Atmanirbharta and India's Self-Reliance Journey
Atmanirbharta, or self-reliance, has been a cornerstone of India's development, not merely as an economic plan but as a philosophy for national growth. India has advanced in self-reliance across various sectors, demonstrating resilience and innovation.
- Historical Examples:
- 1960s Green Revolution: Achieved food security.
- 1990s Digital Evolution: Converted talent into a national asset.
- COVID-19 Pandemic: Developed indigenous vaccines, showcasing scientific and manufacturing self-sufficiency.
- Defence Systems: Moving towards self-reliance in this sector.
Global Investment and Domestic Wealth
Despite receiving over $1 trillion in foreign direct investment since 2000, global investment dynamics are shifting, making it crucial for India to utilize its internal resources for sustained growth.
Gold: A Potential Catalyst for Growth
- Indian households hold approximately 25,000 tonnes of gold, valued at $2.4 trillion, exceeding 55% of India's GDP.
- India remains a major gold importer, with imports accounting for 87% of demand.
Gold Monetisation: A Path Forward
To leverage its gold reserves, India requires a revitalized, trust-based gold monetisation scheme, learning from global best practices.
- Essentials for Success:
- Infrastructure: Expansion of hallmarking and purity testing centres.
- Logistics: Secure and transparent management by banks and testing centres.
- Digitalisation: Easy tracking of deposits akin to bank accounts.
- Trust: Removing barriers like GST and customs scrutiny.
If implemented effectively, the cost of funds through gold monetisation could be lower than international borrowing, easing import pressures and supporting infrastructure development.
The Civilisational Choice
Mobilising India's domestic wealth, particularly through gold, is not just an economic necessity but a civilisational imperative. It emphasizes building confidence that India can sustain and fund its growth, harnessing its inherent wealth and ingenuity.
