No China good mantra to guide govt portal
After making it mandatory to display country of origin while registering new products on the government’s e-commerce platform, the Centre has sent out feelers to key government departments and ministries against purchasing products from Chinese vendors.
The communication has been kept “informal” as banning purchase of country-specific products would be in violation of the World Trade Organization (WHO) rules, said a government source privy to the development. According to
him, the message has gone out to at least two dozen government organisations, ministries including Income-tax department, Customs & Excise, Central Board of Indirect Taxes and Customs, postal department and even regulators.
All central and state government departments, as well as related public sector agencies are mandated to directly purchase common-use goods and services solely through the Government e-marketplace (GEM). On this platform, sellers have to register and compete with others in an openmarket model. Last week, GEM, a special purpose vehicle under the Minister of Commerce & Industry, was told that any new product on the portal must mention the country of origin. The feature was added to guide a buyer better, officials said.
“Such directives are significant amid growing call to promote local suppliers and boycott Chinese goods,” said another source. Even states have been sensitised against Chinese goods and services on the portal, it is learnt. These departments typically purchase stationery, cleaning equipment, daily essentials, appliances and automobiles, among other things.
As of Monday, the portal showcased 1.85 million products and services. With 399,639 sellers and service providers, it has seen ~55,379-crore worth of transactions till now.
This is among the measures taken by the government recently to not just encourage ‘Make in India’ but also reduce imports from China.
revenues in at least six years. For comparison, these companies’ combined revenue had declined by 4.7 per cent YOY during Q3 FY15 due to a slump in commodity prices that year. Analysts say the unprecedented decline in corporate profitability is largely due to a growing mismatch between revenues and costs. For example, the combined operating expenses for companies excluding finance and IT firms, including salary and wages, raw materials, and overheads, was down just 1.9 per cent YOY during Q4 against a 49 per cent decline in operating profit during the quarter. Fixed costs such as interest and depreciation were up 9.2 per cent and 12.1 per cent, respectively, leading companies to losses.
In all, 442 companies in the entire sample reported pre-tax loss during Q4FY20 while another 453 companies reported YOY dip in PBT during the quarter. The remaining 379 companies, accounting for around 30 per cent of the sample, reported improvement in PBT.
Tata Consultancy Services was the top earner during the quarter with PBT of ~10,512 crore down 1.8 per cent YOY, followed by Reliance Industries at ~9,223 crore (down 33.4 per cent) and HDFC Bank at ~9,174 crore (2.5 per cent). However, eight out of 10 most profitable firms during the quarter reported YOY decline in PBT, indicating the financial challenge for India Inc in the forthcoming quarters when the full impact of Covid-19 lockdown will show.