On June 7th 2005, renowned Indian economist and journalist Mr. S. Gurumurthy had a whirlwind visit to Boston on behalf of Dharma Foundation, USA, Boston Chapter.  Mr. S. Gurumurthy, is the founder and trustee of “Center for Policy Studies,” Chennai, India (http://www.cpsindia.org). He is also the all India co-convener of Swadeshi Jagaran Manch (http://www.swadeshi.org).  Mr. Gurumurthy was an economic advisor to the last NDA government in India.  A leading Chartered Accountant by profession, Mr. S. Gurumurthy is a consultant to several top business groups in India. He has been the chief advisor to Mr. Ramnath Goenka, founder of Indian Express group. He is also widely acclaimed for investigative journalism; he was instrumental in uncovering the ‘Bofors’ scam. This article summarizes a brief interview with Mr. Gurumurthy and his thought-provoking public address on the evening of June 7th, 2005 at Satsang Center, Woburn, MA. 

What is the purpose of your visit ?

I came purely to conceptualize the Dharma Foundation in the United States.  In fact, I didn’t accept any other invitation.  However I am looking forward to understand the Indian community.  It is my first visit after 9/11, so as a distant observer, I am looking forward to assess the changes in the U.S. and U.S. economy since 9/11.
 
Did you meet with any NRIs here?

So far, I met with several people within the NRI communities in LA, Chicago, and Boston.  Some of the people whom I met are well known beyond the Indian communities around the world.  I also met with leaders of Hindu organizations.  So far, my visit has been very educational and productive.

Knowing the economic changes and changes in Indo/US relations, how do you see outsourcing?

We continue to look these issues from our perspective and Indian interests.  Outsourcing is beneficial to India and it will be done.  It is done, as it is beneficial to outsourcers, too;  otherwise they won’t outsource.  In this economic model, India will be a great beneficiary.  Outsourcing will work differently in different economies.  For example, the prognosis is that outsourcing is not only beneficial but also inevitable in Europe due to shortage of labor across the board from high to low end.  America will not face such labor shortage and hence outsourcing won’t be physical compulsion but in that case it would be competitive compulsion.  That’s the way forces are emerging.

What about Swadeshi movement? 

As far as the idea of Swadeshi is concerned, we never meant it to be an idea to refuse the participation in global competition, but it calls preparation to participate in global competition.  For example, if Indian industry had not calibrated participation in global industry, there would not have been the Indian automobile industry today.  So the preparation for participation of Indian industries in global competition, as well as the nation’s for the same, is the idea of Swadeshi.  Most people forget that global market is not the competition between individual corporations but it is the competition between nations.  Globalization fortifies the idea of national economy.  So there is conceptual misunderstanding about Swadeshi.  When you are talking about American or British economies it is their respective Swadeshi’s, so then what is wrong when we speak about Indian interest; I don’t understand how it becomes a narrow minded concept?  I believe it happens due to inferiority complex.  It is important to have the education and clarity in thoughts among the Indian population about the national interests.  For instance, take an example of the accounting profession.  Competition is allowed in India but Indian professionals are not allowed to compete in this country.  If we speak about this issue, some elite economists call us the opponents of global economy and liberalization.  And frankly, that is just not true.  Hence we need to have clear understanding of these issues. 
In the same context, my next question addresses Foreign Direct Investment or FDI.  Interestingly, recently on National Public Radio, President Clinton was expressing serious concern about US economy as it depends heavily on foreign investment, on the same issue Federal Reserved Chairman Alan Greenspan was commenting that there is a moderate impact (as against serious) of such investment on the US economy.  Knowing your concerns about FDI, how do you view the increased foreign reserve and changes since 1991?

Swadeshi’s view on FDI is misinterpreted.  We are not against FDI, but we consider that our nation cannot be built on foreign funding; we need it as supplement.  Especially in case of India, it is a well-known fact that we are a saving-economy, unlike the Anglo-Saxon countries that need FDI to build economy and subsequently for consumption.  Since 1991 the annual FDI in India has been less than two to two-and-half percent of the total capital invested in India.  If India is to emerge as, or at least perceived to emerge as, a major economic factor in the world, FDI has played no role.  But unfortunately in the debate of India, FDI was projected so much beyond its relevance that the mindset of Indians became foreign dependent.  In reality, local capital of India has constituted ninety-seven and half percent of the investment.  But the disproportionate importance was given to FDI, which created a perception that only foreign capital could build India.  That is not good for building national mind, pride or economy.  That is why we asked to allow FDI only where it is relevant.   We  already have huge domestic savings thus it is difficult to further absorb FDI.  Whereas the case is reverse in the United States which absorbs seventy percent of the global savings.  So, if there are no savers, there won’t be investment and no further spending in the US.  This is the first point.

Our second point is that we need FDI not for mergers and acquisition (M&A) and to restructure our industries.  Local investment is adequate for that.  However, seventy percent of foreign capital in India this period came only for M&A. 

Can you comment on the events leading to changes in the Indo-US relationship?

See, the non-Indian perspective is that India is on the rise.  It is not just perspective but it is a study and prognosis that India is on the rise.  In fact global planning is moving on this thesis, that by any permutations and combinations, India is emerging as a major factor.  Many people are writing that India is major emerging economy.  These articles are not written by Indians or solicited by public relations campaign by the government of India.  These are very real trends written by experts and perceptive minds.  India is not rising as an economic power, but also as political, military, technology, and HRD power.  But behind all this it has a civilizational power, which is giving India a cutting edge in competence. 

However even the most perceptive observers do not so perceive it as they don’t have the understanding of India.  They just observe the output of India but not the true strength behind it.  It is the collective responsibility of NRI community to present this power and the message.  Individual excellence is possible individually, but as a community and civilization to give such message, first it is required to internalize the pride and eliminate the inferiority complex.  It is not possible without being firm and displaying leadership.  And this is where the goal of Dharma foundation can play a key role.

Finally, based on our discussion and knowing of the emerging India, what makes you excited in the positive sense and what concerns you?

There is no hope without fear and there is no fear without hope.  The world is always run by conflicting poles, as there is no happiness without sorrow and vice versa.  But at present Indian hopes are more than apprehensions; it was reverse fifteen or twenty years ago.  That’s all I can say.

Summary of the speech given by Mr. S. Gurumurthy at Satsang Center Woburn, MA in front of NRI community while commencing Dharma Foundation, Boston Chapter. 

In elaborating his thoughts and goals of Dharma Foundation, he acknowledged the NRI contribution in the development of US as an economic power at home, as well as in the world, but insisted that rather than just limiting the role as “wealth creator” for the US economy, NRI community needs to influence the US with its age old cultural and cvilizational assets.   The western model emphasizes the spending economic model with exclusive individualistic life style.  The collapse of communism and the economic success of ‘90s made the entire world follow the economic model of the West, especially that of the United States, as the only necessary lifestyle for the individual and the nation.  However Gurumurthy emphasized that economic and military power, while necessary, do not make the nation a complete power; for that a nation needs the power of civilization. 

Western/US economic model stresses the need for privatization and minimization of  government interference to increase economic efficiency, yet the same people forget that the biggest public sector investment by any world government standard is for the Social Security in the U.S. U.S. Social Security is beyond anyone’s imagination about to be a bankrupt system.  Still there is opposition to privatization.  The obvious reason for such opposition lies in the lack of consideration of social security for elder population as one’s own family duty.  Despite the solid economic progress of India, well acclaimed by the non-Indian economists and economic institutions, it is a fact that average savings have increased from 26% in 1995 to 28% in 2005. 

India has a civlizational model where we are all-round progressing beyond economic and military strength.  We follow principles that are not properties of the state but are privatized in individual and family values.  It is the duty of NRIs to remember our values in mind and in practice, and spread them beyond our community.  It is the need of the hour for tomorrow’s true global village.  However, we cannot achieve success in this mission without achieving internal spirituality and confidence about our culture and ourselves.  Dharma foundation has taken this challenge. 

Finally, Mr. S gurumurthy requested the NRI community to take action by telling a thought-provoking story: Sri Aurobindo used to always look at a mystic called Kullachamy (Subramanya Bharati has written a poem about him). He used to behave like a madman, wandering here and there, throwing stones ... One, day he came near Sri Aurobindo, lifted his cup of tea and emptied it in front of him. Then he showed the empty cup to him, placed it on the table and went away. Sri Aurobindo"s friends were angry and wanted to chase him, Sri Aurobindo stopped them and said, "This is the kind of instruction I had been expecting from him. He wants me to empty my mind and start thinking afresh."

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