Contradiction in terms

Context: A careful analysis of contradiction in PM’s self-reliance is needed to differentiate it from self-centeredness. 

Various contradictions:

• Self-reliance vs self-centeredness: It should not end up with high cost and substandard manufacture

• Instead have multiple sources of supply and avoid over-dependence on single country (70% of the Active Pharmaceutical Ingredients are imported from China)

• Global Supply chains vs local production: India cannot aspire to be a part of global supply chains without attracting investors. 

• The objective should be to promote globally competitive manufacturing.

• FDI vs tariffs: foreign producer will not have any incentive to bring more technology while there are high import tariffs meant to protect domestic companies. 

• Consistency demands favoring domestic products, but also domestic producers.

• Local vs global: Too much insistence on local may be a detrimental to the economy. 

• Asian economies became competitive by learning to sell in global markets. Local supply chains will flourish in a fully integrated national market

Way Forward:

• Adding 6th pillar of ‘Democracy’: to the 5 pillars of self-reliant economy suggested by PM consisting of economy, infrastructure, tech-driven system, vibrant demography, and demand. 

• Specificity in reforms: related to 4 ‘Ls’, land, labour, liquidity and legal framework.