Gandhian economics is a school of economic thought based on the spiritual and socio-economic principles expounded by Indian leader Mahatma Gandhi. It is largely characterised by rejection of the concept of the human being as a rational actor always seeking to maximize material self-interest that underlies classical economic thinking. Where Western economic systems were (and are) based on what he called the “multiplication of wants,” Gandhi felt that this was both unsustainable and devastating to the human spirit. His model, by contrast, aimed at the fulfillment of needs – including the need for meaning and community. As a school of economics the resulting model contained elements of protectionism, nationalism, adherence to the principles and objectives of nonviolence and a rejection of class war in favor of socio-economic harmony. Gandhi's economic ideas also aim to promote spiritual development and harmony with a rejection of materialism. The term "Gandhian economics" was coined by J. C. Kumarappa, a close supporter of Gandhi.
Gandhi's economic ideas
Gandhi's thinking on what we would consider socia-secular issues (he himself saw little distinction between the sacred and its expression in the social world) was influenced by John Ruskin and the American writer Henry David Thoreau. Throughout his life, Gandhi sought to develop ways to fight India's extreme poverty, backwardness, and socio-economic challenges as a part of his wider involvement in the Indian independence movement. Gandhi's championing of Swadeshi and non-cooperation were centred on the principles of economic self-sufficiency. Gandhi sought to target European-made clothing and other products as not only a symbol of British colonialism but also the source of mass unemployment and poverty, as European industrial goods had left many millions of India's workers, craftsmen and women without a livelihood.
By championing homespun khadi clothing and Indian-made goods, Gandhi sought to incorporate peaceful civil resistance as a means of promoting national self-sufficiency. Gandhi led farmers of Champaran and Kheda in a satyagraha (civil disobedience and tax resistance) against the mill owners and landlords supported by the British government in an effort to end oppressive taxation and other policies that forced the farmers and workers into poverty and defend their economic rights. A major part of this rebellion was a commitment from the farmers to end caste discrimination and oppressive social practices against women while launching a co-operative effort to promote education, health care and self-sufficiency by producing their own clothes and food.
Gandhi and his followers also founded numerous ashrams in India (Gandhi had pioneered the ashram settlement in South Africa). The concept of an ashram has been compared with the commune, where its inhabitants would seek to produce their own food, clothing and means of living, while promoting a lifestyle of self-sufficiency, personal and spiritual development and working for wider social development. The ashrams included small farms and houses constructed by the inhabitants themselves. All inhabitants were expected to help in any task necessary, promoting the values of equality. Gandhi also espoused the notion of "trusteeship," which centred on denying material pursuits and coveting of wealth, with practitioners acting as "trustees" of other individuals and the community in their management of economic resources and property.
Contrary to many Indian socialists and communists, Gandhi was averse to all notions of class warfare and concepts of class-based revolution, which he saw as causes of social violence and disharmony. Gandhi's concept of egalitarianism was centred on the preservation of human dignity rather than material development. Some of Gandhi's closest supporters and admirers included industrialists such as Ghanshyamdas Birla, Ambalal Sarabhai, Jamnalal Bajaj and J. R. D. Tata, who adopted several of Gandhi's progressive ideas in managing labour relations while also personally participating in Gandhi's ashrams and socio-political work.