The idea of ‘aatmanirbharta’ (self-reliance) was envisioned in India’s core economic planning mission at its independence. Jawaharlal Nehru, along with PC Mahalanobis, who was instrumental in formulating India’s strategy for industrialisation in the Second Five Year Plan (1956-61), was keen on building an India that, from its infrastructural needs to consumer goods, would be self-reliant and self-sufficient to meet the needs of the society, particularly the poor.
Nehru-Mahalabonis’ vision, though, had limited success, if one looks at the nature of trade relationships India had during the 1950s or 1960s, or even by assessing the flow of foreign capital in and out of India.
The high degree of economic pessimism largely stemmed from a colonial hangover in the economic thinking of the ruling establishment – it sought policy consensus from both the political left and the right, leaving India’s trade and industrial policy only in principle pro-aatmanirbhar, while being pro-protectionist. The ‘License Raj’ made things worse over the next few decades.