It is perhaps necessary to restate and clarify what we mean by self-reliance and what steps are necessary to achieve it. The commitment of the Congress Party to promote economic emancipation of the large numbers of less privileged people in our country has been steadily strengthened over the years. The abolition of poverty and a more equitable dispersal of economic power and wealth continue to be among our prime goals. It is in this context that one should understand the objective, meaning and implications of self-reliance.
The objective of self-reliance is to remove dependence on external sources of economic assistance as a crucial determinant of our economic growth and planning. This would not, however, mean that we would shut ourselves away from the rest of the world in terms of knowledge, technology, trade and commerce or even borrowing on suitable terms. It would mean essentially that we shall deal with other countries as equals and be free to pursue our own independent policies for promoting peace and stability in the world without being influenced by other countries on the basis of an unequal economic relationship.
The meaning of self-reliance in strictly economic terms is that the resources required for investment in the economy and the technical skills required for rapid growth in various fields are generated within the country. The external resources required for meeting our import needs for investment in and maintenance of the economy should be provided by our own export earnings and not by grants or loans given by outside agencies. What self-reliance does not mean is a reconciliation to low levels of growth and continuing poverty for the mere satisfaction of not accepting external assistance. Growth, social justice and self-reliance have all to go together. That is why complete independence from external borrowing cannot be achieved with immediate eflect. Where assistance is available on honourable terms without any political strings and without onerous or unequal repayment terms, we will use it for some time; but even here, we shall have to be extremely selective and not too ready to assume a need for imports or borrowing just because someone is anxious to lend.