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To give his ‘Make in India’ campaign a push, Prime Minister Narendra Modi wants the Reserve Bank of India (RBI) to turn ‘Swadeshi’ by ensuring that the security paper and the ink used for printing currency notes are manufactured domestically.
“Can we not take a pledge that from a certain date onwards the paper and ink used to print our currency are both Indian?
“Does it look nice that the picture of the Father of the Nation, who fought for ‘swadeshi’ (self-sufficiency), should be printed on ‘videshi’ (foreign) paper?” Modi observed at a function to commemorate the completion of 80 years by the Reserve Bank of India.
According to Reserve Bank of India report, the various Security Presses in the country supplied 20.918 billion banknotes in FY2014 against 19.103 billion in the previous year.
A senior RBI official said almost 80 per cent of the notes are printed on imported cotton-based paper.
“Are there no industrialists in India who can be told to put up a factory to produce currency-grade paper as well as ink? They can be given money (loans) to establish these facilities. They can source technology globally.
“Our currency (paper) and ink should be Hindustani . Make in India begins from here. I believe the RBI should consider this as its responsibility and take up leadership in this regard. We can do it,” said Modi.
Big consumer Due to the sheer size of India’s population and the quantum of banknotes that are required to be put into circulation every year, the country has emerged as one of the world’s biggest consumers of the ingredients that go into production of banknotes, a top RBI official said in a speech last year.
“In keeping with the magnitude of the banknotes that are put into circulation, the corresponding need to import other machinery for processing, detection and destruction of the bank notes is also humongous. Thus, India is a very significant market for the suppliers of all ingredients and equipment, which form the entire ecosystem of the banknote production and destruction process,” he explained.
The international banknote industry, comprising various manufacturers of machines, paper, ink and security features, is estimated to be worth around $28 billion.
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