Paper: GS – III, Subject: Economy, Topic: Trade and External Sector, Issue: Swadeshi in present times.
Context:
Themes of Make in India, Vocal for Local, and Atmanirbharta (self-reliance) are central to PM Narendra Modi’s economic vision. Reinterpretation of Swadeshi in present times align with global integration while avoiding an autarkic (closed economy) approach.
Key Highlights:
Historical Context of Swadeshi:
- Swadeshi movement (during colonial period): Promoted self-reliance, symbolized by Mahatma Gandhi’s charkha (handspun wheel).
- Aim: Resist colonial economic domination and foster indigenous production.
- Present usage: Encourages buying Indian goods, but with a modern, globally linked outlook.
Current Economic Context:
Role of Trade & Globalization:
- Trade contributes 45–50% of India’s GDP.
- India is a global hub for export of software services and Global Capability Centres (GCCs) conducting R&D and employing Indian talent.
- Despite this, India’s manufacturing share in GDP remains 14%.
Challenges in Manufacturing:
- Heavy reliance on imported parts and supply chains especially for mobile phones, EVs.
- Fully indigenous supply chains would shrink output instead of growing it.
Nuanced Interpretation for present times:
Pragmatism in Self-Reliance:
- PM stated that: “It doesn’t matter whose money is invested… the sweat of my countrymen has gone into production.”
- It shifts focus from ownership of capital to domestic job creation.
- Avoids autarky and welcomes foreign investment while ensuring local employment.
- Self-reliance doesn’t mean closing borders and being open to FDI, global partnerships, and transnational supply chains.
- Emphasis is on Indian labour, talent, and value addition within global systems.
Geopolitical Dimension of Swadeshi:
- The present idea of Swadeshi is in response to US tariff aggression (50% tariffs on Indian exports).
- Instead of retaliation, emphasis is on encouraging Indians to buy Indian goods and sending a signal to global investors of India’s openness.
- It balances economic nationalism with global engagement.
Conclusion:
Modern reinterpretation of swadeshi promotes self-reliance with openness. Policy must balance domestic job creation, integration into global economy and strategic geopolitical positioning.
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