The era of growing ‘globalization’, which has tended to reduce the earth to a ‘global village’, too has its distinct gainers and losers, its own peculiar characteristics of inequitable progress and exploitation, and it has significant social and ecological costs. As a reaction such adverse impacts of the on-going globalization process, a counter-emphasis has been developing for ‘localization’ in diverse forms in different parts of the world. Here, ‘localization’, essentially means an economy of neighborhood and self-reliance, particularly in respect of more basic needs, as a means to ensure freedom and to protect the rights and interests of local/ weaker sections and communities against exploitation by the globalizing forces, particularly the ‘free market’ economy. In the Indian context, the whole idea of ‘localization’ has been embodied in the comprehensive and well-known Gandhian concept of ‘Swadeshi’, which had been developing in India as a reaction to ‘global’ exploitation since the colonial rule itself. Local action is an effective approach to solve social and environmental problems too. This paper depicts the need of localization of Indian economy to make it efficient, competitive, and economically tenacious to grasp strategic economic advantages in the world.