How India's 'buycott' push aims to blunt Donald Trump's tariffs

India's call to buy and produce locally isn't a throwback to the protectionist age. Instead, it is a strategic move to leverage consumer nationalism and boost the economy in a changing global landscape.

- DEEPA VASUDEVAN

Prime Minister Narendra Modi, in a recent speech, channelled the mood of the nation into a characteristically pithy phrase: "Paisa kisi ka bhi ho, pasina apna hona chahiye" (capital can come from anywhere in the world, but production should be achieved with the sweat of Indian labour).

As US President Donald Trump's tariffs come into play, the government is urging citizens to go local in consumption (buy locally made goods) and in production (Make in India).

WHY IT IS DIFFERENT THIS TIME

This 'swadeshi' (indigenous) push should not be seen as a throwback to the inward-looking protectionism of the 1970s and 1980s, even though, at its core, it espouses similar ideas of import substitution and export promotion. The difference is twofold.

First, today's India welcomes foreign capital wholeheartedly; in fact, some of the more proactive states are vying for overseas investment to generate much-needed jobs and income.

Second, the present shift is driven by geo-economic compulsions, rather than anti-foreigner sentiment or insecurity among local businesses. India has built up export capabilities, and encouraging consumers to buy domestic goods is one way to reroute export production to alternate geographies.

The swadeshi shift is a type of "political consumerism", which is defined as consumption behaviour driven by reasons other than the price or quality of the product. In other words, consumers opt to buy a good or service to show support for a larger goal, beyond economic self-interest.