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    Home » Why is tacit knowledge important for civilizational economies like India?
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    Why is tacit knowledge important for civilizational economies like India?

    morshediBy morshediJune 29, 2025No Comments6 Mins Read
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    Why is tacit knowledge important for civilizational economies like India?
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    Tacit data sustains India’s casual economic system, preserving historic knowledge very important for cultural id and financial resilience.

    The current Prada’s Spring/Summer time 2026 present at Milan featured footwear strikingly much like India’s Kolhapuri sandals triggering a web-based backlash about designers not giving due credit to the design’s origin. The social media backlash was solely what it was meant to be–an emotional outpouring–we will’t count on it to assist us perceive why India retains inspiring the most effective inventive and probably the most organized business overseas however struggles to uplift its context again house.

    A non-confrontational and solution-oriented evaluation of this drawback may start by correcting a misplaced understanding about India’s casual economic system that’s predominantly unorganized–this unorganized economic system will also be rightly understood as our civilization’s economic system surviving and resilient due to its tacit data techniques.
    Information is specific or it’s tacit (अनकही या निहित). Between the specific and the tacit all spheres of our data techniques will be divided, permeating our historical past, economic system, politics and probably all the pieces. That is simple in nations like India with intensive civilizational heritage as issues in such societies will be very previous, seen and but inexpressible or tacit.

    Thus if an European or American dressmaker and even an Indian from one of many Nationwide Institutes of design (these societies and establishments symbolize specific data primarily based ecosystems), loitering via ethnic bazaars of Indian vacationer cities, picks up an thought amply existent within the tacit data round, he can merely credit score it to his inspiration. Haowever his output, a product or a design will develop into the a part of his organized market with no credit score or returns to the supply of origin.
    The idea of tacit data will be even translated as what in our cultural context we name “samskara (संस्कार)” and it occurs inherently via residing in a life-setting. Anytime in historical past a sure system of literacy or data system ends, its specific data progressively and more and more turns into tacit.
    Readability on this home context is especially essential for our coverage makers as a result of it could actually assist us to grasp many historic features of our society’s existence which proceed to function and affect our up to date setting notably our casual, conventional financial techniques and markets.

    Context of Our Casual Economic system
    Over 85 p.c of the Indian labour or over 476 million individuals as of 2019-20 have been employed within the casual sector contributing nearly half of our GDP. Those that see formalization as the one option to financial improvement really feel pissed off juggling these statistics–India’s formal economic system is rising and is seen in our financial rise however our casual economic system has continued to persist all these many years sustaining its house, power and measurement.
    This casual economic system is characterised by time-grown and time-tested tacit data techniques which have come from completely different intervals (some extraordinarily previous) and have endured regardless of many challenges and catastrophes. They’re existent in conventional markets by advantage of historical past and by advantage of being both transmitted in a lineage or being preserved locally.
    These tacit techniques which many occasions have been cultivated by time in particular cultural geographies are additionally amply seen in ethnic markets of ethnic tribes. On one hand these tacit data techniques are discovered to be essential for industrial innovation and creativity by cultural geographers like Meric Gertler, however they’re discovered to forestall the transformation of casual markets into formal techniques and there are analysis research on the Indian casual footwear business to show it.
    Formal or organized, regulated techniques name for specific or codified data techniques together with for functions of coverage making. Our coverage making for the casual sector is proscribed to social safety whereas formal techniques are extra regulated with diversified funding areas together with extra concentrate on their analysis and improvement in addition to the expansion of their human useful resource.

    Let’s juxtapose this notion with the Kolhapuri ethnic footwear business which its district administration identifies as small scale (MSE). It lists 15 cooperative societies of Kolhapuri chappals within the district using hundreds of people that manufacture the ethnic conventional product each for export in addition to the nationwide home market.
    India’s Sahkarita or cooperative mission for the casual markets is seen right here and so is the visibility of the idea of cultural geography within the localization of this business in Kolhapuri. And the actual fact stays that the Kolhapur footwear business is basically household primarily based enterprises using tacit data techniques.

    Tapping into Tacit Information
    The strategies and modes of preserving tacit conventional data aren’t specific like these maintained in formal economies via analysis and improvement. The truth is it largely goes unidentified, untapped and is quickly being misplaced with huge demographic shifts and migration whereas we nonetheless wrestle to grasp why our casual markets are averse to transformation.
    If we don’t discover a option to protect, evolve and discover inspiration within the tacit data techniques of our conventional markets and casual industries like Prada seemingly did, we’ll lose far more than what we achieve by formalization and its affluence. The truth is, since what we lose will itself be tacit–it’ll solely replicate in by no means earlier than heard issues and existential crises.
    Formalized markets will at all times be susceptible to bigger manipulation triggered by geo-political tendencies like the present commerce battle between US and China. In geo-political and political context, I are inclined to assume that large-scale transformation of casual economies isn’t attainable with out demeaning and damaging pure catastrophes, widespread civil unrest or authoritarian coverage reforms. In a approach India’s resilient casual sector proves the inherent worth system of Indian society.

    I consider, the elemental change wanted in India’s notion is in the best way it has tried to grasp its casual/unorganized sector extra as a legal responsibility than as a possibility. We have to assume recent and extra significantly about our id and existence as a civilizational economic system and the best way to faucet into its huge useful resource of tacit data.
    Now there are many alternatives and challenges for India right here however this text isn’t a single-stop resolution–that is one thing that’s going to occupy my thoughts for lengthy and I hope to search out some co-explorers on this journey who share this love and understanding about India. Let’s blaze a brand new path!

    * Venus Upadhayaya is a doctoral fellow learning numerous views to India’s unorganized financial sector. She’s additionally a senior journalist and a MOFA 2025 Taiwan Fellow.



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