India’s Economic Independence and Global Challenges
The celebration of our nation's independence starts on August 9th, and all of you are free-thinking citizens of a liberated India. Under the tricolour flag, you are commemorating independence in your respective domains, and I am also celebrating the freedom of expression through writing. Now, let's discuss economic freedom. This week marks 78 years since India gained independence from British rule. We have undoubtedly achieved significant progress over these years. Indians have made their presence felt globally, and there is no path of advancement that we are not pursuing. Naturally, this success may incite jealousy, and some may attempt to hinder our progress, eyeing our economic resources with greed.
Institutions like the World Trade Organization have become ineffective and can no longer offer protection, raising the question of how we should navigate the current circumstances. Currently, the entire world is affected by US tariffs, and we are among the most impacted nations. As I write this column, the US tariff has increased from 25 to 50 percent. This means that if India exports goods worth Rs 100 to the US, a tax of Rs 50 will be imposed there. Consequently, Indian products will become more expensive in the US, leading to a decline in demand.
The United States accounts for 18 percent of India's total exports, which means the tariff will undoubtedly impact us. This situation raises concerns about India's economic autonomy, as America seems intent on controlling it. I believe that India's pursuit of freedom is unsettling to some, and they aim to hinder our progress in various sectors. A recent example comes to mind: our rapidly expanding industrialists, such as Ambani, Adani, Sajjan Jindal, Tata, Birla, and others. Adani had climbed to the second position globally, but those who were displeased began leveling allegations against him to create significant difficulties. There was a widespread fear that if he traveled to London, Europe, or countries influenced by America, he would face arrest.
Today, various adversaries of India are attempting to undermine it in different ways. Previously, Trump imposed a 145 percent tariff on China, which responded strongly. Ultimately, Trump had to relent. Although I am not an economist, my experience as a journalist, politician, and industrialist allows me to analyze the situation. I believe the United States has been interested in India's agriculture and dairy sectors for many years. Agriculture accounts for about 14 percent of India's GDP and provides 42 percent of employment. The dairy sector contributes slightly over 5 percent, and when including animal husbandry and related industries, it employs 8.5 percent of the population. India leads the world in milk production, contributing 23 to 24 percent of global output. The U.S. ranks second, but there is a significant difference between the milk produced in both countries. In the U.S., animals are fed meat for protein, whereas India's milk-producing animals are vegetarian.
Now see what is the difference between the agriculture and dairy sector in both the countries? In India, the agriculture sector gets very little help but the government is kind to the farmers in the US in terms of grants, technical assistance and loans, that is, the US agriculture sector and its farmers are very resource-rich compared to India, not only the US, many countries including European countries and China give subsidy on agriculture. In such a situation, if the US agriculture and dairy industry gets permission in India, then our farmers will not be able to survive in the market. The economic freedom of Indian farmers will be looted.
As far as China's attack on our economic freedom is concerned, we Indians have become alert but still the Indian market is filled with Chinese products. Our cottage and small industries are not able to end the empire of China in the Indian market. We have definitely moved forward in the direction of the Make in India slogan given by Prime Minister Narendra Modi, but still a long distance is yet to be covered. Only the far-sighted policy of the government and the hard work of the common man can change the situation. Even now the attitude of bureaucracy has not completely changed. Until we increase the productivity and quality of labour, we will not be able to become competitive on international issues. We will have to take care of quality in every field and then no one will be able to stop us. I was reading the story of America's progress and that incident came to my mind when after the economy collapsed, John F. Kennedy told the Americans that at this time you should not think what America can give me, think what you can give to the country? Only after that America's fortunes changed.
In the context of India, we must adopt a similar mindset. We should elevate our status to such a level that even potential aggressors hesitate multiple times before acting. China is strong, and we have shown America its place. We need to move beyond the Panchsheel principles and embrace a more assertive stance. This reminds me of an episode from Ramcharit Manas, where Parshuram attempted to intimidate Lakshmana with his axe, and Lakshmana responded, 'No one here is as weak as a pumpkin that wilts at the sight of a finger.' We must remember that India holds vast potential. Examining the economic history of the past two thousand years reveals that for the first 1500 years, India's contribution to global production averaged 46 percent.
Even when the British enslaved India, the contribution was 23 percent, by the time they left, the contribution decreased to 2 percent. We took care of ourselves and today we have reached the fourth position in the world economy. Keep in mind that India buys the most gold in the world today and I would advise the forces that are attacking our economic freedom not to underestimate the power of India. India was a sleeping elephant, it has woken up. It has started moving at a great pace. It will neither stop, nor bow down and will not be afraid…. Jai Hind!