Little to be vocal about local

Context: With reference to India-China standoff, India should develop a holistic approach assessing foreign policy, military and economic challenges.

Challenges to India in Present situation: 

• India has lost its position from the league of the top three fastest-growing economies to 23rd rank. (Economist magazine).
• A sudden disruption of supplies from China and Chinese investments would exacerbate immediate economic crisis.  

• Not in real competition with china: Most of the Indian unicorns (start-ups with a valuation of $1 billion) have Chinese investors backing them. 

A holistic approach must include: 

• Infrastructure (Human and physical) Investment rather than military alliance: India needs investment in technology, manufacturing, infrastructure.
• Economic Rejuvenation:

• “Last and final call” for Atmanirbhar: The people deserve to produce and buy mosquito racquets and mobile phones and get employed in manufacturing facilities that thrive in their own market. 
• Dealing with crony-capitalist: 

• The privatization of a certain oilfield and later its resale to an MNC is an illustrative example. 
• Such holding operations or Benami transactions do not create industrialists and entrepreneurs. ( In Marxian terminology: comprador bourgeoisie)

• Foreign Policy lessons from the past: 

• Ensuring Sovereignty: India did not allow its territory to be used by foreign powers during the Cold War, unlike Pakistan, and remained immune to external interference.
• Aspect of Realism (Kautilya): A neighbour can never be an ally (1962 war). China wants an unequal relationship with its neighbours. 

Way forward: Promote indigenous entrepreneurship:

• A new perspective about the value of manufacturing over trading, entrepreneurship over crony capitalism is very much needed. 
• Need for new generation of capitalists (middle classes) who lose their jobs and their buying power. 
• Easy entry, exit, and labour policies as in the best-performing economies.