{"id":65506,"date":"2026-01-30T22:06:37","date_gmt":"2026-01-30T16:36:37","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=65506"},"modified":"2026-01-31T11:49:36","modified_gmt":"2026-01-31T06:19:36","slug":"swadeshi-economic-strategy","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/30-01-2026\/swadeshi-economic-strategy","title":{"rendered":"Swadeshi as a Disciplined Strategy"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/Economy<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>As per the <strong>Economic Survey 2025-26, Swadeshi<\/strong> is <strong>\u201cinevitable and necessary\u201d<\/strong> as the <strong>global trading environment<\/strong> is marked by <strong>export controls, technology denial regimes and carbon border mechanisms.<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>About<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Survey noted that, unlike corporates in post-war America, Germany, Japan, and East Asia, Indian firms show a <strong>relative lack of appetite for long-term risk absorption and nation-building investments.<\/strong><\/li>\n\n\n\n<li>It said Indian firms show <strong>limited willingness<\/strong> for <strong>long-term risk absorption and global competitiveness, <\/strong>relying more on regulatory arbitrage and<strong> protected margins than on productivity, scale, or learning.<\/strong><\/li>\n\n\n\n<li><strong>Swadeshi means to ensure continuity of production<\/strong> in the<strong> face of external shocks, <\/strong>and a pathway to <strong>build enduring national capabilities<\/strong> that reinforce economic sovereignty.&nbsp;<\/li>\n\n\n\n<li><strong>Lack of Capex:<\/strong> The Capital expenditure (capex) as a share of GDP<strong> rose to 4% from 2.6% between FY20-25,<\/strong> however economists are of the view that <strong>private investment remains subdued.<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Manufacturing Sector of India<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India\u2019s manufacturing sector is currently contributing <strong>17% to India\u2019s GDP.<\/strong><\/li>\n\n\n\n<li>India has a goal to achieve the target of<strong> 25% GDP share for the manufacturing sector.<\/strong><\/li>\n\n\n\n<li><strong>India is focussing on 14 identified sunrise sectors<\/strong> like semiconductors, renewable energy components, medical devices, batteries and labour intensive industries, including leather and textile, to enhance the share of manufacturing in GDP.<\/li>\n\n\n\n<li><strong>The industrial sector is projected to grow by 6.2%,<\/strong> up from 5.9% in FY25.\n<ul class=\"wp-block-list\">\n<li>The sector recorded growth of 7.0% in the first half of FY26, exceeding the growth of 6.1% in H1 of FY25 and the pre-COVID trend of 5.2%.&nbsp;&nbsp;<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Innovation: <\/strong>India\u2019s innovation ecosystem has also strengthened, with the country\u2019s Global Innovation Index rank improving to 38th in 2025, up from 66th in 2019.<\/li>\n\n\n\n<li><strong>Within manufacturing, strong performance was observed&nbsp; with notable growth in:<\/strong>\n<ul class=\"wp-block-list\">\n<li>Computer, electronic and optical products (34.9%).<\/li>\n\n\n\n<li>Motor vehicles, trailers and semi-trailers (33.5%).<\/li>\n\n\n\n<li>Other transport equipment (25.1%).<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Employment Generation:<\/strong> As per the survey, seven states together account for around 60% of total employment in the manufacturing sector.\n<ul class=\"wp-block-list\">\n<li>TN tops the list with a 15% share of manufacturing jobs, followed by Gujarat and Maharashtra at 13% each.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Challenges Faced by India\u2019s Manufacturing Sector<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Infrastructure Bottlenecks:<\/strong> High logistics cost, poor port connectivity, and power shortages leads to low output.&nbsp;<\/li>\n\n\n\n<li><strong>Low R&amp;D and Innovation<\/strong>: India invests less than 1% of GDP in R&amp;D, limiting high-tech manufacturing.<\/li>\n\n\n\n<li><strong>Import Dependence:<\/strong> Heavy reliance on imports for semiconductors, electronics components, and defence equipment.<\/li>\n\n\n\n<li><strong>Skill Gaps:<\/strong> There is a major mismatch between workforce skills and industry requirements.<\/li>\n\n\n\n<li><strong>Low Productivity:<\/strong> Due to the outdated machinery, small-scale fragmented units, and limited automation productivity remains low.<\/li>\n\n\n\n<li><strong>Global Competition:<\/strong> Countries like Vietnam, Bangladesh, and China offer cheaper production and better ecosystems making Indian products less competitive.<\/li>\n\n\n\n<li><strong>Environmental Concerns:<\/strong> Rising pressure for sustainable and green manufacturing with high compliance costs.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Major Initiatives Taken to Enable Make in India<\/strong><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img data-dominant-color=\"b6d0df\" data-has-transparency=\"false\" loading=\"lazy\" decoding=\"async\" width=\"780\" height=\"780\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/01\/image-133.png\" alt=\"Major Initiatives Taken to Enable Make in India\" class=\"not-transparent wp-image-65509\" style=\"--dominant-color: #b6d0df; width:391px;height:auto\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/01\/image-133.png 780w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/01\/image-133-300x300.png 300w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/01\/image-133-150x150.png 150w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/01\/image-133-768x768.png 768w\" sizes=\"auto, (max-width: 780px) 100vw, 780px\" \/><\/figure>\n<\/div>\n\n\n<ul class=\"wp-block-list\">\n<li><strong>The National Manufacturing Mission (NMM):<\/strong> It was announced in the Union Budget 2025\u201326, as a long-term strategic roadmap that integrates policy, execution, and governance into a single, unified vision.&nbsp;<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img data-dominant-color=\"d0dce6\" data-has-transparency=\"false\" style=\"--dominant-color: #d0dce6;\" loading=\"lazy\" decoding=\"async\" width=\"443\" height=\"327\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/01\/image-131.png\" alt=\"National Manufacturing Mission (NMM)\" class=\"not-transparent wp-image-65507\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/01\/image-131.png 443w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/01\/image-131-300x221.png 300w\" sizes=\"auto, (max-width: 443px) 100vw, 443px\" \/><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\"><strong>Recent Achievements of Manufacturing Sector of India<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Ease of Doing Business:<\/strong> In the World Bank\u2019s Doing Business Report (DBR) 2020 India was ranked<strong> 63rd<\/strong> up from 142nd rank in 2014.<\/li>\n\n\n\n<li><strong>Production of Vaccine: <\/strong>India achieved COVID-19 vaccination coverage in record time but also became a major exporter to many developing and underdeveloped countries across the world.\n<ul class=\"wp-block-list\">\n<li>India supplies <strong>nearly 60% of the world&#8217;s vaccines,<\/strong> meaning every second vaccine globally is proudly made in India.<\/li>\n\n\n\n<li><strong>India\u2019s pharmaceutical industry<\/strong> is ranked <strong>3rd<\/strong> in the world by volume and 14th in terms of value of production.<\/li>\n\n\n\n<li>The industry is projected to grow to USD 130 billion by 2030 and the US$ 450 billion market by 2047.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Vande Bharat Trains:<\/strong> It is<strong> <\/strong>India\u2019s first indigenous semi-high-speed trains, and are an example of the success of the &#8216;Make in India&#8217; initiative.\n<ul class=\"wp-block-list\">\n<li>As of now, 102 Vande Bharat train services (51 trains) are operational across Indian Railways.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>INS Vikrant: <\/strong>It is the first domestically made aircraft carrier.\n<ul class=\"wp-block-list\">\n<li>In 2023-24, defence production soared to \u20b91.27 lakh crore, with exports reaching over 90 countries, showcasing India&#8217;s growing strength and capability in this critical area.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Electronics:<\/strong> India\u2019s electronics manufacturing sector has seen a sixfold rise in production and an eightfold surge in exports over the past 11 years. Electronics value addition has jumped from 30% to 70%, with targets to reach 90% by FY27.\n<ul class=\"wp-block-list\">\n<li>India is the <strong>second-largest mobile manufacturer<\/strong> in the world and now manufactures 99% domestically.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Indian bicycles<\/strong> have gained international acclaim, with exports to the UK, Germany, and the Netherlands soaring.&nbsp;<\/li>\n\n\n\n<li><strong>Made in Bihar&#8217; boots <\/strong>are now part of the Russian Army\u2019s equipment, marking a significant milestone for Indian products in the global defence market.<\/li>\n\n\n\n<li><strong>Amul<\/strong> has expanded its presence by launching its dairy products in the US promoting Indian dairy on the world stage.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Conclusion<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>As India advances toward its <strong>$35 trillion vision by 2047<\/strong>, manufacturing will be the engine of growth.&nbsp;<\/li>\n\n\n\n<li>Supported by reforms, sectoral incentives, and resilient supply chains, the sector has gained strong momentum, reflected in GDP growth projections.<\/li>\n\n\n\n<li>If this momentum is sustained, India can transform from being the \u201cfactory of the world\u201d to becoming the \u201cinnovation and leadership hub of the world.\u201d<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/indianexpress.com\/article\/business\/economic-survey-flags-india-incs-lack-of-investment-appetite-10501984\/\" target=\"_blank\" rel=\"noopener\"><strong>IE<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong>Context<\/strong><\/p>\n<li class=\"ms-5\">As per the Economic Survey 2025-26, Swadeshi is \u201cinevitable and necessary\u201d as the global trading environment is marked by export controls, technology denial regimes and carbon border mechanisms.<\/li>\n<p><\/p>\n<p><strong> About <\/strong><\/p>\n<li class=\"ms-5\">The Survey noted that, unlike corporates in post-war America, Germany, Japan, and East Asia, Indian firms show a relative lack of appetite for long-term risk absorption and nation-building investments. <\/li>\n<li class=\"ms-5\">It said Indian firms show limited willingness for long-term risk absorption and global competitiveness, relying more on regulatory arbitrage and protected margins than on productivity, scale, or learning. <\/li>\n<li class=\"ms-5\">Swadeshi means to ensure continuity of production in the face of external shocks, and a pathway to build enduring national capabilities that reinforce economic sovereignty.\u00a0 <\/li>\n<p><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/30-01-2026\/swadeshi-economic-strategy\" class=\"btn btn-primary btn-sm float-end\">Read More<\/a><\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-65506","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/65506","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=65506"}],"version-history":[{"count":4,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/65506\/revisions"}],"predecessor-version":[{"id":65543,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/65506\/revisions\/65543"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=65506"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=65506"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=65506"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}