This strategy to localize the supply chain is also helping companies exploit economies of scale and flex their bargaining power (on account of bulk purchases) in India.

For example, Coca-Cola India exports commodities and materials such as tea, coffee, polyethylene terepthalate polyester (PET) resin, closures, crowns and labels to its global operations. LG manufactures PC monitors and refrigerators in India to avoid high import tariffs. Meanwhile, a high degree of localization has enabled Ford to keep its manufacturing costs low. Ford India's localization program crossed the 90 percent mark in 2003.