Self-reliance is given a limited scope in the context of the present day circumstances. It generally means self-sufficiency in food and essential raw materials, in defense, in technical manpower and in the capital goods sector. Apart from it there should be a long term equilibrium in the balance of payment. Priorities among these factors should be assigned according to the conditions available in a particular country.
The main objective of growth in India is to provide better living standard to the poor. So it will be necessary to become economically independent at least in those areas which have strategic importance. Self-reliance does not mean only freedom from dependence on foreign aid but it also involves masses and the establishment of an acceptable minimum standard of living for the continuing rise in the standard. So, self-reliance is linked to the capacity for self-sustaining growth.
With the constant bullying from Western powers, India is yet considered economically backward. The main cause of political instability, and economic crisis is that we do not exploit our resources fully to meet our needs. Developed nations always try to make
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capital out of the weaknesses of the developing nations because it serves their global interest. No nation can exist if it does not try to become self-reliant.
Falling short of foreign exchange, and being insufficient in our stock of food and many other articles we cannot dream of economic growth and we can have no independent foreign policy. It should be admitted that international life is almost a community life and every nation has to depend upon other nations for one or the other commodity. It will be unwise to look for essential commodities from the foreign countries though some of the commodities we cannot produce at all. For example, even if we exploit our resources to the fullest extent we will not be able to meet our requirements of petroleum.
We should understand that self-reliance does not imply the stoppage of all imports, rather it demands a continuing equilibrium of payment. The level of domestic savings should be on the increase, and the imports should be coupled with self-generating economy. Self-reliance also implies the creation of capacities in those areas of production which require imports. Productivity cannot gain fillip unless we have properly trained manpower. There are two distinct groups of economists, who have different yardsticks to measure self- reliance.
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One set of economists support the continuance of foreign assistance and has an opinion that there is a contradiction between the faster rate of growth and self-reliance. These economists believe that self-reliance necessarily implies lower rate of growth.
The other set of economists believe that external assistance should be dispensed with, for according to them easy availability of assistance will tend to make us prone to be indulgent consumer. These economists assert that in India the rate of consumption is far above the rate of savings. They firmly believe that the inability to build up capacity in machine goods sector in India is the reason for our unstable economy.
So they advocate that the nation should adopt an income and price policy which guarantees a better system of income distribution. They advocate that the rich should be prevented from more consumption and the poor should not find the gradual decrease in their income with the rise of price level. They also suggested that system of public distribution of the articles of essential consumption should be improved and the industrial pattern should be such as to eliminate foreign collaboration.
How far India has been able to become self-reliant is a big poser. With the various revolutions – green revolution, blue revolution, white revolution, yellow revolution – we have attained self-sufficiency in our food front. We have to some extent become self-reliant in the production of fuel, thanks to black revolution. As far as national defense is concerned we have attained a reasonable degree of self-reliance. Our latest triumph in Kargil shall attest this fact. With recent advances in science and technology, we can be proud of being self- reliant in many areas, but we have many more areas where we are lacking.
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Self-reliance in the case of the balance of payment is represented by balance of trade. In recent years there has been a rise in exports. India has also been searching for import substitutions. So there is a great possibility that in less than a decade from now we will be able to bring a reasonable and favorable balance of trade.
The unpredictable global price rise in mineral oil is and also in certain import commodities do create a little imbalance, yet these hurdles can be weathered off with our export value helping us meet the cost of imports.
It is needless to mention the various efforts which have been made to have the imports’ substitutions and also export promotion. Considering that India is a developing country, for diversifying our economy we will have to import capital goods and equipment. Also we should bear in mind that we are yet paying heavy interest on our past debts. The import of technical know-how, in order to absorb modem technology, also costs India a huge sum. The trade deficits are yet to be balanced.
In fact, we should have effective resource mobilisation, for our political stability as a democratic Government and for proper economic development. Our policy towards consumption and saving will have to undergo a drastic change and the people will have to make sacrifices. Self-reliance will have to be evolved out of the social efforts.