Local
The rhetoric for Indians to buy Indian, keeps resurfacing
As an Indian, I have been presented with this dilemma multiple times -whether Indians should buy products produced and sold by companies of Indian origin? This comes with a rider for ‘Zero Technology’ products. And although the idea may seem obvious, it has not translated well into reality.
It’s extremely hard to induce behavior change in consumers, especially in a free market, where choice reigns supreme and ‘Swadeshi’ rules don’t apply.
This week my colleague kicked this puddle again when he claimed he’s been trying to follow the ‘Swadeshi’ strategy for about a decade. He bought his Car and Bike from an Indian manufacturer, and actively avoids popular products from companies such as Pepsi, Cadbury’s, Nestle, Nike etc. You get the picture.
Here are two examples, where it’s clear that Buy Swadeshi has failed miserably and continues to fail -
Cola Wars
Many environmentalists, Religious leaders and Local leaders are actively protesting the growth of this segment, however packaged beverage consumption in India has grown from 4 units per-capita in year 2001 to 12 in 2011, and continues to grow strongly (double digits). When we compare it the global average is 92 units per-capita, and developed countries usually stand above 200 units per-capita per year, India’s number looks decidedly paltry. This explains why Coca Cola recently announced $5bn investment in India to capitalize on the growth potential.
Despite the ‘Swadeshi’ rhetoric Coca Cola and Pepsi control 91% of (57% and 34% respectively) the Rs. 14,000 crores Indian market(US $2.3bn).
Sports Shoe
Sports shoe market in India is ~Rs. 3500 crores ( 0.6bn USD), and Nike + Adidas control 77% of this market, with overall Foreign brands again at ~90% mark. Shoes are something India is good at producing, why is it then that there is NO significant Indian brand for Sports shoe?
The irony being that, this colleague also wears a Nike, but only because it was a gift. A gift somehow passes through his ‘Swadeshi’ lens worldview.
‘Be Indian, Buy Indian’ — Gandhian slogan
One may find several sites and groups propagating the concept, however it has simply failed to register any significant win.
Conclusion
I wrote this piece on a Dell Notebook, wearing Ralph Lauren t-shirt and a Timex watch. The list is endless. The root of ‘Swadeshi’ factor is quest for self-sufficiency. It is still waiting for its tipping point. With Trade deficit of $190bn ($300bn exports, and $491bn imports), Fiscal deficit at 4.8% GDP ($92bn) and growth slowing to ~4%, it’s past prime time for restoring sense to the current chaos.
