In November 2015, the Government of India formulated a policy for according preference to the government procurement of electronic goods that are manufactured domestically.

According to the news reports, this campaign, referred to as “Make in India,”

promotes economic strength and a more robust standing in the global market.”

Do you think the Indian government spending constrained by this national preference policy has a bigger effect on Indian output than unconstrained Indian government spending? What could happen if this policy is extended to the overall government spending?