Re: Billionaire Motilal Oswal goes ‘vocal for local’; buys Tata Safari The entire debate on swadeshi versus videshi remains not so well informed. The argument for self sufficiency and policies built around it, made us what we were till the 80s. So a new industry of license quota permit raj opened up, and Indian businessmen made money at our expense as we could not import better, cheaper products from outside. Cars, fridges, electronics, radios sets, scooters, tractors, trucks, buses, trains, FMCG items, white goods... list will go on and on. And we had to keep enriching desi businessmen who would pocket monopoly profits on licenses and quotas and keep the political wheels well greased.
It is always good to be proud of our rich culture, heritage, customs, language, arts and craft. But we should not equate production of goods and services with our historic legacy. Two different things.
In today's time there are no "pure" Indian products. Tata is an Indian product just because it is owned by and Indian group and Hyundai and Maruti are not, when they have given exceptional products, invested billions, exported good numbers, paid enormous taxes and gave livelihood to millions? Discovering an Indian made Suzuki in South American countries or Australia is what makes me proud and not because brand does not have an Indian origin.
We should be self reliant or even self sufficient in certain critical items of defence , public health, certain food items of critical nature etc but not all. Sure fire recipe of higher prices and poor quality products.
Foreign trade 101 will tell you that promoting swadeshi ignoring the comparative advantage in good and services is unhealthy in short, middle and long term.
If US had promoted swadeshi would our IT services had become so big? They figured out that we could do it cheaper and then better and later faster. The richer countries are also the ones that trade extensively, across the globe and the poorest like North Korea have all the shackles on trade. |