A Call for Localization and Ethical Capitalism: Insights from Finance Minister Nirmala Sitharaman

Finance Minister Nirmala Sitharaman, speaking at the IICA North East Conclave in Shillong, emphasized the need for globalization tailored to local needs and capitalism driven by ethical principles. Highlighting gaps in logistics, she called for improved infrastructure to boost the economic potential of India’s north-east. Sitharaman praised the region’s entrepreneurial spirit, noting 2,300 startups, and stressed the importance of institutions like IIM Shillong and IICA in fostering collaboration. She expressed optimism about the region’s future with robust policy and institutional support.

In a thought-provoking address at the Indian Institute of Corporate Affairs (IICA) North East Conclave held in Shillong, Meghalaya, Finance Minister Nirmala Sitharaman emphasized the importance of tailoring globalization to local needs and infusing capitalism with a sense of humanism. Her speech highlighted the necessity for businesses to adopt practices rooted in accountability and ethical principles, particularly in the context of India’s north-eastern region.

A Vision for Responsible Globalization

Sitharaman asserted that globalization, while inevitable, must not overwhelm local communities or economies. “We don’t need globalism which is going to sweep us out. What we need now here is to embed your business with more accountable practices,” she remarked. She emphasized that ethical principles, such as respect for kinship and community—values deeply ingrained in the north-eastern way of life—should guide business practices. These values, she noted, align closely with the ethos of stakeholder capitalism, which prioritizes the well-being of all stakeholders over mere profit-making.

Infrastructure: The Key to Economic Growth

The finance minister also underscored the need for enhanced infrastructure to better connect the north-east region with the rest of the country. She pointed out gaps in logistics, particularly in the transportation of goods. “There is a lot of work yet to happen,” she expressed, drawing attention to the logistical inefficiencies that hinder the region’s economic potential. Highlighting an example, she stated, “There’s no way in which by now, pineapples have to travel by road all the way to Mumbai.” Sitharaman called for the development of airlifting and warehousing facilities to ensure faster and more efficient movement of goods.

Empowering Institutions and Startups

The IICA, a think tank established under the Ministry of Corporate Affairs in 2006, has recently expanded its presence with a new campus in Shillong. This move, according to Sitharaman, holds great promise for fostering collaboration and addressing compliance-related challenges in the region. She also commended the north-east's entrepreneurial spirit, noting that there are 2,300 DPIIT-recognized startups in the region, with 69 based in Meghalaya alone.

Institutions like IIM Shillong and the newly established IICA campus, she said, play a critical role in bringing professionals together, facilitating knowledge-sharing, and driving policy dialogue. “It is important that institutions like IIM Shillong help in cross-pollination, get all the professionals together, meet up every now and then. And now that IICA is here, they should become the agents of bringing people together,” Sitharaman remarked.

A Bright Future for North-East Entrepreneurship

Sitharaman expressed optimism about the entrepreneurial potential of the region’s youth, praising their adaptability to global demands. She asserted that with the right policy support and institutional backing, the region could become a hub for innovation and enterprise. The establishment of the IICA campus in Shillong, she added, is a step in the right direction for nurturing this potential.

The finance minister’s address served as a strong reminder of the need for a balanced approach to globalization—one that respects local values while embracing global opportunities. By advocating for ethical capitalism, improved infrastructure, and robust institutional support, Sitharaman outlined a vision for sustainable growth in the north-east. Her call to action resonates not just with policymakers and entrepreneurs but with all stakeholders invested in the region's development.

A Call for Localization and Ethical Capitalism