'Stop Being Squeamish About Swadeshi': CEA Flags Supply, Rupee Risks

India must stop being "squeamish about swearing by Swadeshi," Chief Economic Advisor V. Anantha Nageswaran said after unveiling the 2026 Economic Survey, arguing that self-reliance is not optional but essential in a world heading toward a "systemic shock cascade."

He flagged early signs of a global resource squeeze. "There is going to be a resource crunch, which is reflected in the price of copper. And in the last one week, even crude oil prices have begun to form. So we need to create buffers, fertiliser, base metals, crude oil, pharmaceutical ingredients."

"Leverage AI, and therefore Swadeshi is a legitimate policy instrument in such a world. Countries have to take care of their priorities and therefore we should not be squeamish about swearing by Swadeshi in this kind of global environment."

"We need to have buffers because supply chains can be disrupted at any point in time.. And the other thing, apart from building up buffers, which we need to import in many cases, we also have to appreciate that as the economy grows, per capita income rises, imports will inevitably rise. This is a given."

Referencing China's path, he pointed to a chart that showed China's per capita income growth going from "nothing to $12,000" in the last 50 years or so, adding that the phase also so imports going. "We look at China as a major exporting power, that is true, but it also imports a lot, 3.3 billion, including services. So similarly, India going from $2,500 per capita to $20,000 per capita in the next 25 years will also see its imports rise."

"Therefore, it means we have to export or attract capital to pay for it. That's also inevitable. No matter how successful we are with indigenisation, this is something that economic history tells us is inevitable."

On the rupee: "If you look at the performance of currency since the millennium began, the Indian rupee actually has done quite well."

He said "manufacturing strength is a precondition for achieving currency stability and strength," and that "financial deepening is secondary or auxiliary to achieving cost of capital compared to manufacturing and export surplus."