Meenu Sharma
Research
Scholar, Dept. of History, Meerut College, Meerut, Uttar Pradish, India
Abstract
Gandhi was the great
philosopher of India who had played major role in the national movement that
defeated the British colonialism in India. He engaged in non cooperation, non
violence and peaceful struggle against British rule. However, he was not
economist but he has given economic vision, if implemented, it would have
relieved India from many socio-economic problems. He mostly emphasized on the
small scale industries and also adopted the principle of Swadeshi. It evades
economic dependence on external market forces that could make the village
community weak. He encouraged cottage and village industries to improve the
economic condition of the country. By the encouragement of Mahatma Gandhi small
scale trading of pure Indian products started and gradually small scale
business changed into industries. New large scale and foreign industries with
intensive mechanization are coming with ongoing process of globalization which
is mainly responsible for many socio-economic problems. Therefore, the main
focus of this paper is analyzing the present economic scenario from the
Gandhian economic perspective.
Key
words: Gandhi,
Economic, Revolution, Relevance, 21st Century
1.Introduction
Gandhi
was not an academician even he was a charming leader of the Indian National
Movement with prime intention of obtaining freedom from the British rule and
reestablished self-reliance of India’s population. He always works for the well-being
of the Indian people who were suffering from the policies of East India Company
during the era of British’s. He was not a basically economist but given his
ideas on economic issue and always struggled against the exploitation policy of
British’s. Gandhi was also influenced by
the Marxian doctrine of neutrality, and its emphasis on the exploitation of
labour. Gandhiji was very much infatuated by Ruskin’s heterodox doctrine that
the wealth of a nation consisted, not in its production and consumption of
goods, but in its people (Baviskar, 1990). His economic philosophy was
mainly concerned with individual dignity and the welfare of the poor people.
Gandhi’s stress on individual’s liberty includes a sense of responsibility
towards oneself, to others, to society and perhaps to the world beyond. Thus
individual would have more choices of enterprises and prospects. This type of
arrangements would ensure a smooth relationship between the labour and
entrepreneur which may enhance efficiency with increased labour welfare. Definitely, these institutional arrangements
did not fully fruitful and develop an institutional arrangement for harmonious
relationship between the capital and labour (Bhuimali, 2014). Gandhi’s
economic ideas are understand in his whole philosophy. His main idea aims at
the socio-economic reconstruction of society. These days, some people
criticized the Gandhian thought as not up to date and un-progressive. He thinks
about a total socio-economic reform, so his economic thought must be analyzed
in this context. He did not give any
economic model regarding the development of economics but gave some basic
canons based on which we can decide what kind of economic composition is most
preferable for Indian economy (Chavan, 2013). Gandhi has given the concept
of useful work which would be helpful among all communities, lack of
untouchability, ban (of liquor), small scale and village industries, focus on
basic education, Gram Swaraj. These are necessary social inputs without them
economic development is not possible. Dodh (2012) revealed that Reconstruction in
the rural areas is the main source of development in villages. In his views,
each village is a totally independent and efficient which will fulfill their
needs. Gandhian mode have very important place in the history of economic
thought. Gandhi sponsored the rule of control the wants and to take care of
one's need and not greed. However the entire structure of economic thinking
which is based on the perception of a constant development of the goods which
satisfy unlimited demands. The second has
to do with the idea of focusing on the well-being of the poorest and weakest
member of society. This was an essential part of Gandhi's moral view of the
world (Ishi, 1994). Therefore; the main focus of this paper is analyzing
the present economic scenario from the Gandhian economic perspective.
2.Objectives
- To Study the relationship between Gandhian economic thought and village industries.
- To study the relationship between Gandhi’s views on economics and its relevance in the present.
- To examine the Gandhi’s economic thoughts.
- To study the theoretical concepts expounded by various researchers
3.Methodology
The study was conducted using secondary data and
from various books, articles, journals and blogs on Gandhi’s economic thoughts.
The research methodology for this paper is theoretical. Analytical approached
is used for the article. Personal interpretation was added wherever was
necessary.
4.Results
and Discussion
4.1 Economic Thoughts of Gandhiji
Gandhi's
views on economics were simple and straight forward which would make India
economically self sufficient, manufacturing and satisfying its own needs in
domestic market, home-grown ways. This would not only improve the composition
of the rural economy of India, it had also demoralized the British economic
motives of the exploitation of Indian people. The ethics of economic self
sufficiency were spread all over India by Gandhi during the colonial period.
4.2 Village Industry, Khadi And
Small Scale Industry
Gandhi’s
great approach of Self reliance and Swadeshi is playing a significant role for
the improvement of human beings. He presented a very useful model for economic
development in India. Gandhi saw the importance of the rural economy and
thought that poverty could be eased by stimulating village economies of
agriculture and labour intensive production by using simple technologies on a
ground level. Gandhi wanted to re-establish India from the lowest level.
Therefore, he gave an idea to Indians to reconstruct the villages. He had
imagined self-reliant villages, free from dependency on big cities which cure
them from exploitation. He has also strongly advocated for decentralization of
economy. According to Gandhi, if we want Swaraj to be built on nonviolence, we
will have to give the villages their proper place. He said that development of
the village is depended on their own self-sufficiency which is only possible
when there is no more exploitation. On the other hand the use of large scale
industries will create problem of competition and marketing in the economy.
Gandhi felt that India's dependence on imports from other countries was the
main reason of much adversity in India. His basic approach has always supposed
about the intentional needs, the need for independent villager and very close
to his philosophical and sociological thoughts. He was paying attention on the
development of common person and more significantly the development of the
depressed and needy group of people. Therefore, he has to focuses on the
village being self-reliant, mechanized mainly for use. The term Swadeshi which
used by Gandhi consists to promoting and stimulating indigenous industries like
small scale and cottage industry of Khadi, Handloom spinning and weaving mills.
He offered khadi as a sign of patriotism, equal opportunity and independence.
It was his idea by using Khadi India can defeat the British rule and which can
also rebuild of the Indian society. Therefore, Gandhi has started his movement
for khadi in 1918. He suggested that if we wear and produce such type of
clothes then British cloth must be abolished from the Indian market and India
become an independent economy. He imposed small scale and cottage industry in
India which would beneficial to Indian economy because these industries are
based on family labour and low investment. Raw material is easily available in
villages from agricultural products like cotton, food and many other crops. So
this would lead indigenous market. Gandhi gives pressure on the growth of the
rural industries like khadi, handlooms, sericulture and handicrafts. Gandhi was
of the opinion that large-scale industries have capital intensive which would
concentrate of wealth in the hands of few. If small scale industries introduced
then people would never face the problem of production and external market.
Small scale industries play major role in Indian economy it is a source of
Employment generation. The most probable problem is faced by the Indian economy
is increasing pressure of population therefore there is need of employment
opportunities. Only small-scale industries can solve the problem of
unemployment because small- scale industries use labour intensive technique.
The small-scale industries gives equal distribution of income and wealth in the
among labour .This is mainly due to the fact that small scale industries are
wide-ranging as compared to large scale industries and are having large
employment potential. These industries have more capability to generate or
attract innovation. They provide abundant opportunities for the advance
technology. The entrepreneurs of small industries play a deliberate role in
expansion of new innovation and goods. It also make easy to transfer the
technology from one to the other. As a result, the economy collects the benefit
from small units. In the age of globalization, there is a deferent scene in
India due to the mass effect of globalization. India becoming is an emerging
economy and plays a significant role in global world. Actually in 21st century
the economic views of Gandhi were not adopted by government. Jawaharlal Nehru had given other idea of
development which not only an indigenous growth of small industries and
villages. It is happen with the significant effect of rapid westernization and
industrialization during recent period (Nachane, 2007). But in the global
world the perspective of economies is to construct heavy and large scale
industries. Globalisation possibly will be supposed as a development of ‘global
external market’. According to Kurian (2013), the main source of globalization
is ‘privatisation’ and ‘liberalisation’. Therefore, India also concentrates on
the industrial growth which may be enhancing the growth of India. The growth of
industrial sector leads to a more utilization of natural resources which have
easily available in the particular country as a result, production of goods and
services has increased employment opportunities has been generated and
increased the standard of living of common people. In this ongoing process of
globalization country framed various policies aimed at development of
industries in the public and private sectors.
Due to this effect India emphasis on large scale industries and multinational
companies (Pani, 2002). The main effects of globalization in the Indian
economy are that many foreign companies established industries in India. The
benefit of Globalization on Indian economy is that the foreign companies
acquire highly advanced technology and this would help to make the Indian
economy more technologically advanced. But the real picture is totally
different because this is one sided development in India. Due to the effect of
Globalization small scale sector has abolished its existence from Indian
economy. Large scale industries have use capital intensive technique which
would increase unemployment because India is a most populated country and
people wants more jobs. However with the effect of globalization or technology
based industrial expansion and use of machines have created more unemployment
in country. The rapid growth of large industries due to globalization has not
passed benefits to everyone. It has tremendously increased in the informal
sector which affected the working population. The informal sector is not included
in the labour legislation because these workers have not good health, terrible
working situation and more burdens. Child labour has been forced to work in
industries because in this ongoing period of globalization, the people who work
in the large scale industries are living in extreme poverty. Profits are goes
to only entrepreneurs therefore gap between the rich and the poor has been
increased. Apart from this, large scale industries has also ruin of the
environment through pollution which affects the health of human beings.
4.3 Relevance of Gandhian Economic
Thoughts
The
great economic ideology of Gandhi enhanced the development of rural areas and
minorities by giving them equal and sustainable earnings, therefore question
presents itself: What is his relevance of economic thought of Gandhi ji today
for Indian economy. Globalization has been playing a vital role in Indian
economy. The economy of India is currently the world’s fourth largest in terms
of real GDP (Gross Domestic Product) after the USA, China and Japan. It has
registered ninth position in terms of GDP (Gross Domestic Product) and fourth
position in terms of PPP (Purchasing Power Parity) and recorded highest
constant growth rates in the 21st century. It has accounted for a remarkable
rate of growth in 2011-12, which is estimated at 7.1 per cent (Economic Survey
2011-12). Going back, in the Year of 1947, when India achieved independence
from British rule, it had faced stagnation in economy and was caught up in a
vicious circle of poverty. Then Indian government took a policy of ‘laissez
fair’, which was articulated by Jawaharlal Nehru. India focused on the import
substitution policy. Due to this ongoing process India has given stress on
expansion of industrialization on large scale. As a result new and foreign
industries are coming to Indian market which enhances India’s growth. But this
type of progress is on sided because the profits goes to only entrepreneurs and
people who are benefitted from these reforms and globalization are entrepreneurs
and belonging to business class. Therefore the gap between the rich and poor
has increased. Most of the private
enterprise is established in urban and big cities so that villages are totally
ignored by the industrialist who would lead them demoralize. On the other hand
India is a country of villages where most of the people lives (Nayak, 2005).
However, the production on large scale would create conflicts between labour
and capital. Here capital takes upper hand over labour. Such conflicts may not
occur in the case of rural industries. Rural industries are the symbols of
unity and equality. In India large-scale industries have been concentrated in a
few big cities and in rural areas there is no big industry like khadi,
handlooms, sericulture and handicrafts. The small-scale and cottage industries
would give a deliberate place in our planned economy towards the fulfillment of
the socio economic objectives of Gandhi’s particularly in achieving equitable
and sustainable growth. So there is need to move back to Gandhian economic
ideology who was always in fever of Swadeshi and self- reliance of villages. If
all the land and resources that is available was fully utilized, it would
definitely fulfill the needs of all human being. If we should try to improve
villagers workmanship and buy their products in spite of imported products or
even articles produced in big cities, big factories. In other words, we should
induce the creative talent of the villager and develop their indigenous market
in the present 21st century. Gandhi’s term true ‘Swadeshi’ consists in
enhancing and stimulating cottage and small industries. It also provides
opportunities to the original talent and imagination of the people. It can
generate employment for Indian youth in the country that is in search of job.
so India should adopted the economic mode and idea of Gandhi which totally
favourable in today’s Indian economy because India’s balance of payment is
unfavourable because India export more from other countries rather than produce
in our country by using labour intensive technology. The products which are
imported by India such a high technology based. On the other hand, if India
should follow his ideas of self sufficiency and ‘Swadeshi’ India never face
these types of problems. So, India must need to go back Gandhian economic
ideology.
5.Policy Implications
It gives a vision for the
development of an alternative economic system. In this system everyone will
have his or her say. There will be no gap between rich and poor. A minimum
living standard will be available to everyone. No one will be hungry, no one
will have leisure unnecessarily; importance to manual labour will be given.
Moral and ethical principles will remain attached with every aspect of life.
Women and children will not be exploited. Production will be by masses,
self-sufficient village communities will be there. Employment and education for
all will be the aim of the system. Simple living and high thinking would be the
aim and ideals of that utopian society.
6.Conclusion
Gandhi's
economic thoughts have great impact on Indian economy. He emphasized on cottage
and small scale industries which have significant importance for the
development of the Scio-economic condition of the common people. He has
proposed very constructive economic ideas and if these ideas implemented, India
would have been relieved many socio-economic problems. India should emphasis on
the policy of Gandhi which specially represent the Swadeshi policy and work for
human being. In the age of globalization, Indian society is facing many
socio-economic problems on account of large scale industries and mechanization.
In such scenario, there is urgent need to rethink over Gandhi's economic
ideology. Small scale industries play a key role in our economy for its development.
These industries are basically using labour intensive and high potential for
employment generation. Gandhi’s thought that industrialism which uses capital
intensive technique is based on the exploitation of people. As a result most of
the people would be suffered from this type of mechanism.
References
- Baviskar. In the Belly of the River: Tribal conflicts over development of the Narmada Valley. New Delhi: Oxford India Paperbacks, Oxford University Press, 1999, p.21.
- Bhuimali (2014). Relevance of M.K. Gandhi’s Ideal of Self-Sufficient Village Economy in the 21st Century. Articles on Gandhi. Sarvodaya. 1(5): pp.34-60.
- K. Ishii (1994). The Socio-Economic Philosophy of Mahatma Gandhi: with a Particular Focus on his Theory of Trusteeship. The Economic Review, 154(1): pp.-72-91.
- M. Kurian (2013). Globalisation and India’s Economic Identity: An Overview. Mainstream, XLVI (32): pp.1-7.
- M. Nachane (2007). Gandhian Economic Thought and Its Influence on Economic Policymaking in India. Available at www.isn.ethz.ch/DigitalLibrary/Publications/Detail/?ots591.
- N. Pani (2002). Inclusive Economics: Gandhian Method and Contemporary Policy. New Delhi: Sage Publications, p.39.
- P. Dodh (2012). Impacts of Globalization on Social Inclusion: A Comparative Analysis to Gandhian Economic Philosophy. IJPSS, 2(5): pp. 287-297.
- P. Nayak (2005). Gandhian Economics is Relevant. The Times of India, October 2, 2005, p.9.
- S. Chavan (2013). Economic Ideas of Mahatma Gandhi, Indian Streams Research Journal, 3(9):p.1 Available online at www.isrj.net.
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