The forgotten chemist

Many believe that "Make in India" is a new concept. But in reality, its roots go back to the Swadeshi Movement during the colonial era.

- DR SCION SARMA

The difference is that indigenous production against imperial interests was thoroughly discouraged. Later, in the 1970s, a similar vision of Make in India was reinforced through import substitution policies. This policy directive aimed to reduce dependence on foreign goods and strengthen domestic industries. The initiative was, however, without a catchy slogan. Behind the import substitution policy, the most potent driving force was the acute foreign exchange shortage. With limited reserves, India had little choice but to reduce dependence on imports and push for domestic production, even if it meant operating within a highly controlled and bureaucratic framework.

Those were different times, marked by the rigid grip of the "Licence Raj" and stringent price controls. The economy's commanding heights belonged to the government, with heavy industries under state ownership. For private enterprises, every installation of plant and machinery had to adhere strictly to the terms of their industrial license. Adding to this restrictive environment was the Monopolies and Restrictive Trade Practices (MRTP) Act of 1969, a robust regulatory force designed to prevent economic concentration and curb monopolistic, restrictive, and unfair trade practices.

While the objective of the MRTP was to ensure that manufacturers and traders did not get together and unduly increase prices monopolistically, the bureaucracy made it so stringent that large industries hesitated to document the proceedings of their collective discussions on solutions to their challenges. The minutes of the talks had to be drafted strategically. Thus, introduced to ensure fair competition, the MRTP soon became a tool to discourage large-scale investments and technological advancements by companies, reinforcing inefficiencies in the industrial sector. The act also limited foreign investment, as multinational corporations were subjected to stringent controls.