Skip to main content

Deepening industrial crisis, Gandhian model of economy and post-globalisation scenario

Child climate change activist Greta Thunberg, her mother opera singer Malena Ernman
By Sandeep Pandey*
On August 20, 2019 the "Indian Express" e-paper carried  an unusual advertisement by the Northern India Textiles Mills Association about Indian spinning industry facing a huge crisis. The spinning mills are incurring huge loses, they are not in a position to buy Indian cotton, livelihood of 10 crore people, directly or indirectly, dependent on textile industry and a larger number of farmers who produce cotton are in jeopardy.
Another advertisement which appeared earlier on August 1 in the "Economic Times" on behalf of the Indian Tea Association, talks about tea industry in crisis. Because of increasing losses to Tea Gardens livelihood of over 10 lakhs workers is threatened. On August 21 "Outlook" reports that Parle Products Private Limited, the largest biscuit manufacturer in the country, may slash the jobs of 10,000  employees if the government doesn't reduce Goods and Services Tax.
On the other hand the government is on a hundred day spree, after the second time Narendra Modi has become Prime Minister with a thumping majority, named big-bang economic reforms as part of which public assets belonging to Public Sectors Units or even government departments like Ordnance Factories are either up for sale or corporatisation.
The government has a target to mop up Rs 90,000 crore through this process under the euphemism of 'asset monetisation'. Last year it exceeded its target of Rs 80,000 crore, a proof of how aggressively it is selling public assets to private or other government companies, to meet its fiscal deficit.
Are these healthy signs for a country's economy? A crisis is looming large with the government pretending that everything is hunky-dory. The PM has a vision of making India a $5 trillion economy by 2025. In his last term as PM his high profile skill development programme meant for generating employment ended up with offering 10% reservation in jobs to economically weaker sections among the general category of population just before the elections.
Advertisement in "Indian Express"
Mahatma Gandhi had a completely different view of economy. He clarified that he was not opposed to machinery per se but the craze of machinery as labour saving contraptions. The culmination of labour saving process is in thousands becoming unemployed. Gandhi said he wanted to save time and labour not for a fraction of mankind but for all.
He wanted concentration of wealth not in hands of few but in the hands of all. He believed that the real reason behind the labour saving argument is greed for more profit. Mahatma Gandhi kept human beings at the centre of his economic thinking. He believed that machines should not tend to atrophy the limbs of human beings.
According to his own admission he did make intelligent exceptions. For example, he thought that sewing machine was a useful device. Similarly, he was for a machine which could straighten crooked spindles, even though spindles themselves would be made by the blacksmiths in his scheme of things.
When questioned as to where would he draw the line, he said where they would cease to help the individual and encroach upon the individuality. He didn't believe that rapidity of motor cars was needed as it was not the primary wants of human beings.
Mahatma Gandhi compared machine to the human body which served its purpose only to the extent till it was helpful towards the growth of soul. He believed that machines, like human body, were inevitable. But human body, according to him, a fantastic piece of mechanism is nevertheless a hindrance to liberation of the soul.
Gandhi thought that machinery had impoverished India and was symbolic of sin because the workers had become slaves and mill owners had become rich immorally at the expense of workers. He had the conviction that poor could fight British but the rich would always support them.
A tea garden in Darjeeling
When asked whether the mills should be closed down, he said that would be a difficult decision but they should definitely not expand. It is interesting to note that in the abovementioned present crisis faced by tea industry the Indian Tea Association has urged the government to ban expansion of tea areas to contain oversupply for 5 years.
In the context of the question about what we should do with all the industrial products around us, Mahatma Gandhi advised to follow the policy of swadeshi and use of articles that were used before modern products arrived in the market.
He admits that it may not be possible for all human beings to give up all machine made things at once but they could find out what they could give up and gradually cease to use it. He also advocated that we should not wait for others to give up and should take the initiative.
A good recent example is that of Greta Thunberg, the child climate change activist from Sweden who spearheads an ongoing movement called Flight Shame and Train Bragging where she, her mother opera singer Malena Ernman and number of other European citizens have stopped flying and started travelling by trains as there is less carbon emission in latter compared to the former.
There is a significant spike in rail travel and drop in air travel in Sweden because of this movement. Similarly, a Lucknow based health activist Bobby Ramakant has given up ownership and driving of car, preferring to walk, cycle and use of public transport.
Bengaluru-based activist Gurumoorthy Mathrubootham has given up domestic flying and uses trains instead. We could find examples like these individuals around us who have taken an initiative to reduce their dependence on machines.
In crisis... Parle-G
In It appears that the ultimate challenge to the modern paradigm of development based on industrialisation will come from the climate change crisis.
But the most astonishing validation of Gandhian thinking was when the National Rural Employment Guarantee Act (NREGA) was introduced in this country in 2006, which was later renamed as MGNREGA prefixing Mahatma Gandhi's name to it, which banned machines and contractors, both anathema to Gandhi, in the interest of workers.
The basic argument of this scheme, conceptualised by famous Belgian origin Indian economist Jean Dreze, was that if providing employment to masses was the objective then machines would have to be kept out of the work to be offered under MGNREGA.
---
*Magsaysay award winning social activist and academic. Contact: ashaashram@yahoo.com

Comments

TRENDING

From Kerala to Bangladesh: Lynching highlights deep social faultlines

By A Representative   The recent incidents of mob lynching—one in Bangladesh involving a Hindu citizen and another in Kerala where a man was killed after being mistaken for a “Bangladeshi”—have sparked outrage and calls for accountability.  

What Sister Nivedita understood about India that we have forgotten

By Harasankar Adhikari   In the idea of a “Vikshit Bharat,” many real problems—hunger, poverty, ill health, unemployment, and joblessness—are increasingly overshadowed by the religious contest between Hindu and Muslim fundamentalisms. This contest is often sponsored and patronised by political parties across the spectrum, whether openly Hindutva-oriented, Islamist, partisan, or self-proclaimed secular.

Aravalli at the crossroads: Environment, democracy, and the crisis of justice

By  Rajendra Singh*  The functioning of the Ministry of Environment, Forests and Climate Change has undergone a troubling shift. Once mandated to safeguard forests and ecosystems, the Ministry now appears increasingly aligned with industrial interests. Its recent affidavit before the Supreme Court makes this drift unmistakably clear. An institution ostensibly created to protect the environment now seems to have strayed from that very purpose.

Safety, pay and job security drive Urban Company gig workers’ protest in Gurugram

By A Representative   Gig and platform service workers associated with Urban Company have stepped up their protest against what they describe as exploitative and unsafe working conditions, submitting a detailed Memorandum of Demands at the company’s Udyog Vihar office in Gurugram. The action is being seen as part of a wider and growing wave of dissatisfaction among gig workers across India, many of whom have resorted to demonstrations, app log-outs and strikes in recent months to press for fair pay, job security and basic labour protections.

India’s universities lag global standards, pushing students overseas: NITI Aayog study

By Rajiv Shah   A new Government of India study, Internationalisation of Higher Education in India: Prospects, Potential, and Policy Recommendations , prepared by NITI Aayog , regrets that India’s lag in this sector is the direct result of “several systemic challenges such as inadequate infrastructure to provide quality education and deliver world-class research, weak industry–academia collaboration, and outdated curricula.”

The rise of the civilizational state: Prof. Pratap Bhanu Mehta warns of new authoritarianism

By A Representative   Noted political theorist and public intellectual Professor Pratap Bhanu Mehta delivered a poignant reflection on the changing nature of the Indian state today, warning that the rise of a "civilizational state" poses a significant threat to the foundations of modern democracy and individual freedom. Delivering the Achyut Yagnik Memorial Lecture titled "The Idea of Civilization: Poison or Cure?" at the Ahmedabad Management Association, Mehta argued that India is currently witnessing a self-conscious political project that seeks to redefine the state not as a product of a modern constitution, but as an instrument of an ancient, authentic civilization.

Why experts say replacing MGNREGA could undo two decades of rural empowerment

By A Representative   A group of scientists, academics, civil society organisations and field practitioners from India and abroad has issued an open letter urging the Union government to reconsider the repeal of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) and to withdraw the newly enacted Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025. The letter, dated December 27, 2025, comes days after the VB–G RAM G Bill was introduced in the Lok Sabha on December 16 and subsequently approved by both Houses of Parliament, formally replacing the two-decade-old employment guarantee law.

Gig workers’ strike halts platforms, union submits demands to Labour Ministry

By A Representative   India’s gig economy witnessed an partial disruption on December 31, 2025, as a large number of delivery workers, app-based service providers, and freelancers across the country participated in a nationwide strike called by the Gig & Platform Service Workers Union (GIPSWU). The strike, which followed days of coordinated protests, shut down major platforms including Zomato , Swiggy , Blinkit , Zepto , Flipkart , and BigBasket in several areas.

Bangladesh in turmoil: Rising insecurity, sectarian forces gain ground

By Bharat Dogra   Many who initially welcomed the ouster of Prime Minister Sheikh Hasina are now reconsidering their stance. The reasons are stark. Law and order has deteriorated sharply, leaving large sections of the population—particularly political opponents—deeply vulnerable. Minorities report growing insecurity, with disturbing incidents of targeted violence. Inter-faith harmony is under unprecedented strain, while prospects for fair elections are fading as major political parties, including those with strong minority support, face exclusion and obstruction.