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March 30, 1998

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Pritish Nandy

This Bane of Swadeshi Politics

What is swadeshi? What does this business of a level playing field mean?

In simple language, it means protecting the inefficient, pampering the lazy, supporting the weak and the effete. All, in the name of nationalism. Under the pretext of protecting one's own industry.

It means taking pride in cowardice. Only a nation that lacks dignity and self respect preaches swadeshi. Because swadeshi means acknowledging one's inability to compete with the world. It means hobbling around on crutches and expecting others to pity you.

It also means, in India, reinforcing the ugly nexus between business and politics. Both have a vested interest in saving the other's gander. For businessmen who are not very good at business need protection. While politicians, greedy pigs, are always desperate for cash. And they have no qualms about where it comes from, so long as it comes. So those businessmen who cannot win in the marketplace because their products are shoddy or their management shallow use these politicians to protect their businesses. With slogans and obsolete notions of patriotism. It is cheaper, easier and simpler than setting up world class factories or building brands to compete globally.

That is where swadeshi comes in. With its revolting cliche: Be Indian, Buy Indian.

As a nation grows stronger, better, more aware of what the world has to offer, it must learn to break away from self indulgent nationalism and take on global competitors. You need no special skills, no high funda technology to make or sell toothpastes and colas, soaps and T shirts. True. But that is no excuse to stop multinationals from coming in to hijack the opportunity. Instead, it may be a good idea for our companies to make such low technology products at low cost and grab the global market.

Multinationals will always have strengths. Global presence offers global insight. Plus, they get huge economies of scale. They also have easy access to research, debt and management talent from all over the world. But so will our companies if we made a serious effort to compete. Instead of wallowing in self pity and begging the government to set up tariff barriers to protect us from what we see as rapacious rivals wanting to turf us out of our home market.

Actually, the government owes it to the consumer to assist him in buying the best products in the world at the best possible price. In India. Irrespective of where they are made and who makes them. But, instead of fulfilling that commitment, it protects Indian businessmen today and allows them to market shoddy, second rate products at highly inflated prices to keep their businesses alive.

For this, our businessmen pay a price. They fund politicians at election time, to keep the banner of swadeshi aloft. So that they can keep churning out trashy products, sell them at high mark ups, and insist on rival brands of vastly superior quality being kept away from our markets. In the name of patriotism, Gandhi and Bharat Mata, to defend what is actually indefensible. Bad quality. Outdated technology. Rotten marketing. And, what is worse, careless standards of production.

That is why I admire Ratan Tata. He does not ask for protection. He does not plead for any special favours. He only wants what is rightfully his. The opportunity to challenge global rivals and come up heads. That is why he is building a world class brand. His focus is on business ethics, product excellence, modern technology. Many of his companies-in fact, most -- do not have these, he knows. So he is ready to get rid of them and remodel, restyle the group, spearheaded by a new corporate emblem that swears by the highest standards. Whether he succeeds or not is another matter. But he is trying. He is trying very hard to set up a global brand that bows before no one. Even if that means shutting down or selling off more than half his companies.

It is a deliberate policy born of pride and self respect. Give him credit for that.

Dhirubhai Ambani, on the other hand, is on another trip. Size. He is always out to install global size. Reliance, before the century is out, will be an unbeatable company by every norm. You can stop bitching about its past. You can forgive it its many indiscretions. What you can and should be proud of is that one Indian in one lifetime has produced one company that can challenge petrochem majors anywhere in the world. Unlike the Tatas, who rely on professional managers, Reliance depends on the vision and commitment of an amazingly enterprising family that refused to cower before its competitors, be they Indian or global.

That is what makes the Ambanis unique.

Both the Tatas and the Ambanis (who would hate my clubbing them together) are unique examples of Indian enterprise. One celebrates tradition, ethics and quality. The other, size, growth and challenge. Each has taken its own unique road to success and stardom.

Of course, they lobby. They make their own demands. But they do not crawl on all fours for special privileges. Neither seek protection nor pampering in the name of swadeshi. Both stand on their own legs, as proud Indian enterprise.

That is what we need. More and more Indian companies that can take on the world.

So what if you lose control? So what if foreigners walk in and buy out part of your stake? If you are good enough, if you know your business better than anyone else, you will still play a pivotal role in the future of the company. No one can ignore you. No one can write you off.

The problem is only where you fudge figures, cheat banks and financial institutions, make monkeys out of your investors. That is where you need protection. Where you need a swadeshi cover. To pretend to the world that everyone else is a buccaneer, out to grab your wonderful enterprise. The truth is: If your company is strong, there will be any number of white knights to come and save you. If not, who cares whether it is taken over or not. Your performance determines your future. Not the colour of your skin. Nor the political connections you use to stymie your rivals.

The problem is when you are not a good businessman. When you survive by fraud and chicanery, manipulation and influence. That is when you need swadeshi. When you need lies, bullshit and politics to protect your turf.

If we are to grow into a strong, powerful, self respecting nation, we need to build strong, powerful, self respecting corporations and brands. We need not beg for political protection. We do not want swadeshi slogans to gloss over our own incompetence. We want, in fact demand, equal opportunities, equal challenges to prove how good we can be. Who cares whether the playing field is level or not!

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