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Economic Survey 2025-26: Is Globalisation Ending? India Pushes Swadeshi Strategy
Increasing export controls, the withdrawal of developed countries from technology sharing, and mechanisms like carbon taxes indicate that globalization is no longer what it once was. Such changing global conditions are a matter of serious concern for India.
The increase in export control, the refusal of developed countries to share their technologies, and the imposition of a carbon tax regime are, in fact, a sign of the end of globalization. Therefore, a discussion about indigenous policies in India is inevitable and necessary in this context. India has to achieve its near-term, medium-term, and long-term policy requirements, which include import substitution, strategic strength, and strategic imperatives simultaneously. There is no point in wasting time. This is like running a marathon and sprinting or running a marathon as a sprint.
The Economic Survey 2025-26, presented in Parliament on Thursday by Finance Minister Nirmala Sitharaman, stated that no country currently operates in an environment where access to raw materials, technology, and markets cannot be considered seamless or sustainable. In such circumstances, Swadeshi becomes both a defensive and offensive policy tool. It serves to ensure the continuity of production despite external shocks.
It also paves the way for building sustainable national capabilities that strengthen economic sovereignty. However, a disciplined approach to indigenization requires clarity on when intervention builds long-term capabilities and when it merely perpetuates inefficiencies.
The Economic Survey further states, "The question is no longer whether the state should encourage Swadeshi, but how to do so without undermining efficiency, innovation, or global integration." PM Narendra Modi has repeatedly called on both individuals and industries to adopt Swadeshi products. The government has taken several measures to reduce import dependence on China and increase domestic manufacturing.
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Swadeshi is a disciplined strategy, not a universal principle. Permanent protection is not appropriate in sectors where India is competitive, exports heavily, and raw materials are crucial for labor-intensive industries. Warnings are raised against protectionism that promotes low-quality producers, reinforces the existing status quo through inverted tariff structures, and breaks the link between support and innovation, learning, and global integration.
