The Hindu Business Line : Evolution of the `swadeshi' idea

There is little doubt that the repositioning of the `swadeshi' concept in its `saffron' avatar is the result of a watering down of the original "Be Indian, Buy Indian" orientation.

THE word "swadeshi" is back in the limelight once again, and there is a conscious effort by the BJP and its leading lights to reposition the concept.

The important issue, of course, is not the repositioning itself — which is not without a great deal of interest considering the heritage of the term which goes back to the days of pre-Independence nationalism — but the timing of the attempted repositioning. Like everything else during a period when elections are around the corner, does the timing have anything to do with extracting the maximum mileage from the electorate?

The short answer is yes. This is because the BJP, being an average political party having the sole objective of getting into the seat of power in New Delhi, will do any and everything in its power to attain its objective — even if, in the process, it has to ally itself with political parties which do not share with it its three major policy objectives, namely, abrogating Article 370 which deals with the temporary special position of Jammu and Kashmir in the Constitutional scheme of things, introducing a uniform civil code, and constructing the Ram temple at Ayodhya. In fact, it is but only natural to expect that the BJP would like to wield power all by itself.

But if it finds that it cannot do so because of current political compulsions, it will have no hesitation to ride piggyback (as it has already done) on a diverse collection of political parties which together can scrape up the requisite numbers in the Lok Sabha.

Careful compromise with basic principles, therefore, is very much a part of the BJP's arsenal in its quest for single-handed majority rule.

If this is accepted, is the timing of the repositioning of the "swadeshi" concept the latest example of such political tactics, the objective being to make its interpretation of "swadeshi" (remember the attacks on an American company's retail outlets in Bangalore some years back?) more acceptable to the electorate at large at this point of time?

This question has to be left unanswered because of the churning within the BJP itself and also perhaps in the larger Sangh Parivar on fundamental issues of policy, a churning which is gradually being strengthened as the BJP comes face-to-face with the prospect of attaining an absolute majority in the Lok Sabha (which, on an objective reading of the evolving political situation, is still some way off).

To return to the subject of "swadeshi", there is little doubt that the repositioning of the concept in its "saffron" avatar is the result of a watering down of the original "Be Indian, Buy Indian" orientation, which was suitably clothed in a nationalist garb which really was directed against the invasion of the domestic economy by foreign goods (the Bombay Club of the mid-1990s and all that). That broad policy was the result of the need to protect the domestic investor-trader nexus which provided the main source of support for the Sangh Parivar (and therefore the BJP) within the country. But things have moved on from that early position, not least because of the intimate experience with the compulsions of governance which the BJP has had over the past five years.

In a recent interview, the Finance Minister, Mr Jaswant Singh, has given his view of what "swadeshi" means, a view which seems eminently reasonable but which may not be quite liked by the "hardliners" within the Parivar, whose one-point programme is to sever all links with the World Trade Organisation.

His basic orientation as far as "swadeshi" is concerned is to take the Indian flag to foreign shores and, in the process, establish the country's presence in the world at large. Trying to explain the interface point of swadeshi with globalisation, Mr Jaswant Singh said: "Look at what is happening in the knowledge industry. You will see the classical example of meeting the demand for asserting ourselves and reaching out to the world and registering our presence through globalisation. Today the Indian enterpreneur is celebrated. Look at Tata buying Daewoo... Reliance buying Flag...Pharma is moving out. Research is moving out. This is swadeshi. Indian companies are moving out and getting globalised." Basically, this is an aggressive form of economic nationalism which flows from the strengthening of one's own economy an integral part of which is the effective working out of the internal reforms process.

To focus on the reforms issue, consider what Mr Ratan Tata has to say vis-à-vis Tata Motors' acquisition of Daewoo Commercial Vehicles (DWCV) in Korea. Among other things, he said: "Even five-six years ago, we could not have undertaken a DWCV because the regulatory system would not have allowed us to structure a financial deal as fast and as readily as now. It is now easy and painless to look at a bona fide acquisition (which) is a function of the reforms in the country".

If this is the "swadeshi" of the Sangh Parivar, hardly any right-thinking Indian will have a quarrel with the concept. But is it? Mr Jaswant Singh feels that this indeed is what the Sangh Parivar means when it tomtoms the idea, the focus clearly being on the evolution of the concept since the days of the Mahatma who "used it as (an instrument of) rebellion against the imperial assertions". Stating the obvious that "ideas have relevance only if they evolve", the Finance Minister says that in recent years, "swadeshi" has shed its old garb and has emerged "as a reaction to the domination of industrial powers".

It is clear that the gap between this interpretation of the current meaning of "swadeshi" (as explained by Mr Jaswant Singh) and a protectionist state policy to keep out the industrial powers from setting up economic base in the country is very narrow indeed, as is the opposition to the WTO which is seen (quite erroneously) as being the facilitator of such an invasion.

What does the election manifesto of the BJP (named the Vision Document) have to say on the subject? A whole lot considering the fact that it comprises an 11-page section in a 40-plus-page document.

But what is the spirit of the "swadeshi" policy that the BJP would like to follow when it comes to power (on its own and not as a part of the NDA).

The document says: "Swadeshi simply means `India First'. This is the governing principle of all nations. Now the idea of Swadeshi is being accepted in most quarters, also by the Indian industry. Nevertheless, the economy of India has come under tremendous pressure because of misguided tariff reductions and an uneven playing field for the Indian industry. The BJP is fully aware that, when it comes to power, it will be inheriting a badly managed economy and a badly directed reform process. The broad agenda of the BJP will be guided by Swadeshi or economic nationalism."

It adds that the basic approach of the BJP would be to "develop a collective national will and confidence that `India shall be built by Indians'", and that national development would "largely depend upon national effort and national capital and savings".

Foreign capital would be "of little value to the national economy though crucial to some sectors like infrastructure". FDI flows would be allowed into select priority areas (like infrastructure, export promotion and high-technology industries) and not into areas "where the domestic industry is functioning well".

Further, till the Indian economy attained "a level of global strength, takeovers of existing Indian companies by foreign companies (would) not be encouraged".

As far as international trade is concerned, the manifesto states that all nations "compulsively resort to quotas, tariffs and anti-dumping measures to protect their national interests" and that "while the declared agenda is free trade, the undeclared, but actual, agenda is economic nationalism". India too would have to follow "its own national agenda".

As regards the WTO, the manifesto has been forthright in saying that the "highly prejudicial WTO conditionalities" would have to be challenged in view of the fact that the major task facing the country was to "(preserve) a measure of autonomy in the management of the national economy".

Considering all this, has the idea of "swadeshi" really evolved since the days of the Mahatma? If it has, is the new interpretation a step forward for the nation, or does it constitute a giant leap back into the world of obscurantism, which could do immense harm to the national interest if implemented faithfully by a future BJP Government at the Centre?

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