Category Archives: Economics

Integral Humanism or Ekatma Manavadarshan

Integral Humanism or Ekatma Manavadarshan

Pandit Deen Dayal’s ideas of the future of Bharat can be distilled from his presidential address delivered at Calicut in December 1967. The 4 speeches that he delivered formed the framework for the philosophy of Integral Humanism or Ekatma Manavadarshan.

A large population of our world lives in poverty. After having tried various development models with mixed results, the world is in search of model of development which is integrated and sustainable. Pandit Deen Dayal’s philosophy ‘Integral Humanism’ proposes an alternative model for development which is integral and sustainable in nature.

Integral Humanism aims to provide a life of dignity to very human being while balancing the needs of individual with those of the society and countries. It advocates the use of natural resources at a rate at which they can be replenished.

Integral Humanism extends democracy and freedom from being merely political to social and economic as well. Integral Humanism supports diversity by doing away with the one size fits all approach of other models.In my view, its an ideal model for country like India with its unique history, diversity and cultural ethos.

Any model of development that does not take into account our unique history, diversity and cultural ethos is bound to fail.

One wonders why a nation which has an abundance of natural resources and labour is struggling to come out of poverty even after six decades of independence. The answer lies in the fact that development models were imported from countries which have nothing in common with us.

Secondly, we have worked very hard to undermine our biggest asset and strength – our culture.

Lastly we lacked a long term roadmap and a framework for re-building India. At best we had five year plans which were always aligned with election cycles.

Pandit Deen Dayal’s philosophy outlines an integrated and sustainable roadmap for the development of India in tune with its cultural ethos.

Pandit Deen Dayalji believed that every individual, family and our society has a role to play in the development of our nation. His philosophy derives its strength from our culture and timeless principles of dharma.

There are 4 specific ways to implement or live Deen Dayalji’s philosophy

Raj-neeti –  The way we do our politics can be changed. Deen Dayalji believed that the purpose of politics is to bring about social and economic changes. In Panditji’s works, one will find guidelines on how to build and grow a political party; how to fight elections, form alliances and a code of conduct when in opposition or in power.

Artha-neeti – Policies and principles that can balance the use the labour, natural resources and capital so that we can provide a life of dignity to every human being. Guiding principles for any economic policy such as Budget can be found in Panditji’s works.

Samaj-Shastra – Panditji’s philosophy outlines the role played by families and society in building a nation. Policies that strengthen the family institution should be pursued.

Rashtra-neeti – Panditji highlights the role and responsibilities of a state in building a strong nation. Panditji calls out the difference between a state and nation and calls for the state to pursue policies that strengthen the nation.

Pandit Deen Dayal’s work provides us with a philosophy and principles on which polices can be formulated.

Pandit Deen Dayal ji was a modern day rishi whose life can be summarised in 4 words – tyag , tapasya , seva and balidaan. A bright young scholar who did not pursue his career but decided to serve his country. This tyag was followed by decades of tapasya and seva which resulted in building a political alternative and a development model in tune with our cultural ethos. His untimely death shocked the nation but his balidaan was not in vain for his ideas and ideology continue to inspire many even today.

On new insights …. One often believes that development of a nation is driven by its politics and economics. Deen Dayal’s work goes beyond Raj-neeti and Artha-neeti and talks about the importance of Samaj-shastra and Rashtra-neeti.

Aim of Integral Humanism is to provide a life of dignity to every human being. Better measure of success is ‘Antyodaya’ i.e. did we improve the life of the human being at the lowest rung of society.


Integral Humanism – A Study

एकात्म मानव दर्शन : एक अध्ययन

Panditji’s most valuable contribution to mankind was his enunciation of the concept of Integral Humanism. Those deeply involved in the make-and-break politics may mistake Panditji’s Integral Humanism as a new ‘ism’ or doctrine or dogma propounded by him inorder to counter all other prevailing ‘isms’ or to add a new one. It is all too well-known that prophets of an ‘ism’ or a new political thought claim originality. It is more so in the West. A slight deviation or difference with the current thought entitles one to proclaim himself the founder of a new doctrine. But no such thought ever crossed Panditji’s mind. As a true votary of culture, he was not given to this narrowness. He believed in what Bhagwan Sri Krishna said in the Gita that true knowledge is timeless. One may observe some variation in its expressed form owing to varied situations and conditions but that does not mean the creation of new knowledge. Panditji, through his creative ability and positive outlook put a new gloss on the true and eternal thought current and reinterpreted it to suit the changed and contemporary world. It would be clear, therefore, that integral humanism was conceived only to perfect ‘isms’ so that they could meet the challenges posed to them. It was farthest from his thought to add to the ideological bitterness obtaining in the society by outright rejection or repudiation of any of the contemporary ideas, ism or viewpoints while expressing his own.

Why this ‘ism’ or that

Pandiji was opposed to all ‘isms’. He only believed that which was truthful and timeless, could face the challenges of change and, therefore, could hardly fit into the steel-frame of any ‘ism’. In other words, no ‘ism’ can ever suit all countries and conditions and for all times. He precisely thought so. But in the modern age, people cannot think without an ‘ism’, and he too adopted the usage only as a compromise for the convenience of his audience.

But to dispel any doubts in this behalf, he used to explain that as one cannot easily concentrate his mind in निर्गुण (“Nirgun” or attribute-less) (or) निराकार (“Niraakar” or formless) ब्रह्मा (Brahma), he needs in the beginning, to fix his mind on सगुन (Sagun or of attributes) or साकार (Sakar or of forms) ब्रह्मा (Brahma). Once one gets accustomed to this form of concentration it becomes easier for him later to do so in respect of the “Nirguna” or “Nirakar” Brahma also. So to grasp easily the real and eternal truth which is above all ‘isms’, first one has to comprehend fully the reality that exists in this world through the medium of integral humanism.

Seer not a Philosopher

To engage oneself in constant debate, discourse or a controversy is the function of a philosopher. Panditji was not a philosopher in that sense of the term. To call him so is to belittle him. In the tradition of Bharatiya sages of yore, he was in fact a seer. Therefore, whatever he has seen and perceived, may be called दर्शन, “Darshan”. The word philosophy hardly conveys what we Bharatiyas mean by the term. This kind of “Darshan” is neither new nor unfamiliar to us. It has flourished in our soil. It will be worthwhile to understand this basic point before we proceed further so that there is no confusion because of the use of this suffix.

Why at all we needed the term and the concept of Integral Humanism at this juncture, specially when many many ‘isms’ and thoughts were born, spread and are regarded as progressive in the west. Many of our people wonder whether it is worth its while to strain our brains unnecessarily when our problems could be solved by borrowing wholesale the ‘isms’ or theories of the west. Similarly, it is also unreasonable to reject everything of western origin. It would therefore be useful to briefly review the currents and cross-currents of western thought in the last three or four centuries.

Western Thought

Let us, first of all, deal with ‘sect’, or religion. It can be stated briefly that when this drama of religion was being enacted on the European stage, the entire system or order was centrifugal. The Pope was the central point and the entire Christian world revolved around him. Later on, two revolts challenged the centralized authority of the Pope.

In the second phase of religion, the idea that there was no need of an intermediary like the Pope between the seeker and the sought became very powerful. This gave rise to sects like the Protestants. The people thought that interference by an external authority which may be confined to religious matters, should not be permitted in the affairs of the state. Thus was born the concept of Nationalism.

In the third phase, we find that the existence of religion was attacked and it was decried as meaningless as an ‘opiate’. To think of a supernatural power beyond perceptible human power came to be regarded as devoid of truth and mere flight of imagination. The origin, middle and the end of the universe was nothing but godless physical matter. Religion was nothing but an illusion. As physical elements and matter were believed to be origin of nature, mind too was considered a superstructure on matter. I other words, religion, culture, ethics, etc., has no independent existence and were mere reflections of social and economic conditions. Thus in the third phase, matter became fundamental and religion was totally rejected.

Reaction against Atheism

The next phase of development in Europe witnessed a reaction against materialistic atheism. Scholars and thinkers began to realize that whatever views Marx might have formed on degeneration of religion and the Church and howsoever relevant they might have been to the situation then prevailing there, it would be wrong to regard them universal or global. Instead, emphasis shifted to re-evaluation of the place of religion in the different countries in different periods. Thinkers began saying that even if religion was not to be regarded as fundamental to human life, they would have to concede, it had a distinct place and it would be wrong to think that religion was an opiate or its form was determined by social and economic condition.

Change in Marxists’ Thinking

Such ideas started gathering momentum. Further, even the staunchest of Marxists who, very loudly denounced God in favour of materialism and who condemned religion as opiate, started doubting Marx as crude materialist. His thesis in 1842, on the freedom of the individual and the freedom of the press, and his Economic and Philosophical Manuscripts published in 1844, prompted his followers to declare that he was not a mere materialistic thinker. They thought that just as inanimate and material things influenced abstract thought, abstract thinking too influenced insentient material objects. Similarly, if, on the one hand, social and economic situation played an important role in shaping religion, culture and ethics, on the other, socio-economic conditions were also influenced by religion, culture and ethics. In other words, they act and interact on each other.

Four Centuries of European Thought

Let us discuss what does European history of four centuries reveal? We find that in the early period individual is the primary unit. But when the curtain is raised, we do not find the free individual anywhere on the scene. He is merely a puppet in the hands of the Pope or of the Monarch with no free will of his own.

In the next stage, we see that the individuality of man asserts itself through defiance of the oppressors. This led to open revolt against the Pope and the Monarch, which liquidated the authority of the Papal state and monarchy. Later, the thought that individual freedom should remain unrestrained gained ground. Institutions like the Parliament, or other democratic systems which ensured individual freedom came into existence and people were happy that those agencies could protect individual liberty.

With the passage of time, individual liberty led to freedom for exploitation; the democratic institutions turned into means of exploitation of the weak by the strong, of the poor by the rich and of the less intelligent by the more intelligent. We thus witness in Europe emergence of two classes – the exploiting minority and the exploited majority. Those oppressed to any kind of exploitation were up against freedom of exploitation while those opposed to it wanted to do away with individual freedom. In other words, extinction of individuality of the individual was demanded. The situation, then, warranted a totalitarian apparatus. And what could it be?

All intents to establish a totalitarian state in the name of individual freedom and all institutions wanting freedom of exploitation met with strong opposition. Thus arose the need of a revolution, a bloody revolution, since democratic institutions were found to be incapable of ending exploitation. It is how the idea of a bloody revolution aimed at establishing a dictatorship of the proletariat gained popular support. Incidentally, a bloody revolution did take place in Russia. But experience proved that it was not the dictatorship of the entire exploited masses but of a coterie, a ruling coterie. People tolerated the order in the hope that, that was a transitory phase and that as soon as the dictatorship of the have-nots was established, the situation would change. But their hopes were belied and they began to realize that the dictatorship of an individual or a small clique has come to stay. That, perhaps, is the reason why we witness signs of revolt against this order, the one under which they are groaning.

Urge for Individual Freedom

It appears that rumblings against the communist state and the urge and efforts to restore individual freedom have set in. In the countries which are not directly ruled by communists but have communist parties, party leaders are hotly debating why could not democratic institutions and agencies be used to end exploitation. An influential section of such leaders argue that, may be the idea of bloody revolution was relevant and inescapable in the timers of Marx, but in the changed circumstances, parliamentary institutions could be utilized for founding dictatorship of the proletariat. On the other hand, in countries where Communism had not gained any foothold and where parliamentary democracy and other democratic institutions were welcomed as alternative to monarchy and as weapon to defend the individual, people seem to be losing faith in these very institutions. This section believes in complete freedom and is not prepared to bear with even such restraints and discipline as the western democracy prescribes for the individual. It makes no distinction between freedom and licence. Hippies, in the western world, belong to this section. They are not only opposed to democratic institutions but to any order that be. This, in short, is what has been going on in the West during the last three or four centuries; that is individual dominated as the central entity.

Revolt against ‘Family’

Now after the individual, we will discuss the institution and the system of family which remained intertwined in all societies through the ages. Hindu Shastras, Confucianism, Islam and Christianity all alike, accepted it as indispensable.   But in the west, this too was attacked for two reasons. The Communist condemned the family as being artificial system. They asked ‘why as entity like family should be allowed to stand between the individual and the society?’ – So – ‘break the family and set up communes’, they exhorted. In another direction a strong dislike was expressed against family discipline which each individual had to undergo. This, according to the dissenters, is a negation of individual freedom. The family, therefore, deserves to be destroyed and the young men or women should bid good-bye to their parents after marriage. The smaller the ones’ family, the better for unrestrained actions and doings.The deficiencies and faults of the two schools came to the fore sooner than later. The experiment of communes, in Soviet Russia flopped and as a reaction the desire for family life grew stronger. Even under communist state demand for extending legal recognition to parenthood and fatherhood became so forceful that ultimately the rulers had to yield. Similarly, in democratic countries, more especially in the U.S.A, eminent thinkers raised their voice against Hippie cult of licentious way of life and suggested reintroduction of the joint family, without which, a stable society was a far cry. Such views are now being widely accepted in USA.


The unit next to family is nation, society or national society. Somehow, it appears that owing, perhaps, to the overwhelming influence of the Pope over European masses, the awareness of nation or nationalism could not develop. But the same grew out of the reaction against the Pope’s interference in religion and against foreign and imperialist aggression. This background gave birth to a reactionary type of nationalism in Europe, which reinforced the view that if nationalism and the authority of the Pope could not go together, nationalism and internationalism were also opposed to each other. Consequently, a crude and extremist form of nationalism was born in every country of Europe.  Later a reaction to this extremist nationalism was natural, which led to the emergence of another extremist ideology – Communism.

Communism discarded the concept of religion nation or nationalism etc., as being redundant and meaningless and required everyone to think in terms of internationalism which alone was considered relevant. When in 1914 during the First World War, workers in several countries supported their respective national governments; Lenin could not help expressing his anguish over their stance. He suggested that the workers, instead of co-operating with their governments, should have turned traitors and strengthened the wave of internationalism.

Before long the communists took over in a number of countries. But in the process the charisma of internationalism began fading and nationalism again started reasserting as a force so much so that even under the state wedded to internationalism a thinker like Morris Hindos in his book ‘Mother Russia’ makes a strong advocacy of nationalism. In this context the two chapters of the book, “Rediscovery of the Past” and “Russia for Russians” are quite significant. And how the two internationalist powers (Russia and China) are set on a collision course at present is too well-known for comment.

Progress Stunted

The present conflict between nationalism and internationalism leaves little or no scope for the west to think of mankind as a whole. The reason behind this is that their entire thinking is homocentric – which means, that the center of the universe is the human race and the western realm of thought has kept revolving around it. Let us not take sides in the ideological strife of the west as to which one is right and which is wrong. But one cannot help concluding that whenever an ideology was imported into this country from the west, it was acclaimed as progressive and all other were branded reactionary. In spite of this, we find that none of the so-called progressive ideologies lasted long. They continued to change and vacillate from one extreme to another. This makes it very clear that the western thought has yet to attain durability and finality.

Product of Reaction

In short, the western though instead of being positive is an outcome of reactionLet us put it like this: Suppose there is a particular situation prevailing in a country, it is bound to give rise to an idea or thought. It also needs revision when the situation changes. Therefore, the entire western thinking being based on reaction, we notice a serious ideological conflict in that part of the world. We reckon it as their second trait. The third one is that no western though is all embracing, is valid for all times. Moreover, it is very much segmented. The fourth being their failure to synthesize the essence of varied thoughts put forth from time to time, with the result that they remained diverse and incompatible. The French Revolution is an instance point.

Life Values

The subject for today’s discussion has in the present circumstances assumed great relevance and is a lesson for our country. It would, therefore, be essential to comprehend it well.

For the sake of equality, the difference in the minimum and maximum income is sought to be reduced (we too want it). It would then be argued that in the meantime inspiration for one’s development will go. If the live values were to be purely economic, one is apt to think as to why he should work hard. In spite of one’s sweating labour and becoming an Einstein or a Radhakrishnan if he for reasons of equality received no more than Rs.2000, his enthusiasm is dampened. On the other hand, if he is a damned idler and remains a peon he cannot be paid less than Rs.100. Why then one should be up and doing to become Einstein or Radhakrishnan.

Therefore, if the source of inspiration were purely material, the will to individual improvement or enterprise will die and if the same were to be encouraged with material gain as the end, the object of equality will have to be given good-bye. The present-day problem of brain-drain in our country has its roots in that the life values have become purely materialistic with the result that if a higher material development is not attainable in this land, it should be sought elsewhere.

In order to change this unhappy and unhealthy situation, we need a life system with different values. The system should be an amalgam of material as well as non-material life values of universal nature. I am deliberately avoiding the term ‘spiritual’ nature. One is as much inspired by material motives as by the desire of social prestige or status. Let there be a system embracing both. Ancient Bharat did evolve such a system. The system ordained an inverse ratio for acquisition of social prestige and material gains.

That is, if one aims at highest social prestige, he should be prepared to forego personal material benefits in the same ratio to further elaborate the point, highest prestige or reverence could be commanded against lowest intake of society’s material resources. If, on the contrary, one wanted maximum benefit from the society, he was free to do so, but he won’t be entitled to social prestige in the same measure. This, an order based on careful balance of the two human incentives was achieved and maintained.

West lacks Balance

But the west lacked this balance. In the early days, after Communist Revolution in Soviet Russia, people were forced to work under the overseer’s whip. And today there exists 1 to 80 disparity in the minimum and maximum incomes which completely negates their avowed equality. Even existence of classes is being tolerated. The former Yugoslavia Prime Minster Djilas in his book, ‘The New Class’ confirms this disparity. Not only that, special amenities and benefits are being offered to some, as social incentives. I would recall here, when Russia shot its first Sputnik, Khrushchev proudly proclaimed it as a victory of communism. But soon came a rebuff from the well-known philosophers Bertrand Russell, “that was not the victory but the defeat of communism – that it was because of special treatment given to the scientists which was a privileged class, which enabled them to make the Sputnik”.

I also endorse it as a defeat of communism because they could not reconcile materialist way of life with equality. This is true of Russia, Yugoslavia and all other communist countries. To be precise, all incompatibilities obtaining in democracies are equally discernible in communist countries. To be precise, all incompatibilities obtaining in democracies are equally discernible in communist countries. In other words, western ideologies lack eternality, finality and durability. They are used to thinking in bits and grooves, with the result that the ideologies of the west instead of being positive are reactionary in nature. They lacked the capacity to harmonize the various desirable goals relating to a society and to a period of time.

No Blind Imitation

Against this backdrop, we are forced to recapitulate, whether we in this country, can afford a blind imitation of the west. Swami Vivekananda was told by western thinkers, “we would accept your ideas of spiritualism and in return you should accept our ideology of socialism. You agree with us in the sphere of economics, while we do so in the area of spiritualism”.

But, Swamiji replied,Brothers, you are right, but your new ideology is in experimental stage while ours is an ancient nation. We are no fanatics. Before we accept your ideology, let us see that it has stabilized. We should like to see the evidence whether it has sustained the society for some five hundred years. We cannot accept an ideology which has not yet been tired and is still in a state of experimentation”.

Communism – its plus and minus

Communism is acknowledged in the west as the most progressive ideology of the day! Let us scrutinize it in the context of Swamiji’s statement. Fifty years has hardly elapsed since the Russian Revolution when cracks appeared in communism. The very definition of communism is being disputed in its own camps. While Russia decries China as deviationist and revisionist, China hurls back the same invective at Russia and both use these accusations against Yugoslavia. Dange is revisionist in the eyes of Namboodiripad and vice versa. The two are agreed that Charu Mazumdar was a deviationist and revisionist and in the reckoning of the latter Dange and Namboodiripad are “misguided Marxists“.  If one were to compile the epithets used by one communist camp against the other, word communism, would be reduced to, word deviationism. There is nothing in communism which has not been found faultless. No rationalist can comfort himself over this situation. If within a short span of fifty years, the entire camp of the so-called progressive nations can come to such a degree of deviation, to quote Swamiji, “what is the guarantee that the ideology has the strength to sustain the society for five hundred years”?


When we deice to review various ideologies we will have to examine their merits and demerits without following them blindly. We should not object to adopting whatever is worthy. One reconstruction, the late Sarsanghchalak of RSS, once said of our old order, “There may be many withering leaves and branches of trees which have already decayed. Let them decay and fall. Let us not be sorry over this. Similarly, if fresh sprouts grow, we should welcome them. All that has to be watched is that they do form an organic while with the mother tree, they are one with the tree. The dried leaves and the dead wood will fall and new offshoots will issue in their place with the passage of time. This is a natural process. So let there be no hesitation, rather we should welcome new thoughts. The only condition is that they should help us in reaching our goals”. But it appears that west can hardly ensure this.

Bharatiya Way of Life

Now we are set on reviewing the western thought. Likewise they are doing the same about out thought. And about our socio-economic structure they hold views contrary to ours. They do not find anything congruous and consistent in any area of thought of system. Instead, they see chaos everywhere. Let us take such areas one by one and religion first.

In the eyes of westerners, a complete anarchy prevails in the sphere of religion. For them, there is no single or uniform faith in Bharat. While one is a theist the other is an atheist, the third a monoist and the fourth a dualist. Some worship idols, some formless God and other reject God in all forms. Even the believers do not have a common God. Gods abound, perhaps they number as many as their worshipers – some 333 million. This number was arrived at perhaps to match the Indian population of yore. Every individual is free to choose his or her own path to suit his nature, psyche, physique, and need of the soul. The paths are bound to differ. But this is unthinkable in the west, firstly because, there is regimentation in thinking and secondly because, they are used to an exclusive thinking that ‘I or my path alone is right’. It is not very unnatural for them to deduce that India is full of diversities and contradictions and they are indeed baffled by them. Similarly, the places of family, nation, society, internationalism vis-à-vis the individual also appear to them to be fraught with inner contradictions.

We believe that the individual must have the fullest scope of development and is entitled to utmost happiness. Therefore, the social and economic system should be so fashioned that the individual has full scope for happiness and development. Along with individual we have also recognized family. Mother and father have been regarded as gods (मातृ देवो भवः, पितृ देवो भवः matru devo bhav, pitru devo bhav). It was never suggested that because the entity of the individual has been recognized, he is free to abandon his parents and live away with his wife after marriage. Not only that the role of the individuals as well as that of the family has been defined and delimited, it has up for been further laid down that the individual should be given the sake of family. He can even be sacrificed. It has further been ordained that give up the whole world for the sake of the self (आत्मार्थ पृथिवीं त्यजेत atmarthe prithivim tyajet). Those influenced by western thought will apparently find these thoughts as inconsistent and incompatible. But we all know it is not so.

Individual and Society

The relationship of the individual with the nation-society has been similarly defined. But in the west, there appears a conflict between the two. A fierce controversy rages there over the question of the border between the individual and the society. If the individual is permitted bigger latitude the society is curtailed in the same ratio and if the society is allowed a wider range of control, the individual’s liberty is abridged in the same measure. Therefore, we witness a tug of war between the individual and society in the west.

But in Bharat, both have their due place. Neither is at loggerheads with the other. While the principle of individual’s right to complete happiness and development and also the society’s obligation to social discipline is demanded of the individual on the other. The individual is expected to strive for his contentment and development and simultaneously required to surrender to the will of the society, i.e to do his duty to the society unhesitatingly and voluntarily. The ultimate lies in his readiness to offer his happy and developed self at the feet of the society. Thus, we can infer that there exists a complete identification between individual freedom and social discipline to the great astonishment of the west.

Nationalism and Internationalism

What has been said above about man and society relationship is true of nationalism and internationalism. In the west, nationalism is a product of reaction. This is why there has been inherent disharmony between nationalism of two nations and between nationalism and internationalism. We have a nationalistic prayer saying “I am born in this good nation, give me happiness and glory”, (प्रादुर्भूतोऽस्मि राष्ट्रेऽस्मिन्, कीर्तिं वृद्धिं ददातु मे – श्री सूक्त pradur bhuvan surashtre asmin kirtim riddhim dadatu me). We find more similar prayers for the good of the world.

I recall here an occasion during the deliberations of the Vishwa Hindu Parishad (World Hindu Conference), when a question was posed ‘how to define Hindu’. I cannot deal with the question here in depth but will touch upon one aspect of it where Hindu connotes nationalism, internationalism or even something beyond or more. The answer, however, was that when the whole world was uncivilized, world civilization was invariably identified with Hindu nationalism. But even that supreme position we never thought of exploiting other nations in the interests of our own. Our motto was कृण्वन्तो विश्वमार्यम्Krinvanto Vishwamaryam”, i.e  we are Aryans and will make the world Aryan – we are cultured and will strive to share our culture and refinement with others and raise their level. This thought forms the base of our positive nationalism, which is a historical fact and which instead of creating clash between nationalism and internationalism, provides rudiments of internationalism. We have been averse to the idea that one who claims to be a nationalist cannot be an internationalist and conversely one who is an internationalist cannot be a nationalist. Again the westerners are amazed at it. They fail to grasp how one can be a nationalist and an internationalist both at the same time. But we see no contradiction in it.

Beyond Humanity

What lies next, is beyond the west’s comprehension. They, at best, can think of internationalism or humanity and not beyond. But our thought has transgressed this limit and dwells upon still further – the entire life. Only we have conceived life other than human life. There are some among Hindus who feed fish, ants and cows with sugar and flour. Why so? Because they believe all life is like their own. Not only that, even inanimate objects are regarded as part of creation of the ParamAtma like their own selves, and worship even stones for they see the creator in them, as God is omnipresent. Further, our people inquired of themselves ‘what is man’, ‘what are other beings’, ‘what all this animate, inanimate, sentient, insentient creation is’ and themselves realized later that all creation is one. But they, nevertheless, discovered that unity was different from the uniformity. We never believed that all must be uniform but did think that all are one and how strong this unity is, has been best expressed in, सर्वं खल्विदं ब्रह्मSarvam Khalvidam Brahma” (Chandogya Upanishad), meaning, all this world is one.

Our religion and our country has the capacity to sustain the universe, the creation. Certain principles and ideals are eternal an ever-lasting and, therefore, immutable. Our religion with the force of these truthful and eternal principles has churned our best thoughts and ideas to suit changing situations and conditions. All apparent contradictions and discord have been harmonized to a great extent. If we think of one point or one thing alone many things appear conflicting. Sometimes we talk of Karma (action) and sometimes of sanyas. One one hand, we believe in Moksha and on the other in ‘all is worthless’. Sometimes, we declare धर्मस्य मूलं अर्थाम Dharmasyamulam arthah” (money is the root of Dharma). But all these apparently different and divergent views have converged into one coordinated system sometimes is unintelligible to an ordinary mind. Relying on Swami Vivekananda it can be safely said that our religion has the capacity to sustain the society and it has done so for hundreds of years. It is true that sufficient thought could not be given to what changes are warranted in the social set up over the last twelve or thirteen hundred years. Again, I would caution that there is no need to be alarmed at the word ‘change’ as changes have been effected in the society with the sanction of Dharma and philosophy from time to time. It has been said, तर्को प्रतिस्टा श्रुतियों विभिन्न रैको मुनीर यस्य वाचः प्रमाणंTarkoprathista shruthayom vibhinna, raiko munir yasya vachah pramanam”, i.e., Vedas differ, Smritis differ and words of no Muni should be treated as last word. Unfortunately, the lasting peaceful conditions which are required to this effect changes eluded us for these twelve or thirteen hundred years and some distortions and flaws crept into the system. Some surgery is undoubtedly need, but to quote Gandhiji ‘operate the diseased part but do not kill the patient;, Remove the defect but let the system work. Our society is sustaining itself for the last several centuries. We always had ageless and unchanging laws and changing provisions going hand in hand.

Now the question arises, should we accept different western ideologies as progressive, modern and better just because they are new. It would be fair to make comparative study of the two and take what is best in them. On comparison, we find that our Sanatan Dharma stands superior to western thought. It has many characteristics but in the present-day context the late Pt. Deendayal Upadhaya had said, “We stand for Integral Humanism“.

Modern Dharma

The difference in the two pictures is probably clear now. The principal feature of our धर्म,  (Dharma), as related to contemporary situation, has been termed, “Integral Humanism” by late Panditji. Sanatan Dharma more or less has the same take. It is this make which can ensure happiness and prosperity for the mankind through the ages.

A Clear Direction

Now we should also bear in mind that our way of thinking in this country is unique. The reason is that there lies fundamental difference in the basic concepts of Indian philosophy and the thoughts of non-Indian thinkers. Panditji very clearly pointed out that in the West, though has been given to various points, institutions and concepts in a compartmentalized manner. They have thought of the individual, family society and humanity as separate and non-interacting entities. When dealing with the individual, they lost sight of other organs of the society. The same applies to their thinking on family, society and humanity. This is inherent in their contemplation. They confine themselves to one organism. Let us take religion for instance. They have various faiths and sects, but one believes itself to be only right and others wrong. Now let us look at our own country. We too have numerous faiths and beliefs but here we say, “my path is right and so is yours too”. The west asserts “my religion alone leads to God”. This is the western metaphysics while Bharat says, “your religion also leads to God”. The same approach is found in socio-economic matters. They have concentrated on one entity as it has no correlation or inter-action with the other. For the sake of clearer understanding, I would add that in their system, the individual forms the center and around it are concentric circles representing family, community, nation and humanity respectively. As I have stated, this is a concentric arrangement in which individual is the center. The circles though surrounded the center, yet to have no independent existence and function and without interplay.Against this, our arrangement, which is not new but ancient, is an ever expanding spiral. It begins with the individual but goes on enlarging to family, family to society, society to nation, nation to humanity and ultimately to the universe or Srishti without ever de-linking with the center i.e, the individual.


The difference of the two systems is worthy of note. We dwelt upon the individual, family, community, society, nation and mankind. And so did they. But as I have submitted these two systems widely differ. They treated all as distinct though concentric entities with no inter-relation but we did not. So their though remained exclusive.In our system, on the other hand, one entity originates from the other and expands into the next and thus forming an infinite spiral with no inner conflicts and no tensions. Individual nowhere comes into clash with family and family with community and so on and so forth. Not only that one is not opposed to the other, we have gone a step further, we believe one is complementary to the other. I would further illustrate my point. An infant knows little about anything but himself. As he grows he recognizes his parents, his brothers, sisters and the people around him and thus develops the awareness of family, but this awareness does not negate his ‘I’. To him, ‘I’ and the family both are a reality. He grows and develops his mind and becomes capable of action. He then forms a community with people of like mind and like action and becomes indistinguishable and inseparable from his community. By and by he develops an identity with the nation and becomes one with it. And at last comes the state f Sanyas, सन्यास (renunciation) when he realizes that all humanity is one, nay, entire cosmos is one and he is not only the citizen of the world but of the universe.

So from an infact ‘I’ (aham), to the highest attainment, rather renunciation as a sanyasin – is a long journey in the realm of self-cum-social consciousness of man. As his consciousness grows, his attachment with the old (small) entity, though a reality, starts wearing and that with the new one – the bigger one – becomes stronger. The last and the ultimate, i.e., “all this universe is Brahma (God)” is reached when one discards everything material (takes to Sanyas).

No Chaos

In other words, all units or entities are realities of life. As our consciousness grows, our vision widens. As all are realities, one is not at cross purpose with the other. None can be denied and none discarded. This is like the seed, sprouting into plant, plant growing into a tree and tree blossoming and bearing fruits. The seed, the plant, the flowers and the fruit all look different. None appears to have any relation with the other. To some, it may appear that there is chaos in the nature. But is it so? Not at all. All this is the process of evolution, growth and development. There is no conflict between the seed and the tree. The tiniest and the tallest entities, though have their independent existence, together form a single integrated whole. Bharatiya way of thinking is akin to this.

Why Integrated Life

We have laid enough emphasis on individual, the smallest unit, and rightly so. We conceive of an individual so organized and integrated as is unknown to the west. There the stress is on material progress. As you know, the U.S.A is considered to be the most advanced nation and country. They have attained a high level of prosperity but is it not surprising that common people there should be deprived of happiness and contentment? Their life seems plagued with contradictions, strife, unrest highest crime incidence, suicides and things like that. There appears tremendous increase in high blood pressure, heart ailments and criminal tendencies. The country which has the capacity to buy the whole world could not buy mental peace. So we are constrained to think, “What after all is our goal?” – Happiness which is enduring and real.

Europe, in spite of limitless acquisition is groping for happiness. Christ rightly said that, even if one has the whole world and yet loses his soul he is the loser. The west has reached the moon but has lost its happiness. On the contrary, our smallest unit, the individual is more organized and integrated. He is not divided or torn. An American psychologist has said of American society, ‘our roads are full of crowds of isolated, solitary and self alienated humans’. When they are so isolated within themselves, what use they can be to the world? There is no harmony between the individual and the society. The ill lies in considering man a physical and economic being. They think that once man is given money and material, comfort, happiness and peace will follow. But this expectation is belied. This is why highest standards of living failed to bring in its wake the much sought after happiness. This flows from the defect that they always thought in isolation, in bits, so to say, and never, thought of  various facets of human nature and its needs except that man is an economic being.


We admit that man is also an economic being and there be no doubt about it. His needs of food, sleep (aahaar, nidra, bhaya, maithunam cha), fear and sex must be satisfied. But this was not enough and we did not stop here. We thought that man was something more than economic being. He is a physical, psychological, political, social, and religious being too.

आहार निद्रा भय मैथुनं च सामान्यमेतत् पशुभिर्नराणाम् ।
धर्मो हि तेषामधिको विशेष: धर्मेण हीनाः पशुभिः समानाः ॥

(आहार, निद्रा, भय और मैथुन – ये तो इन्सान और पशु में समान है;  
इन्सान में विशेष केवल धर्म है, अर्थात् बिना धर्म के लोग पशुतुल्य है)

As I have said, his individuality has many facets. Therefore, if all aspects of human nature are not attended to in entirety, he will be deprived of the state of real happiness and contentment. In our wholesome thinking while we did not neglect man’s needs and desires and conceded that they should be satisfied, we also imposed reasonable restraints. It is not true that only Freud gave serious thought to sex. In this country, sex has been treated in all seriousness, an indispensible force. In Chapter 3, Sloka 42 of the Gita, it has been said:

इन्द्रियाणि पराण्याहुरिन्द्रियेभ्यः परं मनः ।
मनसस्तु परा बुद्धिर्यो बुद्धेः परतस्तु सः ॥

( इन्द्रियोंको स्थूल शरीरसे पर (श्रेष्ठ) कहते हैं; इन्द्रियोंसे श्रेष्ठ मन है;
मनसे भी पर बुद्धि है और जो बुद्धिसे भी पर है वह (आत्मा) है )

… which means senses are above desires, mind is above sense, intellect above mind and soul (आत्मन, atman) is indescribable and above all. Some scholars have interpreted सः this sloka as Kama, the sexual desire. But even if this is agreed, sex has not been left unbridled and unrestrained. It has been subjected to restriction. Bhagwan Sri Krishna himself claims, “I am Kama”, but at the same time he also says, “I am Kama and Kama should be satisfied but not against Dharma”.

Life based on Dharma

Like sex we admit money has a place in life. All should be able to satisfy their material needs. One need not have to worry night and day about how to fill his belly. He should have enough leisure to devote it to literary, artistic and cultural pursuits and also to God if he so desires. Thus, while taking full cognizance of money and sex, man has been cautioned against their use beyond a reasonable limit, lest it may spell his doom and disintegrate the society. Our ancient seers were very conscious of the possible pitfalls and evolved a philosophy which incorporated some eternal laws and some universal laws. They also perceived and tested them. They did not merely search, codify or compile such laws. The sum total of the perceived laws – eternal and universal – made to prevent the individual from falling, the society from degeneration and for the highest development and progress of the individual is known as Dharma. But Dharma alone is not enough. Money and sex were not ignored. They were, however, sandwiched between Dharma on one end and Moksha (‘salvation’) on the other. Thus was evolved a quartet of Dharma, Artha, Kama and Moksha for guiding the human endeavor and enterprise. This being coordinated, organized and integrated system did not divide or split the individual but gave free choice of his life’s goals and ideals best suited to his physical, mental, intellectual and spiritual capacities and capabilities, keeping his individuality intact.

What is Integrated Humanism?

It must always be remembered that unless various ingredients of the individual and individuality are organized, an organized society remains a far cry. In fact this organized state is our starting point where from we march towards the individual, family, nation, humanity and the entire universe, i.e., all animate and inanimate creation. And this is integral humanism, we will find that it not only obviates conflict between various entities, but establishes that one emanates from the other as part of a process of development in which the smaller entity though autonomous in its area, merges into the bigger one. So far as the human society is concerned, its sequence can be from individual to family and family to nation and nation-state and then to one world state on the basis of integral humanism. In the realm of thought the highest level would be the principle of non-dualism Advait.

Goals of Integral Humanism

The world state or government as conceived under integral humanism will be quite different from the once conceived by the communists. Their world will be mono-centric and monolithic, while ours will be multi-centric and multilithic. The communist system will be sustained by regimented thinking and will display uniformity, but in our world system no such uniformity is foreseen. Every nation will be free to develop according to its own genius. Every nation will consider itself an organ of the body – the world government – in the same way as an individual subordinates himself of his own free will his entire acquisitions and achievements to the society at large. We will be one with the whole mankind and whatever material progress we attain through our best efforts, its ripe and sweet fruits will be offered at the feet of the Humanity. This is how a nation while remaining free and sovereign, will progress and will be bound with others by good-will and cooperation, flowing from its commitment to the spirit of universality. A world government on this model will be after Pt. Deendayalji’s dream of Integral Humanism, followed by non-dualism Advait, in the world of thought which is logical consequence. In the end, I would reassure that if we hold fast to the thoughts and ideals, propounded by him, we should be able to dispel the confusion in the midst of which the present generation finds itself confounded.

(Translation of a Speech by Shri Dattopant Bapurao Thengadi, organised by Deendayal Upadhyaya Smarak Siksha Samiti at Kanpur in February, 1970).

(Courtesy: Deendayal Upadhyaya’s Integral Humanism: documents, interpretations, comparisons, New Delhi: Deendayal Research Institute, 1992, Integral Humanism – A Study, pg:70-84, Edited by Sri.Devendra Swarup). 

(Courtesy: Sri.Raghunandan, Dakshina Madhya Kshetriya Samyojak, Pragnya Pravah).

For further reading, please refer the link : Deendayal Upadhyaya – The Seer of Integral Humanism

Integral Man : Bharatiya Concept

एकात्म मानव : भारतीय चिंतन

For obvious reasons, it has become necessary for us to reflect once again on Indian life values at this juncture. So long as we were subjugated nation, the dominant thought in Indian minds was about our country, our nation, our identity. It was generally believed that attainment of our nation a’s freedom, and its reconstruction, called for the services of virtuous people – people who were free from blemishes, selfless, full of sacrifice and devotion. In those days, workers of political parties used to live a life of simplicity and sacrifice. None ever dreamt of any departure from this tradition. When the leadership of the nation rested in the hands of such eminent men of high character, integrity, and selfless nature, our nation could manifest its sacred and glorious tradition and would reach the height of prosperity, it was believed. But unbridled power brings in its wake many a vice. It is said that of the many intoxicants, the toxic effect of power is the most harmful. It can be said that in today’s public life qualities like simplicity, selflessness and sacrifice have become conspicuous by their absence. Corruption is rampant. Without quoting specific instances, it can generally be stated that of the people in public life today, there are many whose public activities are strikingly at variance with the well-recognized standards.

Since a few years back, it is being said that is a “Crisis of Character” in our country. But nobody takes seriously to the task of character-building. We expect ordinary men to be of good character, full of virtues and of a selfless nature. That is why, probably, even acts of misfeasance were made punishable under our Penal Code. But nobody seems to be concerned about the many major scandals involving persons in high positions. This is indeed a paradox!

In order that the day-to-day activities of the common man may be carried on and his family and the society may be properly sustained, it is necessary that their primary needs are guaranteed. Arrangements for meeting the requirements of material prosperity should commence from those who are at the bottom. Only after satisfying the elementary wants of the people at the lower strata of society, should we turn our attention to those in the higher strata. In order to achieve this, even if it becomes necessary for those at the top to reduce some of their luxuries and even necessaries, it should be done ungrudgingly. They should willingly accept this kind of self-imposed control on their consumption, for the sake of the general good. But in the matter of character-building, the order is reversed. There is need for is to have people at the top who are the very models in self-control, simplicity and virtuous conduct so that these essential qualities percolate down to the foundation and saturate the various strata below. But it is seen today that whilst the higher classes are indulging in all kinds of luxuries, they expect ordinary men, near the base to be fill of character, and self-control. This is quite opposite of what it ought to be. This way it is not possible to have real progress and proper sustenance of society.

It is also seen that, so long as we were under subjugation, on account of our national self-respect, endeavours were made to mould our lives according to our tradition. At that time, the compulsions of the situation inevitably brought us into contact with foreigners, and the impact it produced on our minds, was one of antagonism to foreign rule. But as soon as foreign rule came to an end, the great inspiration that kept the foreign influences under check, also gave way. Our entire life pattern was transformed. Whilst it is understandable that contacts with different people of the world call for some kind of ‘give and take’ which is so necessary in this business, it was a one-way traffic in our case. We were at the receiving end, and we have been receiving things indiscriminately; even unworthy things we did not reject. If we had emulated an Englishman’s patriotism, his other special characteristics such as devotion to duty, duty consciousness, his unbounded energy, etc. there was nothing wrong. But we only copied undesirable aspects, like their outward life-style, their mode of living, etc, with the result that we started condemning everything that is our own, that reflected our ‘self’. This indiscriminate copying is vitiating the whole social life today at very fast rate. This transformation is harmful for our life-style, character building and a sense of duty. In such a situation, it has become essential for us to be reminded of on identity.

But this re-awakening of self-consciousness is not very easy. There are many a difficulties in the way, one being occasioned by the system of education of the past years. The crafty Englishman who introduced this system of education for us had said, “We shall have black Englishmen, here, in India”. Most of us today answer more or less to this description. They despise everything India. If anybody were to say that we in India have great principles of life which are beneficial to the whole of humanity, the educated amongst us, whose only concern is with his self-advancement, is not even prepared to believe it. We should be grateful to God that on some occasions at least our leaders refer to our national life as centuries old. But this is merely confined to talk. Mere words these. Behind these words, there is no sincerity, or determination to place these luminous thoughts before the people or effort to manifest them in their own lives. Therefore, they are mere hollow words, a veil, or a mask.

On account of the influence of the West, it has become fashionable to say, “I do not believe in God, or Dharma”. It is needless to have faith in these things.” It has become fashionable to negate the very fundamentals of our life-structure. There is, need, therefore, for us to ponder whether these people –English Men – who have made these kinds of impressions on our minds, have any higher philosophy, or any philosophy at all to offer.

From the philosophical standpoint, Communism is much talked of today. Let us see what it really means to us. It has propounded certain doctrines. It talks of certain ideas for a social order, and propagate these ideas with great fanfare. They speak about the need of creating a system for distributing happiness equitably. Non-communist countries of the west do not have any such philosophy except perhaps the much-talked of French Revolution declarations like Democracy, Equality, Fraternity, etc., and their wish to model their political, economic and social systems on these principles. But the statement that all men are equal, its one that is contrary to our experience. As we see it, no two individuals are identical; even twins are no alike. True, there can be identity in their physical needs. But to talk of equality in intellect and physical and mental qualities would be contrary to reality of experience. That is why there is a certain fallacy in their philosophy.

Taking their cue from this philosophy – this declaration of equality – the Communists also endeavour to being in an order where equality would prevail. It may be relevant to ask in this context whether human life is confined to this world alone. Is it that man wants only food, shelter and things pleasing to the mind? Is production and distribution of these is only goal in life? The so called democracies and Communist countries of the west differ only in terminologies and nothing else; both declare that life is confined to matter of this world. It means that it is wealth-oriented. Today the main thrust of life is on wealth (artha) and pleasure (kama) artistic and cultural life. After acquiring wealth, it is necessary to protect and enrich it, because desires are never satiated.

As is well-known, life today is full of wealth-producing activity. Preservation and accumulation of wealth is necessary because nobody feels happy merely by entertaining a desire only once. Therefore, it is said, “न जातु कामः कामानां उपभोगेन शाम्यति” – na jatuh kamah kamaanam upbhogena shamyati.” When wood is thrown into the fire, the fire flares up. Similarly our desires also rebound with great force when satisfied. It is our everyday experience that in spite of physical incapacity to enjoy various pleasures, the thirst for them continues to persist. That is why it has been said, “What shall we do Sir, whilst we have grown old, our desires remain young,”तृष्णा न जीर्णा वयमेव जीर्णाः – trushna na jirna vayamev jirnah.” No passion is completely is satiated. It is therefore, that, to satiate these desires, more and more means are acquired and hoarded, and even the property of other is encroached on, when one’s own is not enough. The form of imperialism that we see in the contemporary world is the culmination of man’s unrestrained lust. This tendency gives birth to the desire to occupy other countries by force. As such, there is no hope for peace in the world. It is inevitable that restlessness in man’s mind should manifest itself in his outward activities. Unfulfilled desires lead to a restless mind. That is one of the causes for conflicts in the world. That is one of the causes for conflicts in the world. It has never been seen that by man’s satisfying all kinds of desires, peace will be attained, or the thirst for enjoyment will be over.

In the 16th chapter of the Gita, there is a description of two types of men, the “divine” type and the “demoniac” type. We see in the world today, men in their greed for their wealth pouncing upon each other; nations pouncing upon each other to grab wealth and establish (their) sovereignty over others. This is demoniac tendency – “I have killed X today, I will kill Y tomorrow. Now I have snatched X’s wealth, tomorrow I will deprive Z of his belongings. I am great. I am philanthropist. I sacrifice. There is nobody equal to me.” Even today, on account of a preponderance of “artha” and “kama”, people egoistically proclaim their being Socialists, Communists, Democrats, etc.

We see the living picture of the 16th Chapter of the Gita depicting the divine and demoniac tendencies in human nature. We do not see any divine power or divine qualities in the west. We shall now have to chalk out our way through this kind of a world. Various people have tried to find out various ways. People wanted to mould their lives according to the doctrine of their religious ideal but that did not satisfy them because those religions did not have any fundamental principles or basic philosophy. “There is only one God and he has a Messenger. Have faith in the Messenger and pray to God devotedly and ask for deliverance from all sins”, they say. But why should a person, who is fully engrossed in the pursuit of “artha” and “kama” and does not believe in God, ask forgiveness? In spite of this, he is asked to have faith. Ordinarily, an intelligent man is unable to have such a faith. First his intellect has to be satisfied; then talk to him about faith. “All your intellectual exercises have reached their end. Intellect cannot go any further”. This has to be the way of approach. He believes only what is intellectually supported. If in the beginning they are told to have faith intelligent men would find it unacceptable. Faith can come only when their intellect is satisfied and when they find it can take them no further.

We see various persons from the west engaged in proselytizing activities here in India. In their own countries, Churches are empty and very few people visit them. People have lost faith in them. They arouse no emotions in their inmost beings. They do not feel inspired. We shall have to offer them a formula that will enable them to restrain their demoniac way of life based on wealth and passion (artha and kama).

Let us see if our national and social traditions can show the way. To me, there is no doubt that they can. Our seers and sages of yore have comprehensively deliberated on these problems and have proclaimed that life based exclusively on artha and kama is the life of an animal, is demoniac and therefore to be abandoned. But they also know that it is not possible for one to free oneself completely from artha and kama. The desire for these will continue to occupy men’s minds to some extent. But it is necessary to find out ways and means to see that man may not become demoniac by allowing unrestrained play to artha and kama. That is why we have been told that desires are not satiated by indulging in them. And secondly, man’s expectation of getting happiness by the acquisition of things is illusory as they by themselves are incapable of giving them happiness. Happiness lies within oneself. It is not external. It is on account of our ignorance that we attribute happiness to some external objects, whereas in reality we only use the external object as a medium to taste happiness from the infinite ocean of bliss which is within us.

It is human destiny to experience this state of delight which is within. This is the fundamental principle which our sages have propounded. The one who rids himself of all wordly ties, one who remains unaffected by the attractions of outside objects, he alone can reach this state of eternal happiness. He is a liberated soul. This is ultimate goal of man. But until he reaches that goal, he will have to exert to some extent in this world, in order to satisfy his worldly desires. We shall, however have to ensure, by having proper checks and balances, that this exercise does not transgress the bounds of decency.

To achieve this goal, we have been told to follow the path of Dharma. Of all the definitions of Dharma, the one widely held and accepted, has the following to say: Just as it is necessary for a man to have mental peace and concentration of mind to experience happiness, so also for an individual to live a safe and secure life, a well-ordered social set up is necessary. If the society is well-organised, is united and which, while allowing different types of people freedom to engage themselves in the pursuit of their respective occupations, motivates them to work for their prosperity, security and a high and noble life for the entire society in a spirit of mutual cooperation – that is Dharma. Creating conditions for the sustenance of society is one of the functions of Dharma. The second function is to prompt men to act according to Dharma. Our scriptures tell us that: “To follow the Vedas, to act according to the fundamental principles of our scriptures, to entertain truthful and pious thoughts and thus to develop the virtues in us is Dharma”. To act according to whatever is necessary and conducive to the realization of the eternal truth, the Soul within us is also Dharma.

To achieve it, we have been asked to cultivate various virtues, to endeavour to manifest them in our daily lives. Now these virtues have been explained at length in our scriptures. We have been advised to cultivate the ten divine qualities of righteous conduct. The BhagavadGita, the most popularly acknowledged scripture, also clearly mentions at various places the different virtues that we should strive to attain. We should read these, think and meditate on them. Let us introspect and find out whether we have them in the requisite measure and if there is any deficiency in us, let us try to make it good. Let us turn our back on all evils. Let us discipline our intellect. This is how each one has been told to lead s full and orderly life.

To bring about a healthy and well-balances mental condition properly restraining our emotions and evil tendencies is also the meaning and function of “DHARMA”. Considering this “DHARMA” as the VERY FOUNDATION of life, and ordering “artha” and “kama’, in accordance with it and fully manifesting in out lives all the virtuous qualities and regularly pursuing the Ultimate Goal, to strive for “Moksha”, the last and final “Purushartha” – this is the while picture of life. This, in short, is the concept of an Integrated Man. This is a task which requires consistency. A person who is solely concerned with “artha” and “kama” is a dissipated man. The one who thinks about the sustenance of the society, one who possesses qualities essential for the integrity of the social order, one who earns wealth and enjoys pleasures without upsetting the balance of society, and one who with restrained and concentrated mind purses any path of worship suited to his aptitude, and by adoring any one of the forms of God, strives to attain the final good of life, is a total or Integrated Man.

In the strife-torn world of today, the spirit to brotherhood is totally lacking. For putting an end to this sorry state of affairs and to bring about a condition of world-peace we will have to take recourse to this fourfold “Purushartha”. There is no other alternative. For this, we should ourselves become worthy of telling the whole world that eternal truth lies in the fourfold “Purushartha”. It is our responsibility to see that by our example and conduct, we educate the whole humanity in the subject of the eternal truth.

This is absolutely necessary. We shall never make any headway in this by indiscriminately aping the west or by the pursuit of unrestrained “Earth Kama”. We shall have to devise ways and means to keep under check this tendency so that a well-ordered society based on the fourfold system, where we shall have opportunities for bringing out the best in us emerges. This alone will do good for the world as a whole.

The Communist today boast that they alone have world philosophy on the strength of which their call for ‘unit of the Proletariat of the World’ is based. Indian philosophy does not discriminate between the working and non-working classes. It calls upon every individual to develop himself into an integral man by following the fourfold “Purushartha”. That is why we say that our traditional life-values and culture have the inherent power of addressing the whole humanity without any discrimination. To acquire this capacity within ourselves, to equip each one of us for this noble task, for the welfare of the world – so that we become better instruments to carry out the Divine Purpose of establishing a well-ordered, well-knit and integrated society, where men will be truthful and self-confident and worthy followers of the fourfold “Purushartha”, is the prime need of the hour.

The world will not follow our ideas, however great, by our merely proclaiming them. It will be of no avail to explain our noble principles to a world which has become totally indifferent to the gentle qualities of humanity, because of its being power-drunk and overwhelmed by affluence and pleasure-seeking; we may have to use the sanctions of force also in our endeavour to persuade them to follow the truth, so that the animal instincts in them could be curbed. Today we see the preponderance of animal instincts in men. Man is no more than a domesticated animal. Only one who has the inward and outward capacity, one who has realized himself, had acquired mastery over his senses, is virtuous, can influence others, can attract them on account of his inner Soul-power and guide them. We must create individuals endowed with such qualities; this ultimate objective in our view, we should organize the society and make it strong and powerful in such a way that it will be happy but not pleasure-seeking, will be prosperous but not directionless.

Prompted by the this kind of high ideology, let us discourage people pursuing demoniac ways in their eagerness to ape the west, inspiring them at the same time to develop their divine nature. Only then they will be competent to show the path of wisdom to our country, society and the humanity. He, who makes it a life mission to devote to this task according to his ability and capacity, is a servant of humanity, a great benefactor of his country. It will be an ideal thing if we engage ourselves in such an endeavour. This propounder of the concept of Integral Humanism Pt. Deendayal Upadhyaya was a great thinker and philosopher. He clearly showed us what an Integral Man is. Creation of such an Integral Man was his mission.

(Based on a speech of Sri Guruji at the Deendayal Upadhaya Sanatana Dharma Vidyalaya, Kanpur on 22nd Dec., 1972).

Courtesy: Deendayal Upadhyaya’s Integral Humanism: documents, interpretations, comparisons, New  Delhi: Deendayal Research Institute, 1992, M.S.Golwalkar “Integral Man: Bharatiya Concept, pg:63-69, Edited by Sri Devendra Swarup.

Rashtriya Swadeshi Suraksha Abhiyan

राष्ट्रीय स्वदेशी सुरक्षा अभियान

While teaching history lessons, the teacher asked the pupils: “When did our Bharat get Independence?”

The students answered in chorus: 15th August 1947.

“At what time?”, asked the teacher…

“Exactly at 12 midnight”, replied the students at ease.

The teacher then asked: “Ok! Good. When did we lose Independence?”

This time, the children were perplexed by the question and none of them could answer!

What a pertinent question in today’s scenario! Truly, it is difficult for anyone of us to pin point a date on which we lost out independence.

The process of losing a country’s independence begins from the time when it starts losing its economic independence. Trade and commerce play a vital role in the economic wealth of every nation. History reminds us that these trade imbalances in the past had forced India to accept foreign rule.

De-Globalisation imperative: Self-reliance & economic Sovereignty

Today, the world is witnessing the rise of a new America, which is trying to protect its interests more vehemently and more systematically by way of local hire policies and visa restrictions, “Be American-Buy American” and “America First” sentiments.  It is walking out from international agreements, such as Paris Climate Change in keeping with the interests of its country.

There was sub-prime crisis; there were fears around disintegration of European economy post the “Brexit”, technology shifts, and the new developments after Donald Trump’s victory. The “JOBLESS GROWTH” due to automation and mechanization is evident in the fact that jobs are being displaced despite the expansion and integration of economies. The “de-globalisation” seems to be the new paradigm heading towards bilateral trade of pre-globalisation era.

Is “Protectionism” still a bad word?

Not anymore! The America’s new regime is the latest example with their overhaul of immigration policies and new visa restrictions on movement of skilled labour, import restrictions, etc. The disintegration of European Union and post “Brexit” economy, all’s not well in the so called ‘Developed’ liberal countries.  The world has woken up to the new international game of “SURVIVAL”.

Ironically, when the realization dawned upon the world community that the rules of the game are unjust, we still fail to wake up to see the new world order!

The rise of Bharat and other Asian economies is causing panic in the geographies where free trade was once preached and propagated. The West is worried about the “China price” which has become the biggest global threat to many countries including USA, Europe and India.

On 24th July, 1991, Dr.Manmohan Singh through his Union Budget declared the liberalization and free-trade policies and subsequently India joined the WTO in 1995 for full economic integration with the rest of the world. (China in WTO since 11 December 2001).

The process of Globalisation started in India in the year 1991. India has suddenly opened the macro-economic flood-gates to join un-calibrated Globalisation, without any debate in the Parliament or in the public discourse, after decades of Socialism slumber. The then Finance Minister in 1991, Dr.Manmohan Singh in P.V.Narasimha Rao Government was hailed as the architect of Free Market Economy or Globalised Economy in India. In 2016, the policy of Globalisation in India completed 25 years. It is a reasonably long time to evaluate India’s experiences with Globalisation. During this period of 25 years – 1991-2016, we have conducted and completed many years of planning under Planning Commission and also recently introduced a new system called NITI Aayog.

The broad Parameters for evaluation of economic growth over this 25 year Globalisation period are set by Dr.Manamohan Singh himself. In his first broadcast to the Nation as Prime Minister on 24th June 2004 (UPA Government) , Dr. Manamohan Singh told: “Growth is not an end in itself. It is a means to generate Employment, banish Poverty, hunger and homelessness and improve the standard of living of our people. It must also be environmentally sustainable.” The success or failure of the Globalisation Policy can be evaluated with reference to our achievement in the goals of,

a) Employment Generation,
b) Eradication of Poverty, (Hunger & Homelessness),
c) Improvement in the standard of living of people,
d) Environmental sustainability of Growth.

After completing 25 years of its economic integration and embracing the West, India is now witnessing a new world order of “de-Globalisation” and reinforced “protectionism” from the same countries who gave us wisdom on capitalism, preached and promoted Globalisation!

In the face of LPG transformation (Liberalization, Privatisation and Globalisation) that went on for the past 25 years, India has witnessed economic downfall w.r.t industry and manufacturing sectors.

Swadeshi Jagaran Manch (SJM) headed by Mananeeya Late Sri Dattopant Thengadi – “Rashtra Rishi”, as we revere him, had forewarned this global meltdown and the imminent threat from China’s economic invasion. He was one of the well-known exponents of Swadeshi movement, which has reappeared five decades after India attained freedom, in the face of a sudden onset of un-calibrated Globalisation.

Swadeshi Jagaran Manch is a “movement” and not an organization

Historically, India has been viewed as being far less vulnerable to global financial crises than other large economies because, it was much less integrated with the global economy than countries like, say, US or China. Today, the growing “Trade-GDP ratio” (indicator of Globalization) indicates the opposite as true. The World Bank data shows that this ratio was around 20% in 1995 and has increased to over 44% in 2015. This was higher than the trade to GDP ratio of the US, Japan or China. During the 1997 Asian financial crisis, India escaped relatively unscathed. However, this will become more complex and challenging in the days to come, if we do not increase the domestic demand and purchasing power locally.

On one side, we are witnessing the downfall of free trade economies that have impacted India and the rest of the world. On the other, India is economically challenged by China and also politically flexing its muscles w.r.t Arunachal Pradesh and North-East Bharat.

Indian Armed forces are on an eternal vigil safeguarding our borders and protecting us from China threat geographically, while economically, it is incumbent on every citizen to secure the internal security of the nation by exercising our duty at an individual level.

India has signed various international treaties since independence and bound to it’s moral and legal obligations. The decades of such treaties and agreements which are against country’s interests cannot be called off at one go. Hence, the recourse to working away with such difficult treaties is for the citizens of the country to join hands. Only questioning the government or delegating the responsibility of blocking the Chinese imports is not sufficient but we need to boycott/shun China’s products and reject their economic invasion and support our National interests at individual levels and organization levels. As the saying goes, Democracy is “by the people, for the people and of the people” and “People’s Jurisdiction” is the ultimate authority in accepting or rejecting the goods.

Hence, the only viable recourse to enable the government in policy formulations is to boycott en-mass all the Chinese products. This will indirectly help the government to take appropriate measures to safeguard our national interests in saving and creating millions of jobs.

History is replete with examples of revolutions being brought about by commoners. No task and service however small, is unimportant like the little squirrel and Vanaraas who helped Maryada Purushottam Sri Rama, Mavali tribal warriors specialized in guerrilla warfare helped Shivaji, Rana Pratap teaming up with Bhills to oust Mughal invaders, Chanakya raised Chandragupta from being a commoner into becoming emperor to protect Bharat Varsh and Dr.Hedgewar who built a gigantic organization like RSS only with few Swayamsevaks…!!

“A small number of people who are a ‘creative minority’ make values live in this world”- Arnold Toynbee.

Let us all come together and participate in this Swadeshi Suraksha against China’s economic aggression.

चीनी वस्तु बहिष्कार करो – बोलो वंदे मातरम

China is using its currency “Yuan” to combat risk of a market-meltdown. It has been using “currency manipulation” (daily currency fixing) as an insurance policy against a full-scale market meltdown. A sharp selloff in China’s stock market, a surprise currency devaluation and a persistent slowdown in economic activity have raised doubts about the ability of China to maintain the hyper-growth levels of the past two decades.

Strike when the iron is hot. The time has come for India to take on China, as China is now experiencing many economic and political challenges from within as well as neighboring countries while going through the crisis of market melt-down. This market melt-down was analysed by many Indian and foreign media. “India Today” magazine carried a special issue with cover page “China Meltdown” highlighting how India can take advantage of that situation.

We as Indians must support and purchase indigenous Indian-made products and boycott the products of China in particular. There was a similar movement sometime back on Social Media (through Twitter, Facebook, WhatsApp) during the festive season of “Deepavali”, to boycott “Chinese-made crackers” and purchase only Indian-made crackers (brands such as Sivakasi). There was overwhelming response that had forced China to withdraw its cheap crackers from the market, which were illegally dumped in Indian market. This movement has also enabled the present Indian government to ban Chinese crackers. China could not put any pressure on the Indian government against this successful campaign.

It is imperative for India to become “self-reliant” once again and strive for the economic sovereignty. Swadeshi Jagaran Manch therefore, calls upon all the citizens of Bharat to participate in “Rashtriya Swadeshi Suraksha Abhiyan”, an economic freedom movement paving the way for India’s economic independence and counter the economic invasion by China (“Vitteya Aakraman”).

This effort requires coming together of all nationalists – political parties, associations, trader communities, farmers, economists, academicians, students, labour organizations and all Swayamsevaks of social and voluntary organizations to work in this awareness campaign and counter China’s economic aggression. We can start the campaign by first educating each and every household, about the ill-effects of Chinese goods that have encroached stealthily into our daily life.

This Abhiyan is scheduled to begin from 6th – 20th, August 2017 and will be conducted at various forums, Schools, Colleges, Hostels, individual houses, apartments, Professional associations (CA, Doctor, Engineers, Lawyers, hoteliers, trader communities) to collaborate and spread the message of Swadeshi and Swavalamban with emphasis on boycotting / rejecting China goods at all levels (micro and macro).

India has trade deficit with 27 countries

India’s top trading partners: at a glance

Source: The Ministry of Commerce and Industry, Dept. of Commerce, Government of India; Wikipedia.

Balance of Trade with China:

If the countries’ exports are more than the imports, then that economic situation is called as “Favorable Trade Balance” (a.k.a “Trade Surplus”). On the other hand, if the countries’ imports are more than the exports, then it is called “Unfavorable Trade Balance” (a.k.a “Trade Deficit”).

There is a growing trade imbalance in terms of excess of imports over exports to China. As per the data available, there is a steady increase in India’s trade deficit with China. The trade volume has reached to almost 50% only with China compared to the whole of India’s international trade.

Import of Capital goods

Though, India’s economic relations with China dates back to ancient times, the bilateral trade with China in the globalised world has only started in 1991. In a short span of time, the trade between the two countries has grown to such an extent that China became India’s largest trading partner in 2008. This has picked up only since 2001, but how come China has turned out to be largest trading partner within just decades?

The capital goods imported from China alone amounted to USD 150 billion plus. India’s import from China is three times more than its exports to China. The UPA government had eased customs and excise tariff to facilitate their entry into India with the least fiscal resistance and consciously ran current account deficits of USD 339 billion. This means what? – To that extent India has lost its wealth to other nations. Who gained from India’s loss? Not America, nor England, Germany, France, Japan, or Russia – countries friendly to India. But it is China. From 2006, year after year, it has been the single biggest beneficiary of India’s import orders.

Bharat is very good market for capital goods. Infact, the whole of Europe put-together is less than the size of Bharat, the third largest economy. The import of capital goods raising such large bills of hundreds of billions, most of which Bharat could make in its own backyard, has drained out a third of India’s GDP under nose of the UPA Congress’s regime in just a decade. The UPA Congress was therefore the architect of the huge deficit syndrome with China!

Why China is our biggest threat?

China behaves like a friendly nation on the surface, while cunningly shows military and economic aggression all along. On the other hand, China shares deep friendly relations with Pakistan, which is another enemy country of India, which is perpetrating terrorism through “proxy-war” across the border day-in & day-out. Infact, China has always behaved as an enemy country since 1949 when they became a communist nation.  While China supports Pakistan directly, it is covertly attacking India through economic invasion (“Vitteya Aakramana”).

For the last 10 years, on many occasions China has opposed anti-terrorism laws on the proposition at United Nations. It has blocked India’s entry into NSG (Nuclear Suppliers Group) – a group of supplier countries of nuclear material such as Uranium. China has also obstructed the flow of Brahmaputra water flowing into India, and also aggressively pursuing infrastructural projects in Pak-occupied Kashmir with its expansionist attitude. Many a times, it has violated border agreements by trying to encroach through incursions and behaving like an enemy country. Hence, there is absolutely no doubt that China is India’s biggest enemy.

India’s border with China:

India had “zero Km” of border with China in 1947. Today, India’s border with China is 3,488 Km (with Tibet & Xinjiang) as per the Ministry of Home Affairs website.

The Line of Actual Control (LAC) is a demarcation line that separates Indian-controlled territory from Chinese controlled territory. Upon independence in 1947, the government of India used the Johnson Line as the basis for its official boundary in the west, encompassing “Aksai Chin”. However, India did not claim the northern areas for including in India’s territory. On 1st July 1954, Prime Minister Nehru wrote a memo directing that the maps of India be revised to show definite boundaries on all frontiers. Upto this point, the boundary in the “Aksai Chin” sector, based on the Johnson Line, had been described as “un-demarcated”).

As per the records of Ministry of Commerce, China’s export of goods to India is worth Rs. 4.25 Lac Crores approximately. However, everyone knows that some of the products that have been exported from China are unaccounted, which do not carry proper bills, and the goods that have been billed seems fake. It is estimated that the real exports from China to India amount to more than Rs. 6, 00,000 Crores, while our exports to China is a mere Rs. 60,000 Crores which is ten times less than our imports!

As of now, India’s import bill from China is so high that we do not have this scale of supply from any other country. Because of China’s cheap quality products being dumped at a low price, it has destroyed many Indian Small Scale Industries leading to more than one Crore unemployed.

By increasing consumption of China products, we are not only strengthening their economy but also decreasing our currency value. It is high time we wake up and realize that China which has always behaved as an enemy country, has to be boycotted, shunned and their products be restricted, else our economic and job creating sectors will be affected to an extent that they cannot be revived, which is a serious matter.

China’s Economic Invasion:

China’s military and strategic aggression against India is visible to the whole world and makes news instantly and frequently. However, its economic aggression is much more dangerous.

Until 1991 when India’s liberalization policies were started, India’s bilateral trade with China was minimal, bore no consequences and was insignificant. But in last the 25 years, our economic relationship with China has sky-rocketed so much so, that by 2011 China has become India’s largest trading partner and it continues to dominate our economy. The bilateral trade balance was a paltry USD 265 million in 1991 which has crossed USD 70.73 billion by 2016. India’s current bilateral trade with China is larger than its combined bilateral trade with Britain, Germany and Japan.

Increase in Trade Deficit

Importing in excess to one’s Exports is called “Trade Deficit”. A country facing the challenge of huge trade deficit will lose exchange powers in the international market. In this scenario, between China and India, China is immensely benefited, whereas India is in a frightening situation. India has been facing this challenge of trade deficit with China for quite some time now. The trade between India and China is drying up to India’s disadvantage. The trade deficit of such a magnitude is a matter of high concern for India.

In 2001-02, India’s trade deficit with China was a mere 100 Crore USD. In 2015-16, this has reached USD 5300 Crore. From the table below, we can see how the Trade Deficit with China has increased under the UPA regime.

As we can see from the table, under 10 years of UPA rule from 2004-05, what started as 9 hundred Crore USD deficit, has reached 3900 USD which is four times increase!

During this period, the total trade deficit was 204 hundred Crore USD. (If there is Trade Surplus (i.e, if Exports > Imports), then the country’s wealth is considered to be increased, which will reduce the trade deficit subsequently).

Since 2006-2014 under UPA government, India’s wealth has reduced by a total of 204 hundred Crores USD (i.e, 9+16+23+19+28+39+39+31). In other words, we have increased India’s principal enemy’s wealth by 204 hundred Crore USD.

Under NDA rule in the first year, in 2014-15, the trade deficit has touched 48 hundred Crore USD. Finally, it has reached 53 hundred Crore USD, a maximum until 2015-16!

Flood of Chinese goods into Indian Market:

In the last 10 years, China’s goods are being flooded into the Indian market in the name of low price, which is world famously known as “China price”. Knowingly or unknowingly, the Chinese goods have been creeping into our households in every aspect and product category, so much so that even “mosquito-racket” market is monopolized by China, which by the way is neither reliable nor eco-friendly. Because of the “China price”, the local vendors are unable to compete. Basic household items like battery torch, pen pencil, kitchen utensils, and plastic toys. Some of these products like Shirt buttons, belts, photo frames, knives, scissors, idols of Ganapathi, Budha, Kite threads are smuggled into India via Nepal.

As a consequence of all this, the enterprise of Sivakasi crackers in Tamilnadu, the enterprise of Aligarh Lock industry in Uttar Pradesh, the toys and idols industry in Channapattana of Karnataka and lacs of dependent families and skilled laborers of these industries have become homeless. Also, the enterprise of component manufactures of Electronics and Power industries, Silk industry (“Reshmi”) in Rama Nagara of Karnataka, have also reached the stage of closure. This is leading to cessation of small scale industries. Under the stringent directives of judiciary, Gujarat and many other state governments have notified the ban on use, sale and purchase of Chinese “Manja” for the kite-flying which is made of razor sharp nylon thread and plastic/synthetic material. The court has issued directions to take necessary steps to prohibit manufacture, use and sale of synthetic kite flying thread like ‘Chinese manja’.

The “Automobile Tyre Manufacture Association” (ATMA) has asked government of India to impose “anti-dumping” duty on Chinese made radial tyres, expressing the concern that India’s tyre industry may close down affecting the whole automobile industry. Kerala cultivates natural rubber; hence that industry will also be affected heavily because of Chinese tyres. Similarly, Steel pipes manufacturing sector has also been affected by China products.

“Unfair Trade Practices” and WTO

China is selling the products at subnormal and “predatory price”– in other words for losses! This is called “dumping” in the macroeconomics parlance which is also WTO terminology. If a company exports a product at a price lower than the price it normally charges on its own home market, it is said to be “dumping” the product, which is considered as “unfair competition”.

Many governments take action against dumping inorder to defend their domestic industries and economic sovereignty. In India, the concept of Unfair Trade Practice draws a parallel from the previously applicable Monopoly Restrictive Trade Practice (MRTP) Act, 1969 which has been replaced by the Competition Act, 2002 and multiple times amended by the Competition (Amendment) Act in the years 2007, 2009, 2011 to discipline the Predatory pricing, Cartel, M & A (Merger & Acquisition), etc.

However, for the governments to challenge the companies against dumping with “anti-dumping” duty, the WTO legal procedure is very complex and tedious. The products being dumped have to be sent to laboratories for tests; the actual product price has to be evaluated by gathering data on production costs at source and the whole cost-benefit analysis worked out. The WTO agreement does not pass judgment. Its focus is on how governments can or cannot react to dumping — it disciplines anti-dumping actions, and it is often called the “Anti-Dumping Agreement”. The WTO agreements mandate to uphold the principles, and also allow exceptions in some circumstances. Three of the issues are:

  • actions taken against “dumping” (selling at an unfairly low price)
  • subsidies and special “countervailing” duties to offset the subsidies
  • emergency measures to limit imports temporarily, designed to “safeguard” domestic industries.

There are many different ways of calculating whether a particular product is being dumped heavily or only lightly. The agreement narrows down the range of possible options. It provides three methods to calculate a product’s “normal value”. The main one is based on the price in the exporter’s domestic market. When this cannot be used, two alternatives are available — the price charged by the exporter in another country, or a calculation based on the combination of the exporter’s production costs, other expenses and normal profit margins. And the agreement also specifies how a fair comparison can be made between the export price and what would be a normal price.

Calculating the extent of dumping on a product is not enough. Anti-dumping measures can only be applied if the dumping is hurting the industry in the importing country. Therefore, a detailed investigation has to be conducted according to specified rules first. The investigation must evaluate all relevant economic factors that have a bearing on the state of the industry in question. If the investigation shows dumping is taking place and domestic industry is being hurt, the exporting company can undertake to raise its price to an agreed level in order to avoid anti-dumping import duty.

Detailed procedures are set out on how anti-dumping cases are to be initiated, how the investigations are to be conducted, and the conditions for ensuring that all interested parties are given an opportunity to present evidence. (Source: Understanding WTO Agreements)

The government is bound to WTO and any action taken based on the above laws and procedures has limitation. In democracy, “People’s Jurisdiction” is the ultimate authority in accepting or rejecting the goods. The “consumer” plays a vital role in the nation’s economics discourse. If we as consumers are convinced, we can always reject the products. This will empower the government to reconsider its policies and convince the WTO of the same.

America: America too is facing the similar threat from China. China can produce many consumer goods for lower costs than other countries can. Americans ofcourse like any other country want these goods for the lowest prices. How does China keep prices so low? Most economists agree that China’s competitive pricing is a result of these factors:

  • Strategy of “Export at any cost” (in other words for losses!)
  • Low standard of living, which allows companies in China to pay lower wages to workers.
  • Exchange rate that is partially fixed to the dollar.

This means that many American companies cannot compete with China’s low costs. As a result, US-manufacturing jobs are lost. From time to time, legislators try to impose tariffs or other forms of trade protectionism against China to bring back the jobs.

There is a famous book titled “A Year Without Made In China: One Family’s True Life Adventure In The Global Economy” authored by Ms.Sana Bongiorni  – an American home maker. The book has become the best seller across the world.

China is selling its sub-standard goods at such low prices that people are attracted to buy them. This has led to large scale, medium-scale and small-scale industries to shut down. This inturn leads to China acquiring “monopoly” status in Indian market. Once China monopolizes the market, it can play with the “pricing” strategy to their advantage. Once the Indian industry closes completely sector by sector, then the Indian economy becomes weak, which is what Chinese want.

There is another reason why China is selling its goods at subnormal prices. China is a communist country where there is no democracy, no fundamental rights for people and “Free Press” unlike India, and the government forcibly buys land from the farmers by paying very less compensation and sells it to manufacturing industries. In China, Right to Land is a contractual management for limited period. Farmers are exploited; Agricultural laborers/workers have no rights and hence are paid minimal wage and made to work in double shifts as bonded laborers; even prisoners are made to work in the factories. By doing so, they are managing to keep the daily wages minimal thus saving labour costs. Along with his, they are providing electricity to the industries at a very low cost. They also make sure their currency “Yuan” stays at minimum all times – this is called as “Currency manipulation”.

These are the some of the short cuts that China’s communist government manages the pricing to be low compared to any other international market pricing. And that is how they are able to “dump” their goods into international markets aggressively.

Look at the China’s share in various manufacturing goods across the sectors:

Value vs. Volume:

India’s imports from China include Power generating machines, Telecommunication towers, Solar-power panels and equipment for a high “Capital goods” in high Volumes. Whereas, India exports low capital goods such as raw leather, raw cotton, iron ore and other such metals. On the subject of Buffalo meat, out of the total of India’s exports of Buffalo meat, 45% share goes to China alone.

In this way, by importing high capital goods and exporting low capital (low Value) goods, we are witnessing Trade Imbalance and Deficit. India is not only importing raw materials from China, but also importing finished goods which are taking a toll on the trade balance and domestic market.

Look at the below figures of our imports and exports for the recent years:

In the year 2012-13, we have been able to export only 25% compared to imports. In 2013-14, we have been able to export only 35% compared to imports. In the 2014-15, we have been able to export only 25% compared to imports.  This indicates that our exports w.r.t imports are dwindling rapidly.

‘Formal’ and ‘Informal’ sectors:

The informal sector, is neither taxed, nor monitored by any form of government. Unlike the formal economy, activities of the informal economy are not included in the calculation of gross national product (GNP) and gross domestic product (GDP) of a country.

This terminology is a colonial construct, explains Prof.R.Vaidyanathan in his column hereThe informal sector consists of all economic activities that remain outside the official institutional framework (statutory control and implications and governmental regulation). Consequently, the government has little control over the quality of employment. Generally, agricultural activity does not come under the purview of the informal set. This usage has come from Latin-American countries, where US experts have identified a large number of economic activities not regulated by government and many of them “underground” in nature – hence the term `informal.’

China’s attack is happening on both formal and informal sectors. Whereas 90% of the employment is provided by these faceless people, the informal sector is not given more importance and incentive. Informal sector plays a vital role in Bharat. China is not allowing import of Indian goods using unfavorable trade practices.

To reduce this trade deficit with China, the then Prime Minister of India, Dr.Manmohan Singh had once persuaded the authorities of China to purchase more & more Pharmaceuticals, Information technology products and buffalo meat, etc from India during his visit to China. However, that effort did not yield any positive outcome. Since then onwards even after 2014, all the government’s efforts have not been able to yield any result.

In the month of September’ 2014, when China’s President Mr.Xi Jinping visited India, there were 16 agreements made with the new NDA government under Prime Minster Narendra Modi. Among those agreements, there were these investment plans China has pledged to invest in India:

  • Modernization of India’s ageing railway system with high-speed links and upgrade.
  • Set up industrial parks in Gujarat and Maharashtra. To this effect, the government of Gujarat has identified 400 acres of land & the Maharashtra government has identified 1250 acres land.
  • Give more market access to India to products, including pharmaceuticals and farm products.
  • 20 hundred Crore USD worth Investment opportunity for China

To correct the “trade imbalance” between India and China, the new Indian government thought of extending a huge investment opportunity to China as compensatory. However, this remedy seems to be more harmful than the disease! Once the investment opportunity is given to enemy nation China, they will transfer the entire profits (double/more the profits than they currently extract from India) in large scale with absolutely no barriers. There will be collateral damage that will destroy the India industry forever and survival itself becomes difficult. Indian economy will then be at the mercy of China!

Inspite of opening up so many sectors for investments and liberalization, in return, China did not give any such opportunities for Indian industries to flourish in China.

Mobile/telecom manufacturing sector dependent on China imports

Telecom subscriber base in India has grown substantially in the recent decades. India is currently the second-largest telecommunication market and has the third highest number of internet users in the world. India’s telephone subscriber base expanded at a CAGR of 19.96 per cent., reaching 1058 million during FY07–16. In March 2016, total telephone subscription stood at 1058 million, while tele-density was at 83.36 percent, which will contribute substantially to India’s GDP, according to report prepared by GSM Association (Source: IBEF).

The Mobile manufacturing industry has also picked up keeping up pace with the speed of technology. Many local phone-maker companies have also sprung up giving tough competition to the international players.  However, this has become more of a ‘screw-driver technology’, meaning assembling units for multi-national companies than indigenous in reality, as most of the manufacturing is still being done overseas.

Why? The mobile manufacturers have taken advantage of importing phones as “semi-knocked down” kits (SKD)” with most components already soldered to the main circuit-board (PCB) of the handset. These kits are brought in as components at “zero duty” and then simply assembled into devices with value addition of just 1-2 per cent.

On the other hand, if the phone companies were to import “completely knocked down” (CKD) kits, it would push up the local value addition to 7-10 per cent as the assembling requires more labour and a proper assembly line. But due to “zero duty” on SKDs, most brands prefer to do just a screwdriver job.

With components largely imported from China, local value-add remains low. The ‘Make-in-India’ programme for mobile phones is perhaps helping China more!

Industry experts say, policies encouraging CKDs will kick-start the overall mobile phone manufacturing industry in India. In the last two years, 40 new handset manufacturing units and 30 mobile components/accessory units started operations in India. Indigenous production of handsets has gone up from 11 crore units valued at ₹ 54,000 crore in 2015-16 to 17.5 crore units at ₹90,000 crore in 2016-17. (Source: Hindu Business Line article May 12, 2017, Phones ‘Made in India’, cash registers ringing in China).

Pitching for duty

Formal representations to the government were made by mobile industry bodies (such as MAIT – Manufacturers Association for Information Technology), requesting the government to impose a 12 per cent duty on the import of SKD kits. In 2014, 260 million mobile handsets, valued at close to $18 billion, were sold in India. Keeping aside the distribution margins, taxes and duties, the annual import bill amounts to $12 billion. (Source: The Hindu Business Line, Dec’ 10, 2015)

Local value-addition

The numbers are big, but the total local value-addition done is small — less than 6 per cent at as at end 2016. The total value of mobile phones sold in India in 2016 was about $12 billion (cost to manufacturer) on a retail value of $16 billion. Of this, only $650 million worth of value-addition was done locally. That comes to 5.6 per cent. Essentially, Indian companies continue to run screwdriver shops. To increase value-addition in India, last year the government has enforced 12.5 per cent duty on imported batteries, chargers and headphones, pushing most manufacturers to source these components locally.

The latest reports suggest that the Government is set to levy a customs duty of at least 10 per cent on imported mobile phones (and accessories) under GST to safeguard (and retain) benefits passed on to local manufacturing, but, it is yet to make an official announcement on the same. Imported phones and parts are still expected to cost more or less the same, but, the move would surely encourage players to rather Make in India than elsewhere.

1st’ July 2017, Update: Government of India imposes 10% Basic Customs Duty (BCD) on imported mobile equipment:
(In a notification late night on 30th June 2017, the department of revenue said that the government took the decision “on being satisfied that it is necessary in the public interest so to do.” The government in a press release issued on July 1st added that 10 per cent BCD had been imposed on “Cellular mobile phones and specified parts of cellular mobile phones like charger, battery, wire headset, Microphone and Receiver, Key Pad, USB Cable“. India’s telecom trade promotion organizations, TEMA (Telecom Equipment Manufacturers Association of India), CMAI (Communication Multimedia and Infrastructure), Indian Cellular Association and domestic telecom manufacturers have welcomed the government’s move to impose 10 per cent basic custom duty (BCD) on charger, battery, wired headset, microphone receiver, key pad, USB cable. They mentioned that the decision to impose BCD would also clear any roadblocks in the way of a long-term manufacturing roadmap that offers tax benefits to those making mobile phone components within the country. It would also increase local value addition to 35-40% from the current 6%).

13 July’17, Update: SJM demands termination of Chinese Metro coach contract:

Press Release: The Swadeshi Jagran Manch has demanded termination of contracts to Chinese manufacturers for Metro coaches. SJM in a letter to the Prime Minister on 13th July, 2017 stated that the claim of “Make in India” is a farce since the Chinese resort to assemble the parts in place of manufacturing. “Two recent announcements are worrying us, which include Chinese company SAIC Motor Corporation Ltd, the joint venture partner of General Motors, taking over its India manufacturing plant at Halol in Gujarat and state owned China Railway Rolling Stock Corporation (CRRC) – getting a go ahead to set up metro rolling stock manufacturing unit in Multi-Modal International Cargo Hub and Airport in Nagpur” the SJM convenor Ashwani Mahajan has stated in a letter to the Prime Minister.

China as sympathizer of Pakistan’s sponsored Terrorism against India

India was the most affected nation by terrorists like Maulana Masood Azhar, Zaki-ur-Rehman, Syed Salahuddin, etal., from Jaish-e-Mohammed of Pakistan on 26/11 terror attacks in Mumbai and also recently in Pathankot Airforce station in Punjab state of India.

Whenever India adopted a resolution against these terrorists at United Nations to declare them as terrorists, China has opposed it and used its veto power at UN to show its hatred towards India.

China has blocked a similar move by USA’s resolution to designate Pakistan-based militant group chief Maulana Masood Azhar as a terrorist by the United Nations (UN), barely weeks after India’s similar efforts were blocked by China.

In all such cases where strong action was sought from China against terrorist organizations Lashkar-E-Taiba, Jamaat-Ud-Dawa, etc, China had either ignored or acted against all such moves to declare them as terrorists, thus proving its dislike against Indian state.

China’s military exercise at Pakistan-Occupied Jammu-Kashmir (PoK) & Infrastructure Development

China has occupied about 38,000 Sq.Km of India’s territory during the 1962 war. Pakistan has also occupied illegally 5,183 Sq.Km land belonging to India which is now with China. More so, Pakistan has occupied 68,000 Sq.Km in Jammu Kashmir Gilgit-Baltistan area, where China and Pakistan in MoU have started Economic Corridor, despite India’s opposition. China along with Pakistan has been continuously interfering with India’s border.

Economic Corridor (CPEC, OBOR, SEZ): China–Pakistan Economic Corridor (CPEC) is a collection of infrastructure projects that are currently under construction throughout Pakistan. China claims, CPEC is intended to modernize Pakistani infrastructure and strengthen its economy by the construction of modern transportation networks, numerous energy projects and special economic zones.

Recent Chinese reports claim that following the launch of CPEC in Pakistan, the country has received investments worth more than the originally valued at USD 46 billion; which is is now worth USD 62 billion!

Another new deal called One Belt One Road (OBOR) with China, an ambitious project which was signed in Kathmandu (Nepal), would allow development of cross-border connectivity and more with China by the countries – Pakistan, Sri Lanka, Maldives and Myanmar, Bangladesh and Nepal. With the exception of Bhutan, which has no diplomatic ties with China, every other South Asian country has signed into OBOR.

As per China, the “One Belt One Road” initiative was meant to focus on improving connectivity and cooperation among Asian countries, Africa, China and Europe, with emphasis on enhancing land as well as maritime routes. The policy aims to boost domestic growth in the country as per China claims. Experts have noted that OBOR is also a part of China’s strategy for economic aggressive diplomacy.

India has not only boycotted Xi’s OBOR summit but has also portrayed OBOR as an opaque, neo-colonial enterprise seeking to ensnare smaller, cash-strapped states in a debt trap. India has raised objections and refused to join the OBOR initiative because of the China-Pakistan Economic Corridor (CPEC), which is a part of OBOR and it passes through India’s territory and in Pakistan-occupied Kashmir (PoK) affecting India’s sovereignty.

China blocks Brahmaputra tributary – impact on water flow in India

The Brahmaputra is one of the major rivers of Asia, a trans-boundary river which flows through China, India and Bangladesh. China’s had threatened to block Brahmaputra tributary “Yarlung Zangbo” from flowing into India thus exposing its cunningness. China is diverting Brahmaputra river water by building up five huge tunnels for power generation and thereby causing decrease in the amount of water flow to India.  The state of Assam is constantly under threat of being flooded because of the dam built across the Brahmaputra tributary by China. The Zangmu Dam is a gravity dam on the Yarlung Zangbo/Brahmaputra River 9 km (5.6 mi) northwest of Gyaca in the Tibet Autonomous Region of China.

China’s opposition to India’s entry into NSG (Nuclear Suppliers Group)

India has so far has not been able to become member of NSG (Nuclear Suppliers Group) only because of China’s opposition, while most of the countries are supporting India.

China opposes India’s permanent membership in UNSC

India is the only country that had supported China in the late 1950’s to get permanent membership of United Nations Security Council. Ironically, China is now opposing India’s permanent membership of UNSC.

China’s constant incursions into India’s territory

China with its expansionist attitude is transgressing India’s territory about 300-450 times a year thereby politically and economically weakening Bharat.

China claims about 90,000 Sq.Km land along with the state of Arunachal Pradesh as their territory, and constantly obstructing India’s developmental plans that have been taking place in that area.

China shares a border of about 4057 Km length territory with India, where it has built roads and rail connectivity in the entire stretch, supplies electricity and also has good infrastructure and has established nuclear plant very close the India’s border. In addition to all these, China allocates about five times India’s Defense budget and further expanding.

China is expanding its Defense base in Pakistan, Nepal, Myanmar, Bangladesh and Sri Lanka, who are India’s neighbours., while these countries (Sri Lanka & Bangladesh) have out-sourced their Ports maintenance to China.

China claims Arunachal Pradesh as part of their territory representing Arunachal Pradesh in their official maps, and so much so that they have ‘relaxed’ visa norms to the extent that China invites the residents of Arunachal Pradesh through “stapled visas” (in other words no visa is required to cross over and thus asserting Arunachal Pradesh their part of the country).

When China came to know that when ex-Prime Minister of India, Dr.Manmohan Singh was visiting Arunachal Pradesh, the state of India called as “सूरज की धरती” or “the land of rising sun”, China has rushed to wake up India’s Ambassador to China (Nirupama Rao) in the wee hours at 2:00 AM on 21st, March, 2008 and staged its protest and threatened India of its consequences. The then PM Manmohan Singh was forced to return from Tawang district of Arunachal Pradesh and discontinued his visit to other places.

Chinese troops have stopped KAILASH MANASAROVAR Yatra:

Kailash Manasarovar Yatra (KMY) is known for its religious value, cultural significance. It is undertaken by hundreds of people every year. Holding significance for Hindus as the abode of Lord Shiva, it holds religious importance also for the Jains and the Buddhists.  It is open to eligible Indian citizens,holding valid Indian passports, who wish to proceed to Kailash-Manasarovar for religious purposes. Ministry of External Affairs does not provide any subsidy or financial assistance to Yatris. (Source:

China has refused entry to the first batch of some 50 pilgrims, who were supposed to travel to Kailash Mansarovar, via Nathu La in Sikkim. Chinese troops have also stopped the batch of pilgrims that was proceeding for Kailash Mansovar yatra. Ministry of External Affairs organizes this Yatra during June to September each year through two different routes – Lipulekh Pass (Uttarakhand),and Nathu La Pass (Sikkim).

Chinese troops transgress Sikkim sector in Doka La in Sikkim

Very recently in this month of June’2017, our brave jawans of Indian Army formed hard stop in the form of “human wall” along the Line of Actual Control (LAC) to stop Chinese PLA incursions and transgresses Doka La in Sikkim state of India. In the name of PLA wanting to build a road at Sikkim-Bhutan-Tibet tri-junction, China is using all its nefarious tactics to transgress into India’s territory.

These incursions have become a trend whenever India makes global news. China is nervous and adopting cheap tactics of intimidating diplomacy across the border states of North East. The bunkers have been destroyed in Lalten area of the Doka La area.

It is not the first time that such a transgression has happened at the Doka La, a place at the Sikkim-Bhutan-Tibet tri-junction. The Chinese forces had in November 2008 destroyed some makeshift Indian army bunkers at the same place.

It’s time India used its most powerful weapon against China: Trade”– says the Geo-strategist and defense expert Sri Brahma Chellaney in his column in HT, 30 June 2017.

He writes: “by importing $5 worth of goods from China for every $1 worth of exports to it, India not only rewards Chinese belligerence but also foots the bill for Beijing’s encirclement strategy.

He has also cautioned thatChina is waging a psy-war through media… Make no mistake: Despite the cozy ties with Washington, India, essentially, is on its own against China. It needs to bolster its border defenses and boost its nuclear and missile deterrent capabilities”.

Our Responsibility at Individual & Societal level:

The questions that were raised against un-calibrated globalization remain un-answered.

  • Is it possible in near future for a Single World Currency?
  • “Perfect Competition” vs. Monopoly, Oligopoly (Unfair competition).
  • IPR issues and technology denials– Growing issues on Intellectual Property rights & court cases under WTO arbitration.
  • Multi-lateral free-trade agreements turning out to be impractical?
  • Basic construct of Globalisation and free trade was built on “Cooperation” rather than “Competition“. Is this truly working that way?
  • Restrictions on free movement of Skilled labour across continents.
  • Are we heading towards De-Globalization?

Obviously, there are geo-political factors that cannot be ignored. How can the world then talk of ideas and innovations and interplay of ideas, but yet fight for IPR and patents?

Every nation has to do its own SWOT analysis (Strengths, Weaknesses, Opportunities, Threats). Likewise, Bharat also needs to have “its” own model of sustainable development based on Agriculture & Employment-centric manufacturing, which is truly a Swadeshi model of “production by masses” and not “mass production“.

The government must also strive to negotiate the international agreements of trade and commerce on our own terms & conditions.

To attain economic sovereignty, the nation has to become self-reliant. We can only achieve this goal through our individual and social responsibility.

Swadeshi Jagaran Manch therefore appeals to,

  • Completely boycott China products and services
  • Create awareness in our localities to boycott China products and services
  • Traders to shun the China products from selling
  • Create awareness about China’s cheap / low quality products and fake food products. (Eg: Plastic rice, cheap quality and low grade Cancer causing toys, etc).
  • Spread the awareness through Social Media
  • Join the Swadeshi-Suraksha campaign meetings, seminars, rallies.

Let us all join hands in large numbers and participate in Rashtriya Swadeshi-Surakhsa Abhiyan and make it a grand success, starting on 6th August’ 2017. #BOYCOTTCHINA

(Courtesy: Based on the seminar talks and inputs from Sri.B.M.Kumaraswamy, renowned Economist, Retired Professor in Economics and Clean environment expert, Akhil Bharatiya Sah-Samyojak, Swadeshi Jagaran Manch).


  1. The Ministry of Commerce & Industry, Department of Commerce, Government of India.
  2. The Ministry of Home Affairs, Government of India.
  3. The WTO Organisation Website.
  4. Kailash Manasarovar Yatra website, The Ministry of External Affairs, Government of india.
  5. Swadeshi Jagaran Manch
  6. Various business news paper reports and magazines referred in the article.
  7. Wikipedia.

Remedy for Monumental mismanagement of the economy by Dr.Manmohan Singh


In his article (“Making of a mammoth tragedy”, The Hindu, December 9), Dr. Manmohan Singh attacked the demonetisation of high denomination notes (HDNs) by the National Democratic Alliance (NDA) government as the “making of a mammoth tragedy”. In his prose, Dr. Singh speaks less as an economist in which capacity he is respected more than as the former Prime Minister, the role which has actually dented his image. Yet it is best to respond to him on economic issues which he has kept away from, not to his political verses. Undisputed facts, not alluring rhetoric, should decide whether demonetisation is a tragedy or a remedy. Is it a monumental mismanagement of the economy as Dr. Singh charges? Or is it a remedy for the accumulated filth as Prime Minister Narendra Modi claims? To know the answer, the story of the Indian economy from 1999 to 2004 under the NDA and from 2004 to 2014 under the United Progressive Alliance (UPA) needs to be recalled.

Real versus statistic

During the NDA rule (1999-2004), real GDP grew by 27.8 per cent, annually 5.5 percentage points. Annual money supply, that fuels inflation, by 15.3 per cent. Prices by 23 per cent, annually 4.6 per cent. Asset prices rose only moderately in those five years. Stocks rose by 32 per cent; gold by 38 per cent. Taking Chennai as an illustration, land prices by 32 per cent. Jobs rose phenomenally, by almost 60 million. The NDA also turned in a surplus of $20 billion in 2002-04 in the external sector, after decades of unending deficits, save in two years in the late 1970s.

Now come to the UPA rule under Dr. Singh, the economist Prime Minister. In the first and best six years of the UPA (2004-05 to 2009-10), before it was hit by scams, real GDP grew by 50.8 per cent, annually 8.4 percentage points — one-and-a-half times NDA’s. The world celebrated Dr. Singh. The UPA was intoxicated by the “high growth” story. But how many jobs did UPA’s high growth produce? Believe it or not, just 27 lakhs against 600 lakhs during NDA’s five years, according to NSSO data. UPA achieved one-and-a-half times NDA’s GDP growth, but just 5 per cent of its job growth. Dr. Singh now bemoans that Mr. Modi’s demonetisation will stifle jobs!

Move on. In the six years, prices rose by 6.5 per cent (4.6 per cent under NDA). The external sector deficit was $100 billion (against NDA’s $20 billion surplus). Did high petroleum prices force it? No. Zero-rated customs duty-led capital goods imports which topped petroleum imports was the culprit.

 Asset inflation

Why was the UPA’s high growth jobless? The well-kept secret is that huge asset price inflation, not production, passed off as high growth. In the first six years of the UPA, stock and gold prices jumped by three times — annually by 60 per cent. Property prices doubled every two-three years. In Gurgaon, not on the property map in 1999, land prices rose by 10-20 times. Asset inflation in six years was three times the annual nominal GDP growth. The asset inflation not the result but the cause of the UPA’s “high growth”! How? Modern economics deducts the non-asset price inflation from nominal growth to know the real growth. But it sees asset price rise as wealth and prosperity and adds it to GDP. See how this economics worked for the UPA.

 Unmonitored Rs.500/1,000 notes

Economics says money, growth, prices and jobs are inter-related. Apply this rule to the NDA and UPA periods. During 2004-10, average money supply grew annually 18 per cent (15.3 per cent under the NDA). But asset prices rose by several multiples of it. The moderate rise in money supply over the NDA’s number does not explain the huge asset inflation. The clue hides in the rising unmonitored HDN cash stock with the public which made black money deals easy. In 1999, the cash with the public was 9.4 per cent of nominal GDP. By 2007-08, instead of falling due to rising bank and digital payments, it jumped to 13 per cent of nominal GDP. Later it began hovering around 12 per cent. More critically, the HDNs with the public more than doubled from 34 per cent in 2004 to 79 per cent in 2010. On November 8, 2016, it was 87 per cent. The average annual rise in HDNs was 51 per cent between 2004 and 2010 and the annual rise was 63 per cent by 2013-14. The Reserve Bank of India noted that two-thirds of the Rs.1,000 notes and one-third of the Rs.500 notes — that is over Rs. 6 lakh crore now — never returned to banks after they were issued. The unmonitored HDNs roaming outside banks began driving up the gold and land prices by black cash and the stock prices through Participatory Notes (PNs) — which are largely hawala transfers out of India — that came back pretending as foreign investment in stocks. The PNs rose from Rs.68,000 crore in 2004 to Rs.3.81 lakh crore in 2007.

How did the asset inflation lead to the UPA’s “high growth”? Inflated asset prices to the extent realised by sale got accounted as part of income and included in GDP. Large part of the gains on stock sale got added to GDP with very little tax under Securities Transaction Tax. The spurious wealth effect also led to high-end consumption. The annual private consumption growth averaged 18 per cent till six years to 2009-10 — 80 per cent over the NDA average. The fake wealth effect, powered by HDN cash, scripted the UPA’s “high growth” story. HDNs outside banks took refuge in stocks, gold and land, produced capital gains-led growth and consumption. Had the HDNs circulated through the banking system, it would have multiplied through the fractional reserve model, reduced the inflation and interest, and funded the small-and-medium enterprises starved of organised funding.

 Catch-22 situation

The curse — asset inflation inspired jobless growth — seems irreversible till unmonitored HDNs roam and fuel fake growth. Dr. Singh had had enough wake-up calls when the share of HDN cash was escalating year after year from 2004. He could have de-escalated the hugely growing cash economy had he remonetised the HDNs by lesser denominations without demonetisation — sparing the people of discomfort and economy of short-term damage. Of course, he would have lost the “high growth” brand that made UPA rule an economic success. To unmask this deception and revive job productive growth, the unmonitored HDNs needed to be brought to account forcibly. By his inaction, undeniably, Dr. Singh had landed the economy in a Catch-22 situation. The Modi government could either opt to continue the status quo of jobless growth or force temporary decline in growth to reinstate real growth and jobs. It opted for the latter. Even an undergraduate student in economics will tell you that it will cause hardship and hit growth in the short run. A Cambridge economist is not needed to write a column on that. It is already late. If the status quo of unmonitored HDNs were to last for another five-six years, the size of HDNs would have become so huge that no government may have been able to act against it — inevitably inviting a huge crisis, both internal and external. Prime Minister Modi has rightly called the demonetisation as “kadak chai” (bitter pill). That HDNs promoted high bribery and helped terror funding through fake HDNs cannot be disputed at all. Far from doing a monumental misappropriation or making a “mammoth tragedy”, Mr. Modi is correcting the monumental mismanagement of the economy by the economist Dr. Singh.

 Courtesy – The Hindu