Bengaluru, Nov 22 (UNI) Union Finance Minister Nirmala Sitharaman called for India to redefine its economic approach by adopting a model of 'responsible capitalism,' which balances growth with social responsibility and sustainability.
"Capitalism also has its limitations. We need to brand India as a responsible capitalist nation, one that prioritises the well-being of its people and institutions. Also, balances growth with social responsibility and sustainability," she said addressing the inaugural ceremony of the 8th India Ideas Conclave organised by India Foundation here on Friday.
Sitharaman outlined a vision for an India that prioritises not just expansion and profit, but also ethical practices that consider the well-being of people and the environment.
The Finance Minister emphasised that India's economic model should be rooted in the country's deep cultural values of sustainability, community well-being, and ethical governance. "Our economic system should not only focus on increasing GDP, but on increasing the quality of life for all, while maintaining balance with nature," she said.
Sitharaman highlighted that sustainability has always been a key part of India’s way of life, pointing to coastal communities who traditionally relied on local fish and crops, living in harmony with the environment. “Our coastal communities were nutritively rich because they relied on the fish they caught and the crops that grew around them,” she explained, stressing that their consumption was in harmony with the environment.
The Minister also clarified that this lifestyle was not born from poverty, but from cultural values: "We didn’t live like that because we were poor, but because it was our lifestyle." She argued that India’s economic growth should take inspiration from such past practices, where growth was aligned with the natural cycles of life, respecting sustainability, responsibility, and harmony.
A key concept in Sitharaman’s speech was purushartha, the four human goals of dharma (righteousness), artha (prosperity), kama (pleasure), and moksha (liberation). She explained that economic practices should be guided by dharma, ensuring that business and financial success are framed within ethical boundaries.
"The pursuit of artha and kama must always be guided by *dharma*," she said, warning that without ethical guidelines, economic activities can lead to greed and exploitation, depleting resources and damaging the environment.
Sitharaman also referred to the concept of moksha, the realization that one is already divine. This, she argued, leads to a holistic view of life, where every person and resource is seen as interconnected and worthy of respect. She stressed that this outlook would naturally result in capitalism that uses resources responsibly.
The Finance Minister called for a shift in economic models that currently prioritise short-term profits at the cost of long-term sustainability. “The traditional approach is linear—more profit, more growth, more resources. But life doesn’t follow a linear path. It’s cyclical, with ups and downs,” she said. She advocated for an economic system rooted in sustainability, where growth is balanced with environmental and social concerns.
Drawing on India’s traditional practices of recycling and reusing, Sitharaman suggested that India’s future economic strategy could lead the world in responsible growth. "India has long practised sustainability, not because of poverty, but because it was our responsibility to use resources as per our need, not our greed," she said.
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