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26 Jan 2026·Source: The Indian Express
3 min
EconomyPolity & GovernanceNEWS

President Murmu Emphasizes Self-Reliance Amid Global Tariff Challenges

President Murmu highlights India's economic growth and self-reliance on Republic Day.

President Murmu Emphasizes Self-Reliance Amid Global Tariff Challenges

Photo by Jon Tyson

On the eve of Republic Day, President Droupadi Murmu addressed the nation, emphasizing India's strong economic growth and its pursuit of self-reliance amidst global economic uncertainties and tariff wars. She highlighted India as the world's fastest-growing major economy, aiming to become the third-largest globally. Her address comes at a time when India is seeking to expand trade ties, despite facing potential tariffs and sanctions from the US.

Key Facts

1.

India: World's fastest-growing major economy

2.

Goal: Become world's third-largest economy

3.

Focus: Self-reliance amid global uncertainties

UPSC Exam Angles

1.

GS Paper 3: Indian Economy - Issues relating to planning, mobilization of resources, growth, development and employment.

2.

GS Paper 2: International Relations - Bilateral, regional and global groupings and agreements involving India and/or affecting India's interests.

3.

Potential question types: Statement-based MCQs on Atmanirbhar Bharat, FTAs, and global trade dynamics; Analytical questions on the impact of tariff wars on India's economy.

Visual Insights

Key Economic Indicators Highlighted by President Murmu (2026)

Dashboard highlighting India's economic growth and global standing as emphasized in the President's Republic Day address.

GDP Growth Rate (2025-26)
7.6%

India remains the fastest-growing major economy, crucial for achieving development goals.

India's Rank in Global GDP (Nominal)
5th

India aims to become the 3rd largest economy, indicating its growing economic influence.

Merchandise Exports (2025-26)
$450 Billion (Estimate)

Boosting exports is vital for self-reliance and reducing trade deficit.

More Information

Background

The pursuit of self-reliance in India has deep historical roots, tracing back to the Swadeshi movement during the British colonial era. Mahatma Gandhi championed the idea of 'Swadeshi,' promoting the use of locally produced goods and services to reduce dependence on foreign imports. This concept was further integrated into India's economic planning after independence.

The initial Five-Year Plans emphasized import substitution and the development of indigenous industries. However, the focus shifted towards liberalization and globalization in the 1990s, leading to increased integration with the global economy. Despite this shift, the goal of self-reliance has remained a key objective, particularly in strategic sectors like defense and technology.

The recent emphasis on 'Atmanirbhar Bharat' is a renewed effort to strengthen domestic capabilities and reduce reliance on imports, especially in critical areas.

Latest Developments

In recent years, India has witnessed a surge in protectionist measures globally, including tariff wars and trade disputes. This has prompted India to re-evaluate its trade strategies and focus on strengthening its domestic manufacturing base. The 'Atmanirbhar Bharat' initiative, launched in 2020, aims to promote domestic production, reduce import dependence, and boost exports.

The Production Linked Incentive (PLI) scheme has been introduced to incentivize domestic manufacturing in key sectors. Furthermore, India is actively pursuing free trade agreements (FTAs) with various countries and regions to diversify its export markets and reduce its vulnerability to protectionist measures. The ongoing negotiations with the UK and the EU for FTAs are significant steps in this direction.

The future outlook involves a greater emphasis on innovation, technology adoption, and skill development to enhance India's competitiveness in the global market.

Practice Questions (MCQs)

1. Consider the following statements regarding the 'Atmanirbhar Bharat' initiative: 1. It primarily focuses on promoting import substitution across all sectors of the economy. 2. It aims to enhance domestic production and reduce dependence on imports, particularly in strategic sectors. 3. The initiative was launched in response to increasing global protectionism and supply chain disruptions. Which of the statements given above is/are correct?

  • A.1 and 2 only
  • B.2 and 3 only
  • C.1 and 3 only
  • D.1, 2 and 3
Show Answer

Answer: B

Statement 1 is INCORRECT: While import substitution is a component, Atmanirbhar Bharat also focuses on boosting exports and enhancing overall competitiveness. Statement 2 is CORRECT: The initiative aims to enhance domestic production and reduce import dependence, especially in strategic sectors like defense, pharmaceuticals, and electronics. Statement 3 is CORRECT: The initiative was launched in 2020 in response to increasing global protectionism, trade wars, and supply chain disruptions caused by the COVID-19 pandemic.

2. Which of the following best describes the primary objective of the Production Linked Incentive (PLI) scheme in India?

  • A.To provide subsidies to farmers for increasing agricultural output
  • B.To incentivize domestic manufacturing and attract investments in key sectors
  • C.To promote exports by providing tax benefits to exporters
  • D.To reduce the fiscal deficit by increasing government revenue
Show Answer

Answer: B

The Production Linked Incentive (PLI) scheme aims to incentivize domestic manufacturing by providing financial incentives to companies for increasing their production and attracting investments in key sectors such as electronics, pharmaceuticals, and automobiles. It is designed to boost domestic manufacturing capabilities and reduce import dependence.

3. Assertion (A): India is actively pursuing Free Trade Agreements (FTAs) with various countries and regions. Reason (R): FTAs can help India diversify its export markets and reduce its vulnerability to protectionist measures. In the context of the above statements, which of the following is correct?

  • A.Both A and R are true, and R is the correct explanation of A
  • B.Both A and R are true, but R is NOT the correct explanation of A
  • C.A is true, but R is false
  • D.A is false, but R is true
Show Answer

Answer: A

Assertion (A) is true: India is actively engaged in negotiating and signing FTAs with various countries and regions, including the UK and the EU. Reason (R) is true and the correct explanation of A: FTAs provide preferential access to markets, reduce tariffs, and promote trade, thereby helping India diversify its export markets and reduce its vulnerability to protectionist measures imposed by other countries.

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