
4. Heavy Dumping of Products from Developed Countries – Trade Inflows far Exceeding Outflows.
6. Growing Inequality - Unbalanced & Uneven Development among Nations.
8. Globalization has failed to Protect Workers & Human Rights.
10. Trade Imbalance – Many Countries Fallen into Debt Trap – Imports Exceeding Exports.
1. Markets Opened-up – Captured by Advanced Economies.
3. Smaller Businesses are being faced with Constant Threat & Cop by Larger & Multinational Giants.
5. Traditional Products, Practices Cultures are slowly being Vanished.
7. Low-cost or Cheap Labor Marketplaces are being Exploited and Oppressed.
9. Disproportionate Increasing of the Unemployment Rate – Shift of Job Markets.
11. Environmental Depletion – Excess Exploitation of Natural Resources from Under-Developed & Developing Nations.
12. Trade Distortions (War, Pandemics, Unfair Trade Practices, Trade Barriers etc) may Disturb the Flow of Supplies.
13. Cyber Attacks, Information Leakage, National Security Threats – Conflicts between Nations – Terrorism.
14. Financial Instability due to Volatile Foreign Capital Flows and Threats to the Global Environment.
15. Compulsive Following of Certain Compliances Forcibly Imposed which may be against the Interests of Native Country.
GASCO
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12. Globalization & Global Supply Chains are more Prone to Supply Chain
Disruptions.
A Supply Chain Disruption is any Sudden Change or Crisis – be it Local or
Global – that Severely Impact the Supply Chain Activities, Processes and
operations.
Supply chain disruption is defined as a Major Breakdowns in the Production or
Distribution / Supply and other Major Functions of a Supply Chain that
Challenges your business’s ability to Plan, Source, Make, Deliver and / or Sell
Products and other Transactions when an External Force Acts upon beyond the
Control of the Business.
The Adverse Impacts of Supply Chain Disruptions may in Certain Cases
overshoot the Benefits of Globalization.
GASCO Con 2022

13. 14
Strategy & Implementation Risk
Inaccurate Planning and Forecasting
Mismatch of Plans & Actual Demand
& Supply;
Natural Disasters;
Environmental Issues
Pandemics &
Health Issues
Market Demand & Supply
Risks & Price Fluctuations
Supply Chain Security
Cyber Attacks
Logistic Disruptions
Failures & Delays
Supplier Bottlenecks
Tier – 1, 2, 3 etc
Quality Issues, M/C Breakdown,
Halting Production; Performance
Risks or Process / Tech. Problems
Legal & Regulatory
Restrictions &
Compulsions
Political Geopolitical
Instability:
War, Civil Disturbances,
Strikes
GASCO Con 2022

14. In the aftershock of the COVID-19 epidemic, followed by many other events
like Suez Canal Supply Crisis, Russia – Ukraine War, Escalation
of Tensions & Disputes between China-Taiwan; Cold Trade war between
USA & China etc Disrupted and Continue to Upset the Supply Chain Leading
to Risks in Terms of Delivery, Quality, Costs, Service Performance,
Supplier & Customer Relationships.
These Supply Chain Disruptions Reflect as Decreased Productivity, Increased
Costs, Non-Availability of Inputs & Raw Materials, Delayed Deliveries or Non-
Deliveries, Stockouts and Loss of Revenue, as well as Loss of Customer Trust
- Rising Customer Dissatisfaction; Cash Flow & Financial Problems, Closure
of Businesses or Insolvency, and more and many Economic Fall outs.
GASCO Con 2022

15. The coronavirus pandemic and subsequent other events are forcing companies to make a Trade-off between
Efficiency and Resilience in Global Supply Chains.
These Adverse and Unfavourable events Triggered Disruption of the Global Supply Chain - hampered
factory operations and sown chaos in Global Supply Chains – Damaged many economies around the
world.
we have seen Shortage & Stockout Situations for many items including very Essentials like Food,
Groceries, Household supplies, Medical, Personal Protective Equipment’s (PPE), Cloths and so on. With
Lead Time Issues, Uncertain Demand & Deliveries – All the Supply Chain Targets & Measures gone
awry.
Govt. Regulations / Restrictions for Mobility, Lockdowns, Increased border controls and customs
regulations result in longer wait times, and lack of capacity for long-haul and last-mile fulfillment etc apart
from overall Economic slowdown, Short Supplies, Labor Non-availability, Health Issues and Severe
Financial Crisis created extreme challenges - challenges of keeping the businesses running & keep
them stable.
GASCO Con 2022

16. Pandemic’s impact on global trade is so devastating that it has exposed the
Fragility of the Supply Chain and proved to be a Real Test of Corporate
Ingenuity, Resilience and Flexibility to face the Crisis.
So, Businesses have started looking for Offshore to Nearshore and Local
Sourcing to offset and Counterbalance the Adverse Impacts of Global
Sourcing and the Associated Supply Disruptions. Among Businesses, there is a
growing Tendency to Explore & Experiment with various Policies and Strategies
Intended to Promote & Strengthen Local Competitiveness.
GASCO Con 2022

17. 18
GASCO Con 2022

18. Encourages Local Suppliers - Develops Local Competitive Advantage.
Localization ensure Less Distortions in case of Supply Chain Disruptions as there is limited movement of people and
goods in a limited local area.
Better Utilization of Local Resources & Value Creation Locally.
Local Resource Engagements & Creation of Better Employment Prospects for Local Talent.
Balanced Development of Local Economy & Growth.
Avoids Skewed Economic Growth on Misconceived (Not the True Sources) Concept of Competitive Advantage and
Concentration of Development in Few Pockets of Developed Nations.
Reduced Dependency on Supplies from Oversees.
Saves Foreign Currency Outflow – Strengthens Balance of Payment Position of the Native Country.
Decrease of Trade Barriers – Avoids Trade Restrictions, Constraints between Nations.
Creates a Long Term Business Eco-System with Supporting Supply Bases in the Local and Native Country.
Shorter Distances for Shipments & Transportation – So Less Consumption of Fossil Fuel, as a Result Lesser Emissions &
Pollutions and Greater Environmental Concerns.
GASCO Con 2022

19. Like there is Two Sides of a Coin, either Globalization & Localization both have Advantages &
Disadvantages.
In the name of Globalization, Allowing Free Entry of all for all with Boundaryless Borders making Homes
turf a Dumping Ground is Not a Good Economics. Skewed and Concentric Economic Growth with too
much Specialization in Certain Regions or Countries is Antithesis of Liberalization. Corona Exposed
Weak and Fragile Points of Globalization. Semiconductor Chip Shortage – Reaching Crisis Point
Worldwide really Exposed as a finer Example of shortcoming of Globalization, calling for now to
Localize.
Similarly Inward Looking, Closed Economy with Entry Barriers and too much Controls on Foreign Entry
and Excessive Protection to Domestic Industry, naturally Limits & Constraints Growth & Progress.
The opposite of Economic Globalization—or Free-market Trade Across Borders—is Localization – a
Protectionism, an economic policy that attempts to protect domestic businesses from foreign
competition and labor markets, usually by imposing trade barriers like Tariffs and Restrictions.
GASCO Con 2022

20. Both Extremes of Globalization and Localization have Consequential Dangers to Damage &
Jeopardies the Economies.
Rationally, Balancing both Globalization & Localization, proves beneficial for the Nations by
taking Advantages of Globalization through Liberal and Free Trade with some Limitations &
Cautions and at the same time taking due consideration of the Domestic Industry and
Business by Strengthening them and Reasonably Protecting and Sheltering Native Industry
from Foreign Cop is a Wise & Balanced Approach.
The term ‘Glocal' combines the words Global and Local. Embracing Glocal means that you
have a Global Mindset, Reach & Access, but you also Accommodate & Promote the Values,
Cultures, Ideals, Interests and Needs of your Local Businesses.
GASCO Con 2022

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22. Glocal – A Concept of Self-Reliance with Local Strengths and Global Access, Trading Freedom and
Liberal Integration.
Self-reliance is the Ability and Independence to Do Things and Make Decisions by a Nation on its Own,
without Coercive and Forcible Gravity from other Nations or any Organizations to Influence the Key
Decisions.
Four mutually reinforcing factors (5 C’s) that determine a country’s self-reliance:
Capacity &
Capability
Competence
Collaboration
Compliance
Commitment
Glocal, Aligns the Local Aspirations and Development with Global Integration without Sacrificing Self-
reliance, Self-sufficiency based on Local Strengths, Independence, Autonomy of Native Nations.
GASCO Con 2022

23. Glocal, in Essence is aligned to “Atmanirbhar Bharat
Abhiyan” - “A Call to the Nation for Self - Reliance”
by our Visionary Prime Minister, Shree Narendra
Modi Ji exhibiting his leadership ascent during Critical
Crisis Situation of COVID.
This Concept of “Atmanirbhar” (Self-Reliance)
envisioned to be built on Five Pillars – Those are the
Key Areas to Strengthen the Nation:
➢ Economy,
➢ Infrastructure,
➢ A system driven by Technology and forward-
looking policies, Demography, and
➢ Economic Demand.
GASCO Con 2022

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25. The Vision of Modinomics is
Perform
Reform &
Transform
Reflecting True Vision to Strengthen the
Nation’s Economy through Self-Reliance.
Atmanirbhar Bharat Abhiyan lays strong
foundations to for raising our economic
growth and long-term sustainability
through our Strengths focused on Land,
Labour, Liquidity and Laws.
Democracy, Demography and Dynamism
are shaping our Destiny today.
GASCO Con 2022

26. Prime Minister Narendra Modi pitched for the use of products manufactured in the country, saying
the novel coronavirus outbreak has taught us the Importance of Local Manufacturing, Local
Market and Local Supply Chain.
"In times of crisis, this local has fulfilled our demand, this local has saved us. Local is not
just the need, it is our responsibility also," he said in his address to the nation.
The prime minister said Indian has to become “Vocal for their Local", not only to buy local
products, but also to promote them proudly, in essence "we must make the local as a mantra of
our life".
"The global brands were sometimes also very local like this. But when people started
using them, started promoting them, branding them, felt proud of them, they became
global from local products," he said.
GASCO Con 2022

27. While delivering the Inaugural Address at CII Annual
Session 2020, Getting Growth Back, through video
conference, Prime Minister Narendra Modi on 2nd
June’2020, listed five things that will help India
mitigate the impact of the coronavirus pandemic and
bring back the country to a high growth trajectory.
The theme of the annual conference was “Building India
for a New World : Lives, Livelihood, Growth”
“To bring India on the path of rapid development,
Five Things are very important to build a self-
reliant India - Intent, Inclusion, Investment,
Infrastructure and Innovation,” the PM said
Intent
Inclusion
Investment
Infrastructure
Innovation
GASCO Con 2022

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➢ The PLI scheme was conceived to scale up domestic manufacturing capability, accompanied by higher
Import Substitution and Employment Generation as a part of Atmanirbhar Bharat’s domestic
manufacturing expansion strategy.
➢ The government has set aside Rs 1.97 lakh crore under the PLI schemes for various sectors and an
additional allocation of Rs 19,500 crore was made towards PLI for solar PV modules in Budget 2022-23.
➢ Launched in March 2020, the scheme initially Targeted Three Industries:
➢ Mobile and allied Component Manufacturing
➢ Electrical Component Manufacturing and
➢ Medical Devices
➢ 10 More Sectors were Added in November 2020 (Including Automobiles & Auto Components: Department
of Heavy Industry)
➢ One more Sector Added in September 2021 (Drones and Drone Components: Ministry of Civil Aviation)
➢ Total Now the Scheme is Applicable for 14 Sectors.

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❖The incentives, calculated on the basis of incremental sales, range from as
low as 1% for the electronics and technology products to as high as 20% for
the manufacturing of critical key starting drugs and certain drug intermediaries.
❖In some sectors such as advanced chemistry cell batteries, textile products
and the drone industry, the incentive to be given will be calculated on the basis
of sales, performance and local value addition done over the period of five
years.

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The Production Linked Incentive (PLI) Scheme for Automobile and Auto Component successful in
attracting proposed investment of₹ 74,850 crore against the target estimate of investment ₹ 42,500
crore over a period of five years.
75 Applicants approved under “Component Champion Incentive Scheme”; 20 Applicants were earlier
approved under “Champion OEM Incentive Scheme”.
Proposed investment of ₹ 29,834 crore expected from approved applicants under Component Champion
Incentive Scheme.
Incentive upto 18%, to encourage industry to make fresh investments in indigenous supply chain
of Advanced Automotive Technology (AAT) products of PLI Scheme for Automotive Sector.
PLI scheme for Automobile and auto components and PLI for ACC along with FAME Scheme to enable
India to leapfrog to environmentally cleaner, sustainable, advanced and more efficient Electric Vehicles
(EV)based system.
Major boost to Hon’ble Prime Minister Narendra Modi’s Make in India and AtmaNirbharBharatAbhiyan.
https://pib.gov.in/PressReleasePage.aspx?PRID=1806077

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❖ Champion OEM Incentive Scheme:The Champion OEM Incentive scheme is a ‘sales
value linked’ scheme, applicable on Battery Electric Vehicles and Hydrogen Fuel Cell
Vehicles of all segments and any other Advanced Automotive Technology vehicle prescribed
by MHI depending upon technical developments.
❖ Component Champion Incentive Scheme:The Component Champion Incentive scheme
is a ‘sales value linked’ scheme, applicable on pre-approved Advanced Automotive
Technology components of all vehicles, CKD/SKD kits, Vehicle aggregates of 2-Wheelers,
3-Wheelers, passenger vehicles, commercial vehicles and tractors including automobile
meant for military use and any other Advanced Automotive Technology components
prescribed by MHI depending upon technical developments.
https://pib.gov.in/PressReleasePage.aspx?PRID=1757651

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Determined Sales Value (in
Rs Crore)
Incentives
(%age of Determined
Sales Value)
<= 2,000 13%
> 2,000 to 3,000 14%
> 3,000 to 4,000 15%
> 4,000 16%
Cumulative Determined
Sales Value of Rs 10,000
Crore over 5 years
Additional 2%
Incentive Slabs for Champion OEM and
New Non-Automotive (OEM)
Investor Company
Determined Sales Value (in
Rs Crore)
Incentives
(%age of Determined
Sales Value)
<= 250 8%*
> 250 to 500 9%*
> 500 to 750 10%*
> 750 11%*
Cumulative Determined Sales Value
of Rs 1,250 Crores over 5 years.
Additional 2%
Battery Electric vehicles & Hydrogen
fuel cell vehicles components
Additional 5%
Incentive slab for Component Champion and New
Non-Automotive (Component)
https://pib.gov.in/PressReleasePage.aspx?PRID=1757651

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The Government approved the Production Linked Incentive (PLI) Scheme for Automobile and Auto
Component Industry in India for enhancing India’s Manufacturing Capabilities for Advanced
Automotive Products (AAT) with a budgetary outlay of ₹25,938 crore.
The Production Linked Incentive (PLI) Scheme for Automobile and Auto component industry
proposes financial incentives to boost domestic manufacturing of Advanced Automotive
Technology (AAT) products and attract investments in the automotive manufacturing value chain.
Its prime objectives include overcoming cost disabilities, creating economies of scale and
building a robust supply chain in areas of AAT products.
It will also generate employment. This scheme will facilitate the Automobile Industry to move up the
value chain into higher value-added products.
https://pib.gov.in/PressReleasePage.aspx?PRID=1806077#:~:text=The%20Government%20approved%20the%20Production,outlay%20of%20%E2%82%B925%2C938%20crore.

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PLI Scheme for
automotive sector
(₹25,938 crore)
PLI scheme for Advanced
Chemistry Cell (ACC)
(₹18,100 crore)
Faster Adaption of
Manufacturing of Electric
Vehicles (FAME) (₹10,000
crore)
These Schemes will enable India to leapfrog from Traditional
Fossil Fuel based automobile transportation system to
Environmentally Cleaner, Sustainable, Advanced and more
Efficient Electric Vehicles (EV) based system.
https://pib.gov.in/PressReleasePage.aspx?PRID=1806077#:~:text=The%20Government%20approved%20the%20Production,outlay%20of%20%E2%82%B925%2C938%20crore.

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The PLI scheme for Automobile and Auto Component Industry has been a huge success
in terms of the applications received from local as well as globally headquartered
groups engaged in / proposing to manufacture Advanced Automotive Technology
vehicles / products.
Apart from Indian business groups, approved applicants include groups
from countries such as Japan, Germany, USA, UK, Republic of Korea,
Ireland, France, Belgium, Netherlands and Italy.
The overwhelming response shows that Industry has reposed its faith in India’s stellar
progress as a world class manufacturing destination which resonates strongly with
Hon’ble Prime Minister’s clarion call of Atma Nirbhar Bharat - a self-reliant India.
https://pib.gov.in/PressReleasePage.aspx?PRID=1806077#:~:text=The%20Government%20approved%20the%20Production,outlay%20of%20%E2%82%B925%2C938%20crore.

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India has over 6 Crores MSMEs across manufacturing and services sectors which employ over 11 Crores people. MSMEs also
contribute immensely in exports from the country. The MSMEs are spread in every nook and corner of the country. However, one of the
biggest challenges faced by MSMEs in India is the inadequate availability of capital. MSMEs have limited access to external
equity primarily because only a handful of players provide early stage equity capital. Even if the equity is made available, the uptake
would remain low.
Setting up an MSME fund in the name of SRI (Self-Reliant India) Fund would squarely address these challenges, give them a thrust to
break their barriers, encourage corporatisation and allow them to grow to their full inherent potential. It is a form of Category II Alternative
Investment Fund (AIF).
SRI Fund will be a combination of Mother/Daughter Funds which will leverage private equity/ other funds and thus will multiply the impact
of the initial budgetary infusion. Mother Fund will provide funds only to the Daughter Funds for onward investment as growth capital, while
the investment in MSMEs will be done by the Daughter Funds under the Fund. Both the Mother and Daughter Funds will be duly
registered as Alternate Investment Funds with SEBI.
SRI fund is implemented by a special purpose vehicle, NSIC Venture Capital Fund Limited, which is a 100 per cent subsidiary of National
Small Industries Corporation, an mini-Ratna under the ministry.
The government is the sole anchor investor in SRI fund with the initial budgetary support of Rs 10,000 crore and aims to invest Rs
50,000 crore as the mother fund, while the rest is expected to come from daughter funds that will raise capital from outside sources
such as banks, financial institutions, private equities and venture capital investors.
The first set of 88 MSMEs have been funded and we invested roughly Rs 200 crore and private sector invested Rs 1400 crore –
Total Rs 1,600 cr support.

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The overall Logistics Cost is about 14% of GDP, significantly higher than that of
many other countries.
Transporting goods by Rail Costs 45% less (on a per tonne, per km basis)
compared to road, but three-fourths of all goods are sent across the country by
road because of the inefficiencies in rail transport.
The government has come up with one answer to this problem—a network of multi-
modal logistics parks (MMLPs).
In 2018, an average freight train emitted around 18 grams of carbon dioxide
per tonne-kilometer. The emissions of an average truck were much higher:
112 grams of CO2 per kilometer. The Umweltbundesamt, the environmental
department of the German government, made this calculation.

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1
2
3
4
5
6
To Promote Inter-Modality, Multi-modality
through seamless integration of processes,
Digital Systems, Policies / Plans and
Legislative Requirements.
To Promote and Ensure optimal
utilization of logistics
infrastructure/assets/facilities
through synergetic usage
Of Physical Assets, Processes,
Taxonomy, benchmarking of service
quality standards, in the logistics
sector.
To Promote Inclusivity by
Addressing Needs of Logistics
Supply and user side (agriculture
and manufacturing sector and
internal and external trade) and
encourage public-private
participation. .
To promote greater adoption of
information communication
technology, upgraded infrastructure,
use of drones, automation, innovation,
green logistics, international best
practices and facilitate integration with
global value chain.
To Reduce Fragmentation in
the sector, Promote
Excellence, Mainstream
Logistics in Higher
Education, upskilling and
Re-skilling of existing
workforce.

41. Targets for achieving the vision of the National Logistics Policy are to
According to a new report by Arthur D Little and the Confederation of
India Industry (CII), India’s Logistics and supply chain costs currently
amount to a staggering $400 billion, up to 14 percent of the GDP, 9
percent of China and an average of 8 percent recorded by the US and
Europe. Compared to the global average of 8 percent, India’s logistic
cost has raised a competitiveness gap of approximately $ 180 billion!
GASCO Con 2022

42. Improvement in
Inventory
Management
Improved efficiency
in regulatory matters
& order processing
Logistics
Performance Index
(LPI)
Reduction in
logistics costs
Improvement in
Transportation
Improvement
in warehousing
Development of Data
Driven systems GASCO Con 2022

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➢Railways
➢Roads
➢Ports
➢Waterways
➢Airports
➢Mass
Transport
➢Logistics
Infrastructure

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Self-reliance in defense is of vital importance for both Strategic and Economic Reasons, hence building an
indigenous defense potential is essential. The presence of robust security architecture is primary for India’s
geopolitical ambitions and against hostile neighbours’ actions.
A country like India with its immense potential and strategic location requires to be self-reliant, hence it is
important to pursue the idea of indigenization.

47. 09-11-2022 GASCO Con 2022 48
Military expenditure (% of GDP) in India
was reported at 2.8827 % in 2020,
according to the World Bank collection of
development indicators, compiled from
officially recognized sources.
World Bank Report on November of 2022.
India's defence budget is about 13% of central
government's total expenditure. That's roughly
~ 2.9% of India's GDP.

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2019-20 : Capital Expenditure on Imports - Rs 38,156 crore - 41.89% of the Total Capital
Procurement.
2020-21 : Capital Expenditure on Imports - Rs 42,786 crore – 36% of the Total Capital
Procurement.
2021-22 : Capital Expenditure on Imports - Rs 39,650 crore - 35.28% of the Total Capital
Procurement.
Defence Minister Rajnath Singh told Lok Sabha – 29th July’2022
India spends around 3% of GDP on defense and 60% of that is Spent on Imports.

49. Self-Defense
Strategic
Advantage
Technological
Advancement
Economic
Drain
Employment
SN Panigrahi
GASCO Con 2022

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The Government has taken several policy initiatives and brought reforms to promote self-reliance in defence
manufacturing. These policy initiatives are aimed at encouraging indigenous design & development,
innovation and manufacture of defence equipment in the country, thereby reducing dependency on imports
in long run.
1. DPP-2016 has been revised as Defence Acquisition Procedure (DAP) 2020, which is driven by the tenets of
Defence Reforms announced as part of ‘Aatmanirbhar Bharat Abhiyan’.
2. In order to promote indigenous design and development of defence equipment ‘Buy {Indian-IDDM
(Indigenously Designed, Developed and Manufactured)} category has been accorded top most priority for
procurement of capital equipment.
3. Ministry of Defence has notified ‘First Positive Indigenisation List’ of 101 items on 21st August 2020 and ‘2nd
Positive Indigenisation list’ of 108 items on 31st May 2021 for which there would be an embargo on the import
beyond the timelines indicated against them. This is a big step to promote indigenization in defence sector.
4. Notified a Positive Indigenization list of sub-systems/ assemblies/ sub-assemblies/ components of
DPSUs on 27th December 2021. The list contains 2,500 items, which are already indigenised and 351 items for
which there would be an embargo on import beyond the timelines indicated against them.

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5. The ‘Make’ Procedure of capital procurement which is aimed at encouraging
design, development and manufacture of defence products by Indian private
industry with a minimum of 50% Indigenous Content (IC) on cost basis of the
total contract value., primarily for import substitution, has been simplified.
6. Enhanced FDI in Defence Sector up to 74%; Innovations for Defence
Excellence (iDEX) - creation of an ecosystem to foster innovation and
technology development; Technology Development Fund (TDF) to encourage
participation of public / private industries especially MSMEs; Establishment of
two Defense Industrial Corridors, one each in Uttar Pradesh and Tamil Nadu
to attract investments of Rs 10,000 Cr in each corridor by year 2024-25.

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India's defence exports have grown eightfold in the last six years -- from Rs 1521 crore in 2016-17 to Rs 12,815 crore in
2021-22.
"The major contribution in this growth has come from the private sector. During 2021-22, the private sector has
contributed almost 70 per cent of the total exports.
According to the details provided by Singh, contribution of the private sector in India's defence exports in 2016-17 was Rs
194 crore while the total value of exports was Rs 1,521 crore.
In 2017-18, the value of India's total exports was Rs 4,682 crore including Rs 3,163 crore worth of exports by the private
sector.
The contribution of the private industries went up to Rs 9,813 crore in 2018-19 while the total volume was Rs 10,746 crore.
In 2019-20, the total exports were valued at Rs 9,116 crore out of which Rs 8,008 crore was from the private sector.
The volume of exports in 2020-21 was Rs 8,435 crore which included the contribution of Rs 7,271 crore by the private
industries.
The total defence exports went up to Rs 12,815 crore in 2021-22 out of which Rs 8,800 crore was contributed by the
private sector, the details furnished by Singh showed.
" About 80 countries import Indian defence equipment, sub-systems, parts and components.”
Defence Minister Rajnath Singh told Lok Sabha – 29th July’2022

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54. 09-11-2022 GASCO Con 2022 55
The pace of national highway (NH)
construction in the country had
touched a record 37 km per day in
2020-21, it had slowed to 28.64
km a day in 2021-22, due to
COVID-19 pandemic-related
disruptions and a longer-than-
usual monsoon in some parts of
the country.

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56
Vande Bharat Express, previously known
as Train 18, is a semi-high-speed, electric
multiple unit train operated by the Indian
Railways on 4 routes as of October 2022. It
was Designed and Manufactured by
the Integral Coach Factory (ICF)
at Perambur, Chennai under the Make in
India initiative.
Vande Bharat Express has better energy
efficiency and passenger riding experience with
several unique features like bio-vacuum toilets,
Wi-Fi onboard, fully automatic doors etc.
Vande Bharat Express is capable of running at
a maximum speed 160kmph.

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57
Modern Coach Factory (MCF) / Rae Bareli has
signed a ToT (Transfer of Technology) contract with
M/s Dawonsys, South Korea for Design,
Development, Manufacturing and Testing of
Aluminium Body passenger coaches.
The use of Aluminium Body coaches in these new
generation energy efficient Vande Bharat train sets
will also be considered to the extent possible.
Rolling Stock to be procured for Mumbai-
Ahmedabad High Speed Rail (MAHSR) (Bullet
Train) will be having Aluminium Body coaches.

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Railways’ First Indigenously Manufactured Aluminium
Goods Train Rake was Flagged off from Bhubaneswar in
Odisha on Oct 17, 2022.
Made in collaboration with Besco Limited Wagon Division
and aluminium major Hindalco, the Rakes are Lighter - 180
tones lighter; Needs Low Maintenance, & have a
higher payload over the current conventional rakes.
It also has a lower carbon footprint for every 100 kg of
weight reduction in wagons. The lifetime carbon saving was
eight to 10 tonnes and this meant, saving of more than
14,500 tonnes of CO2 emissions for a single rake; have
more carrying capacity, consume less energy and are
corrosion-resistant.
They are 100% recyclable and even after 30 years, they will
be as good as new.

58. Global Supply Chain advanced due to Globalization and Increasing Free
Trade among Countries. Globalization undoubtedly has many Advantages
& Benefits of Better Access and Integration of Supplies at Global Level.
However, Globalization & Global Supply Chains are more Prone to Supply
Chain Disruptions. COVID Pandemic’s impact on global trade and
Supplies is so devastating that it has exposed the Fragility of the Supply
Chain and proved to be a Real Test of Corporate Ingenuity, Resilience
and Flexibility to face the Crisis.
So, Businesses have started looking for Offshore to Nearshore and
Local Sourcing.
GASCO Con 2022

59. Glocal – A Concept of Self-Reliance with Local Strengths and Global
Access, Trading Freedom and Liberal Integration with Limitations.
That means Glocal is a Combination of Globalization & Localization
- Thinking Global & Acting Local – Developing, Supporting Local
Industry & Business to attain the Global Level.
Developing Self-Sufficiency, Self-reliance, Strong Domestic Industry,
Increase Competitiveness, Independence to Nations with Collective
Cooperation among the Nations, Global Reach & Access,
Knowledge & Information Sharing, Exchange of Goods & Service
etc are the Glocal Mantras. These will Ensure Healthy Growth of the
Nations, Collaborative Engagement among the Nations, Mutual
Cooperation & Trust.
GASCO Con 2022

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