In an exclusive conversation with the Editor of Organiser Weekly, Prafulla Ketkar, on the platform of “Arthayam: A Conclave For Dharmic Model of Development”, jointly organised with the National Stock Exchange (NSE) Mumbai, on September 19, the Former Union Minister Milind Deora, member of Parliament’s Standing Committee on Finance, spoke about Bharat’s growth in the next decade, tariffs as a blessing in disguise, Atmanirbharta driven by innovation, and a foreign policy calibrated for a multipolar world. Excerpts:
How do you see Bharat positioning itself in today’s world order, and how do you think this tariff war will play out?
As a lifelong student of politics, when I look at today’s global debate of socialism vs. capitalism, for example, and at the US, where there’s a big upsurge of socialism, I feel Deendayal ji’s uniquely Indic, dharmic vision is essential.
Post Operation Sindoor, my delegation visited the Americas — South America, Central America, and the United States. What struck me, in Latin America, or places I have visited before, much like in parts of Africa, is this: in the Global South, China has moved very aggressively over 30 years; in Southeast and East Asia, China, Bharat, and the US all have roles. But in Latin America, every single country told us, “We are tired of the American model. We are tired of the Chinese model. We want India to lead and give us a third alternative.” That, to me, is at the core of what we commemorate today: a unique economic, social, political model that has transcended history, something Bharat can offer the world.
The US tariffs, especially “25 plus 25 per cent,” which is really a penalty, is a blessing in disguise. I mean, in Bharat, we often reform only when in crisis. Even in 1991, our big turning point was not proactive; our hands were tied. Now when key employment-generating sectors, textiles, seafood exports, gems and jewellery, face 25+25 per cent tariffs, it forces us to accelerate Atmanirbharta (self-reliance).
How do you see Bharat balancing social security with fiscal prudence and debt-to-GDP? Can younger parliamentarians build consensus on strengthening social structures and creating wealth, rather than just announcing packages?
It is a loaded political question but as a young person, I am concerned. America’s debt-to-GDP is approximately 130 per cent (federal plus states). Bharat’s combined central and state governments are approximately 80 per cent and rising. That is one area of concern, just as you flagged.
But the Government side also has to look at revenue. GST has been an excellent reform to raise revenue, bringing states together into a unified market. On expenditure, there are two buckets: revenue expenditure and capital expenditure. The mix matters.
On revenue, GST helps investment and manufacturing, which aligns with Atmanirbharta. But GST also makes some states feel that powers have shifted to the Centre. So governments must balance federalism: if states cannot levy certain taxes, they must be given flexibility, say, to attract investment via schemes. That balancing act is ongoing.
One area you have advocated is reducing import dependency, especially for future needs like rare earths for solar and wind. Where can we create real self-sufficiency now?
Let me draw an analogy from defence. On the Parliamentary Defence Committee, we pushed offsets: if we import equipment (earlier mostly from Russia; now also Israel, the US, France), at least 26 per cent must be made in Bharat. That built domestic industry and tech. Today, I am proud we are moving from net importer to net exporter of defence. That’s a big shift.
Similarly, in the green transition: whether we like it or not, it is essential and it creates jobs. More jobs are coming in solar and EVs than in oil or ICE vehicles. The government recently brought a strong mining regulation; I spoke on it last month. We have opened the sector so Indian companies (public and private) can mine rare earths domestically and invest in overseas mines to shore up supply chains.
But here’s the key point I raised: recycling. Globally, over the next five years, wind turbine blades and solar panels will start getting decommissioned. Recycling them can yield $5 billion a year in rare earths, yet right now, much of that material is just dumped or buried.
How do you reconcile Atmanirbharta in defence with US accusations that Bharat “funds” the Ukraine war by buying Russian oil?
Government of India’s stance in recent months has been remarkable. We didn’t just stand up to tariffs; we stood up to dadagiri. I credit the Prime Minister for holding the line despite potential economic harm, on principle: protecting homegrown industry and MSMEs. Hence, the partial climb-down we’re seeing.
Bharat must think in 10–15-year horizons: strengthen innovation and the economy, and build alliances with countries close to us in values. The world is multipolar; the unipolar moment is over.
Now, the trade gap: with Latin America, Bharat’s trade is only $45 billion a year; China’s is $550 billion. We’re at one-twelfth. In Central Asia, China trades $100 billion annually; Bharat’s trade is approximately $2 billion — just 2 per cent of that. We must expand.
Domestically, Atmanirbharta means production at home, yes, but also Swadeshi consumption and changing habits and preferences. In my Committee on Subordinate Legislation, we’re reviewing India’s food safety standards. Why mimic the West? The US faces an obesity crisis. Do we want that burden on Indian taxpayers next? We have yogic, dharmic, sattvic food traditions. Let’s adopt them at home and export that culture abroad.
