‘Vocal for Local’: A Good Slogan Needing Proactive Policies

On 12 May, 2020, Prime Minister Narendra Modi in his address to the nation raised this important and attractive slogan. The immediate spark was to call for support to the local Indian brands which are facing terrible crisis due to the pandemic and the subsequent lockdown. The broader goal was to provide a rallying point for his idea of Atmanirbharata— self-reliance. The timing could not be better for such appeal. If not now, then never— one may argue. The Prime Minister who has great oratory skill, also justified his favour for the local by reminding ‘every Indian’ that what are now the distinguished and coveted global brands were local in their origin. True, because brands do not enter the world from the blue sky. They firmly originate in the rugged soil of the countries of their origin. But the question is, such slogan can only materialize when it is backed up by appropriate and proactive policies.

To establish legitimacy of the local products is not an easy task. It involves huge arrangement of human, financial and material resources. India is an exceptionally large country with rural-urban divide and steep social and economic inequality. One may argue that closer home China has managed to make use of the local production efficiently and has been able to spread local products throughout the world. But we have to remember that China has been able to systematically establish supportive policies to promote local production. It is true that China has less problems in formulating such policies because of her authoritarian political system which dictates public policies from the top of the ruling Communist Party. But that does not take away China’s credit in making her local products global. Today, with China’s infiltration in Ladakh there is a shrill cry for boycott of Chinese goods and Chinese apps. But even when one acknowledges the justification of patriotic emotion in such cry the fact remains that Chinese products and services have penetrated the Indian market too deeply to be removed by the sleight of the hand. We may, for instance, remove fifty nine Chinese apps but the Chinese phones remain. The irony evident in the joke that China has started supplying India with millions of ‘Boycott Chinese Products’ stickers cannot be underestimated. It is also an open secret that China’s aggressive presence in consumer goods market, including electronics industry, and in pharmaceutical industry, is to a great extent due to her ability to decentralize production.

Let us agree that basically lack of supportive financial and developmental policies has crippled the ‘local’ in post-independent India. India always had wonderful local production hubs— with immaculate artistic and engineering skills— the list is too long to mention here. But lack of support compelled them to either remain confined to dingy kiosks or to down their shutters. Our rulers were not wrong in emphasizing industrial development but they faltered in privileging large scale industries at the cost of medium, small and cottage industries. We sought to be global by neglecting the local. In underestimating local knowledge and local skill India is lagging far behind in creating micro-entrepreneurs. Take the case of textile industry. We have mega textile industries, some of which connect with the local but we have not been able decentralized it. One should also learn a lesson from the next door neighbour, Bangladesh. The small neighbour of ours has made global progress in garment manufacturing and has a staggering growth in garment exports. If Bangladesh can do it, why not India?— the question begs serious attention and scrutiny.

The issue is not just being vocal about local but to follow it up with the right kind of local-friendly policies to lend it first national and then global status. With the onset of the “Make in India’ policy there have been some progress in policy circle to cater to the MSME (Micro, Small and Medium Enterprises). It is needed because this sector’s contribution is 37.5% of the GDP. India also has a dynamic minister in charge of MSME, Mr. Nitin Gadkari. But lot more needs to be done without delay. New technology is to be introduced with vigour in local production shops, and taxes and tariff should be substantially reduced to generate competitiveness in them. Local producers should be freed from the tangled web of red-tapism and indifference when they come up with new ideas. National and foreign collaborators should also be encouraged to have tie-up with local entrepreneurs. In doing so we, Indians, have nothing to lose but our indifference and contempt for the anything local. The road to the global after all lies through the local. Thus, the local has to be in the loop beyond the realm of words.