Over the last thirty years India have had an outward looking economic policy, under all Governments, that has yielded us definite, tangible benefits. We have become more globally competitive, opened up to global investments, joined global supply chains and are steadily on course towards realising our potential as an economic powerhouse.
How can it be any other way? How can India be the global player, that it strives to be, if it aspires only for strength that wilts in the face of global competition. Self-reliance is a position of strength, not that of weakness. Finance Minister, Nirmala Sitharaman’s observation that there is nothing wrong with imports (from any country), as long as those help boost jobs and incomes in India, brings some welcome perspective to correct the impression, in some circles, that Atma Nirbhar (self-reliant) means import substitution. Or for the uninitiated, boycott of anything that has a foreign connection, even if made in India. If we hope to be part of new global supply chains, we sharpen our competitive edge, not turn protectionist. At this juncture, if we turn inwards, how do we expect export markets around the world to open up to our produce. If India wants companies to relocate from China and divert investments into the country, it must become more competitive and not turn insular.
In principle, forcing local produce compete with the rest of the world, in local markets, will make it globally competitive. This in my opinion is the idea behind “vocal for local”. I am inquired about my position on ‘vocal for local’ at various industry forums, in my social exchanges or during media interactions. I represent a global company, the biggest in the sector, operating in many countries, contributing to the GDP of all those countries. My take is simple. A successful global company is a local wherever it functions. My company, though a global conglomerate, is registered in India, guided by Indian laws, pays taxes, creates direct and indirect employment, sources raw material in India and in the end serves the discerning Indian consumer. It touches lives of millions of Indians from the farmer to the consumer. Vocal for local is a call for utilising global expertise to create value and happiness for the local populace. It is not a call for isolation.
The key to self-reliance in domestic industry is competitiveness. Competitive, profitable and responsible growth, is what we should aim for. A protected market not only dampens the competitive edge and the consumer pays for inefficiencies, it creates an anti-export bias and hampers quality and efficiency improvements. Cost of production cannot be increased through dearer inputs and infrastructure so that major sections of the population can be subsidised. So go on, enter the competition!
Rajiv Mitra
Rajiv Mitra is the CEO & Director, Prabhat Dairy, part of world’s largest dairy company, Lactalis. Mitra is a commentator on social and economic affairs, member & office bearer at several industry bodies, on advisory boards of post-graduate institutions, MSMEs and start-up companies and a keen mentor to students and professionals.
