The self-sufficiency hypothesis is that some of the value created by local consumption trickles down the supply chain to the domestic manufacturing ecosystem – and ultimately down into workers’ pockets.
Indian consumers will purchase over 150 million room ACs over the next 10 years, representing a conservative retail value of approximately 5,10,000 crore Indian Rupees.
The self-sufficiency hypothesis is that some of the value created by local consumption trickles down the supply chain to the domestic manufacturing ecosystem – and ultimately down into workers’ pockets. This is then recirculated into the economy through further consumption. Additionally, long-term ecosystem benefits like domestic IP creation and exports, while harder to quantify, are likely to create value in orders of magnitude greater than vanilla import substitution.
Source: Financial Express
