Not Swadeshi, Samarthya is the answer to India’s Economic Nationalism

The roots of swadeshi lie in the triple whammy encountered by 19th century India.

First, European colonialism resulted in the loss of political power to a foreign race and a sense of being dominated by the British overlords. The Raj was resolute in keeping Indians as subjects and away from the corridors of political, bureaucratic and military power. Britain saw itself as lord and the Indian colonies as subject – and the people of India were clearly aware of it. The seeds of Indian economic nationalism lay in the resistance to being ruled by foreign overlords and in the rejection of their norms.Second, the era of globalisation and free trade of the mid-19th century affected economic players in different ways. Traders from communities that were capable and did not impose social restrictions on travel could benefit from national and international trade. The majority of the population, however, was unable to adapt to the changes in the international economic pattern and faced intense competition from foreign imports. The colonial government was unconcerned about helping this population make the transition and improve its productivity and competitiveness.

Third, the Industrial Revolution transformed the relative competitiveness of goods produced in Britain and India. Not only were imported goods better than domestic products, they were cheaper. India did not industrialise in the 19th century because the colonial government either actively discouraged it, or failed to create the environment for it. Another reason is that Indian society was unable to create effective mechanisms to convert savings into capital and allocate it effectively.It was in this broad context that the disempowered elites of a subordinate polity sought to change consumer preferences – the only area they had influence over. We see this in the early phase of swadeshi, which was mostly pursued through increasingly organised social mobilisation.Read the full article in ThePrint