In his Independence Day address, Prime Minister Narendra Modi spoke with unmistakable clarity: the time has come to embrace Swadeshi. What began as “Make in India” and evolved into the call for Atmanirbharta or self-reliance has now moved deeper into the more holistic idea of Swadeshi. This is not a mere slogan, but a civilisational imperative.
While India cannot ignore China, New Delhi cannot trust it either. India’s trade deficit with China crosses $100 billion every year. Currently, more than two-thirds of the country’s solar modules, over 70 per cent of pharmaceutical ingredients, and electronics worth billions come from China. These are not just numbers, but represent our vulnerabilities. Every container ship arriving from Chinese ports is a reminder of our dependence.
It is in this context that PM Modi’s upcoming visit to China for the Shanghai Cooperation Organisation (SCO) summit must be seen. His presence there is not a concession, but a statement: India will engage from a position of clarity and confidence. Engagement does not mean dependence. Dialogue does not mean dilution of national interest. The message is straightforward: India seeks cooperation where possible, but it will never compromise on its economic sovereignty.
Recent studies, including the Strategic Imperative for China Studies in India’s Geoeconomic Framework prepared by the Council for International Economic Understanding (CIEU), underline the stakes. They highlight how China’s state-led model—industrial overcapacity, dumping, subsidisation, and financial engineering—distorts markets and threatens India’s manufacturing base. They also point to our dangerous dependence on Chinese inputs in pharmaceuticals, electronics, and clean energy, warning that access to such critical goods could easily be weaponised in a crisis. These insights make one thing very clear: India cannot afford a reactive posture; it must adopt a proactive doctrine grounded in Swadeshi.
Unlike China’s approach, Swadeshi is not imperialistic. It does not seek to dominate others through debt or coercion. India’s Swadeshi model is rooted in the principle of Vasudhaiva Kutumbakam—the world is one family. The vision is of self-reliance at home and fair, cooperative partnerships abroad. It is about producing in India for both ourselves and the world, on terms that strengthen resilience and dignity.
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Next steps for India
Globally, the tide is shifting. The weaponisation of tariffs—first made visible under the Trump administration and now a fixture of global trade—has forced governments and businesses to rethink their supply chains. Across sectors, companies are searching for alternatives to China. While many call this “China+1,” India must advance a bigger idea: India+Many.
India has the scale, the talent, and the civilisational ethos to become a trusted hub for manufacturing, technology, and services. To seize this opportunity, we must deepen domestic capabilities. The government has already taken important steps—the Production Linked Incentive (PLI) scheme, the newly launched National Manufacturing Mission, and revisions to CAROTAR 2020 rules to curb trade circumvention. These measures, along with India’s renegotiations within ASEAN FTAs and new engagements with the EU, show a willingness to align trade policy with national interest. But more needs to be done.
The CIEU study rightly recommends doubling public investment in research and development to 2 per cent of GDP—an essential step if we are to bridge the innovation gap in semiconductors, clean energy, and next-generation technologies. It also calls for establishing a China Economic Risk Monitoring Unit within the government—an institutional mechanism to anticipate risks, track Chinese practices, and inform proactive policymaking. Both are urgent and necessary.
At the same time, Swadeshi calls for principled partnerships. Whether through the Quad, ASEAN, Africa, or Latin America, India must work with like-minded nations to build a truly multipolar economic order. This is how India can move from the periphery of “+1” to the centre of “Many.”
As PM Modi travels to China for the SCO summit, he carries more than just India’s negotiating brief. He carries India’s message: our Swadeshi is not insular, it is expansive. It strengthens our economy, empowers our people, and contributes to a fairer world order. In an era when trade is weaponised and supply chains are battlefields, India’s position must be firm—we will engage, but always on our own terms.
The world does not need another China. The world needs India—one rooted in Swadeshi and guided by ‘Vasudhaiva Kutumbakam’.
Ashwani Mahajan is a professor at PGDAV College, University of Delhi. He tweets @ashwani_mahajan. Views are personal.
(Edited by Prashant)