Strategic Resilience Over Blanket Swadeshi

The Economic Survey suggests that not all import substitution is beneficial or supports long-term competitiveness. It advocates for strategic Swadeshi, where domestic production is feasible but hindered by non-economic factors. The focus should be on innovation, competitiveness, and global integration rather than complete self-reliance.

The Economic Survey highlights the nuanced perspective on import substitution, stating that not all forms are beneficial for sustainable competitiveness in domestic industries.

It notes that while Swadeshi is essential, it should not be applied indiscriminately. Protectionist policies can lead to inefficiency and reduce competitiveness at a global level.

The Survey calls for a strategic shift towards innovation and global integration, emphasizing the role of MSMEs in moving towards more significant participation in export-linked supply chains.

(With inputs from agencies.)