Last couple of months were full of chaos due to COVID-19 and the preventive lockdown. This lockdown brought out the best and the worst of us, also highlighted strengths and weakness of our society and the system. Several big and small organizations and individuals came forward to contribute in the fight against the pandemic. From donating money to the government funds and NGOs working for the poor, some heros took to the streets helping the needy with all their might.
COVID-19 and the preventive lockdown has not only affected our work but has also drastically hampered our economy. Again, Indians came to the rescue of the Indian economy, organizations of India like TATA Group, Mahindra, Reliance Group and others came forward. If you notice one thing, in the end "it were only Indians who thought of and supported their country".
In this post we will discuss how our small steps can contribute to our country's growth and why should we prefer using Indian products on very first priority.
- Supporting Economic Growth
Did you know that everytime you buy a foreign product you are supporting much to the economy of the foreign country and less to your own country. The major reason why foreign countries setup industries and work out of India is because it's cheap with context to workforce and other resources. They get to operate in less cost (Manufacturing, Transporting, Maintaining) hence they save a lot of money. How are we victims here? We are so obsessed with branded products that we forget to purchase products of our own country. Even a small step of yours from switching buying foreign products to buying Indian products can help us stabilize and develop our economy a lot . Here's what happens when you purchase a foreign product (Please note: We are using demo numbers here for a better understanding). Lets say i purchase a brand new phone which is not Indian and costs me around 20,000.
- Out of this 20,000 (18% tax goes to the Indian government) i.e 20,000 - 3600 now becomes 16,400
- Out of 16,400 let's say manufacturing cost is 8000 i.e 16400 - 8000 now becomes 8,400
- Out of 8,400 some marketing and transportation cost is 3000 i.e 8400 - 3000 now becomes 5,400
- Paying the efforts cost, retailer cost and other charges cost is 2000 i.e 5400 - 2000 now becomes 3400
For every single product it has a profit of 3,400, now let's say 40,000 people purchase it so 40000 x 3400 now becomes 13.6Cr and if the number of consumers increase the profit margin would even go higher. If we buy an Indian product the amount of profit that foreign products are gaining will stay in India and help support our own economy. Outer countries try to tap India just because of 3 things, less operating margin, maximised profit margins and rest the consumers would do the work.
- Generating Job Opportunities
If we support buying products from our own country, we will have a surge of demand for our own products, leading to job opportunities, economic growth which enables us to not only buy those products in our country but might happen we can start exporting it as well. Which opens a big door for trade opportunities. There are thousands / lakhs of people who are unemployed due to less jobs / opportunities. By supporting our own products we can help each other, who knows were might be helping our self.
- Competitive Environment with Other Countries
We support our products i.e we support our economy which makes our backbone strong and help us compete with other countries. Yes political relations are must but it is also necessary that a country like India should not only try competing but should compete. GDP boosts when the economy is strong, the economy is strong because we are supporting more local products, you see the chain / loop goes on to the source, isn't it strange?
- Development of Our Country
Ok, lets start a walk through on this section in a recursive manner, why is American($) dollar always high? Here's a support to it; In developing countries like India which is still growing, estimation processes can vary as much as 20%, due to demographical variations. Also, to meet the various demands of consumers, when we import more goods, we also import inflation, increase our export bill, reduce our GDP, give out our Forex which inturn put pressure on the currencies and reduces our Percapita GDP.
I'm not saying boycott foreign products, all i am saying is it only takes 1 step to make a change, a change that would help us at our bad times, which would help our own people. We purchase cars like BMW, etc. Let's ask ourself, how much have these companies contributed to India for COVID-19? We guess none. But, diamonds like TATA Group, Reliance Group, Mahindra and many more contributed to the COVID-19 situation. Making this big change won't happen in a day, but surely down the line in a year i hope you will also support your own economy. We have started the initiative from our side. Are you willing to start? Are you willing to support your own country? Are you willing to make India the old "Sone ki Chidiya"? We leave the decision upto you, because #EkKadamMeraTumhara
Special Thanks to Deepak Jangid for valuable contribution to this Article, we really appreciate your efforts and time.