Why Exporters Are Now Drawing Inspiration From The Swadeshi Movement

Over a hundred years ago, Indian freedom fighters launched the Swadeshi movement, as an anti-colonial agitation. The movement, built on self-sufficiency and fostering self reliance, was also a shot in the arm for indigenous industries in textiles and other sectors. Fast forward to 2025, 'look inward' once again appears to be the motto, but this time around for industries being forced to deal with the consequences of US tariffs.

Gems and jewellery is India's second-largest export to the United States — second only to electrical machinery and equipment. Of the nearly $10 billion in gems and jewellery exported to the United States, Rajesh Rokde, Chairman at the All India Gem and Jewellery Domestic Council, expects a hit to about $3-4 billion, with this now being diverted to either other export destinations or for domestic consumption.

Those exporters that were fully focused on the US will be hit, said Rokde. While they will take time to pivot, in case of the industry at large, India is a huge market by itself, said Rokde, adding that working in the Indian industry they can cover up for some losses. The council has actively been ramping up on shows and exhibitions in parts of the country to boost domestic sales ahead of Diwali in a bid to make up for the double whammy of slower sales at back home, while grappling with lower exports.

Immediate past chairman of the council Saiyam Mehra said that the industry, despite having seen a decrease of almost 25-30% on an annual basis in gold sales in volume terms, still expects a catch-up in the festive and wedding season. In value basis, he expects an increase at about 30% or so, he added.

People's trust in any commodity which increases in value increases, he said, adding that jewellers are hopeful of selling 18-20 tons of gold on Dhanteras day alone, and about 150 tons in the next three months which is approximately a third of the sales for the entire year.

Another industry that appears to be relying on a boost from domestic sales to offset American exports is apparel. The US makes up a third of all apparel exports, said Rahul Mehta, chief mentor at the Clothing Manufacturers Association of India. The thrust on diversifying exports might not necessarily work. It's not as simple, he says, adding that compliance in the US is not as strict, and consumers not as fashion conscious as those in Europe, he said, explaining that consumers in the United States are not as fashion conscious as those in countries like Europe.

Other newer markets, while taking time to develop, might also lack the deep pockets that Americans appear to have because of their debt fueled consumption habits. Some markets like Russia and the Middle East do offer potential over a longer term.

In the interim, the industry's best bet is India. India's markets are now better organised, with several large players, and more professionally run than previously, said Mehta. While Mehta rues that the higher GST slab on apparel costing Rs 2,500 or more might dampen spending, Kumar Rajagopalan, CEO at the Retailers Association of India, remains hopeful of a bumper festive season.

Deepa Kumar, Head of Asia-Pacific Country Risk and Co-Lead, India Research Chapter at S&P Global, also said that at a time when India has just seen reforms like the GST 2.0 and with chances of more fiscal support for some sectors on the table, it makes sense to turn inward.

"But, we don't know the answer as to what is the period of the ongoing global uncertainty," said Kumar. "Is it something they can wait out or can it be so prolonged that it makes sense to start looking closer to home?" she asked.

In the interim too, India and its partner countries are looking for deeper integration for Indian goods in the global markets, she said.