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Name: Pankaj Tembhare

Roll No. 609


Suggested by : Roy madam

Today our world is facing a crisis in relation to its economic conditions. We are nearly close to the first decade of the 3rd millennium. Until very recently this decade was experiencing an economic boom. The index of the equity market arose to as high as 21 thousand. There was hope of endless prosperity everywhere. Then suddenly a financial crisis started in August 2007 in United States. The United States economy is mainly a credit economy. People borrow lots of money from banks for investment in houses, cars and for many other purposes. They used to earn good wages and were able to pay back regularly and the system went on well.

The loss of balance started when many borrowers lost the jobs. Repayment of loans was delayed. The banks lost their cash liquidity. One by one all the banks were closed. Further loss of employment followed. From 2008 all advanced economies namely United States, Europe, and Japan went down in recession. Crisis passed on to all sectors. Demand slumped. Production plunged. Job loses arose. Credit market remained still. The world trade contracted substantially and it collapsed in 2008. Export from major exporters like Germany, Japan and China fell by about 35%. As a result of all these, widespread unemployment and social stress occurred. We are now passing through the 1st major recession after the great depression of 1930's in the last century.

Foreign investors invested a huge amount of money in Indias co-operate sectors. External financing is so deep in Indias economy. When the recession began foreign investors withdrew their amount here to secure their positions in the home. Foreign remittance from gulf countries also slowed down as the oil prices fell and the gulf countries went down in recession. Exports demand to United States, Europe and the Middle East has fallen. Many sections of people became jobless. In the German jewellery industry itself it is said that three hundred thousand people lost jobs. Areas of construction, transportation, trade, tourism and hotel industries have all been affected by the global depression. Migrant workers from Bengal, Bihar, Orissa and Assam also face loss of employment.

Corruption of Indian leaders results in great fall of our Indian economy but we are also not aware properly for this issue. we are selecting the people for leadership which are not eligible for their job and persons which are able, we are not selecting them. This is one of the major problem with us and indirectly we are also responsible for decreasing our economy.

Some people have recently started a campaign to make India 100% swadeshi. They want that our industries, technology, education, healthcare, language, food, dress : everything must be swadeshi. : We too respect great Indian spiritual culture. But, there are two aspects of this : individual and political. We think every individual should be free to choose his or her lifestyle (such as food, dress, religion etc). Even Indian culture

never forced its ideas on any individual or nation in the past. As to political aspect, we have to discuss merits or otherwise of a swadeshi economy. A company makes profit only if people buy its products at the price fixed by the company. So let people decide whether they want to buy such products or not. If these products are bad or inferior or expensive compared to goods manufactured by Indian companies, people would not buy them. Besides, foreign companies bring in a lot of capital, new technology & new management techniques; they generate a lot of employment; give better salaries to their staff than Indian companies do; pay huge amount of taxes.

If Ayurveda, Pranayam and Yoga can cure all diseases, the whole world would start following it. Why do you demand that government should ban Allopathic science and permit only Ayurveda. You just sell your idea vigorously : if there is a merit, it will be accepted by the masses. Then automatically, there would be more demand for Ayurvedic doctors and people will start studying your Ayurveda all over the world. Then allopathy would die a natural death.

Many of the handmade indian things which we can use proudly like handmade clay pots which are made by our makers by their own hand having so much designing. we can also use indian traditional clothes having attractive designing made by our indian designers. we know that indian things are costly as they are handmade but by purchasing this not only we can help to increase our economy but also we can help to increase the level of our country in economic point of view

We can use many of the swadeshi things like many of the foodstuffs ,mobiles,beauty products,soaps,medicines,etc.which are so much hyeginic and also very interesting .By using these we can ultimately increase our economic condition.

The model of development that India used has not worked. The GDP of India has increased but this is an extremely flawed measure of progress (Anialski et al, 2000). The trickledown effect has not worked. The majority of the people in India benefit very little from industrialization. And they all lose when the Swadeshi model of development is rejected. India, and the rest of the world, should look at Gandhi's philosophy of Swadeshi to guide our economic and political decisions. To reject foreign manufactures, merely because they are foreign and to go on wasting national time and money in the promotion in one's country of manufactures for which it is not suited would be criminal folly and a negation of the Swadeshi spirit." This happened because the three main interest groups with political power backed Nehru

(Baviskar, 1999). The capitalist merchants and industrialists, technical and administrative bureaucracy, and rich farmers all wanted rapid industrialization because they stood to personally benefit from it. Because these groups had power Swadeshi was disregarded and a model of rapid industrialization was adopted, to the detriment of the majority of the population of India.

Use of swadeshi Products is the only way to improve our economic condition we can increase our economy condition it is in our hand by using swadeshi products and avoiding foreign products to secure Indian money.