For future of nation, stability of global order, India must focus on self-reliance

One can also cite the conviction in self-reliance that led to the establishment of a world-class steel plant at Jamshedpur in 1907 by Dorabji Tata. His father, Jamsetji Tata, had earlier proposed to raise the necessary capital for the establishment of the plant solely from the Indian public, a daring idea in the context of the nationalist struggle against colonial rule. Seen as being audacious then, Jamsetji’s faith in Indian enterprise proved prescient, leading to the establishment of the Tata Steel Company, funded entirely through Indian capital, demonstrating that self-reliance could be achieved in the most compelling circumstances if supported by vision, grit, and determination.

The call for self-reliance and Vikshit Bharat by 2047 should be thought of within this framework. However, it demands a fundamental shift in our approach to manufacturing and global competitiveness. It requires us to evolve beyond our strengths in IT and low-cost services to become high-end, quality-focused technology manufacturers with global market access, specifically in East Asia, Africa, and Eastern Europe. East Asia’s technology is experiencing some deceleration but is witnessing massive investments in infrastructure and data centres driven by artificial intelligence. Africa is likely to have 1.1 billion internet users in the next five years. That provides massive scope for smartphone-based, high-technology products. Countries like Poland, the Czech Republic, and Hungary in Eastern Europe are undergoing a shift towards high-tech, value-added manufacturing, presenting opportunities for advanced Indian products across sectors from automotive electronics to renewable energy systems. To effectively have engagements in these markets, we need to transition from the conventional model of cost-effective competitive manufacturing to focused precision engineering, advanced materials science, and innovative design capabilities.

An essential component of this strategy will be to expand the existing networks and ecosystem of Global Capability Centres (GCCs). The evolution of GCCs from basic back-end processing units to advanced centres of innovation, research, and development is remarkable and speaks to our current competencies and future capabilities. To complement and amplify the GCC ecosystem, India must accelerate the development of multiple financial and technology hubs like the Gujarat International Finance Tec-City (GIFT City). There should be a network of such spaces, each focusing on specific sectors like fintech in Bangalore, manufacturing in Chennai, pharmaceuticals in Hyderabad, and renewable energy in Gujarat. In becoming global centres of excellence, these spaces could also bridge regional imbalances while fostering brain gain and attracting international investments.

The effectiveness of GCCs and GIFT cities is dependent on quality human capital, highlighting the need for reforms in higher education. The National Education Policy (NEP) 2020 is a potential driver for transforming India’s higher education landscape. However, it’s marred by weak and myopic implementation mechanisms and strategies obsessed with quantifying knowledge. While NEP suggests fostering scientific and critical inquiry, the obsession with numbers has led to a focus on rankings and superficial metrics that bear little relation to real-world impact, rather than genuine research excellence that can be directly taken up by industry and markets for production and consumption.

For high-tech globally competitive manufacturing, advanced assembly lines, robust infrastructure, and financial ecosystems are needed. It requires significant resource allocation to technology-based quality control systems. Most importantly, it requires meaningful partnerships between university labs and manufacturing companies by the way of establishing innovation labs, incubation facilities, and study centres to help turn theoretical knowledge into real-world applications.

The historical trajectory of developed nations offers compelling lessons in this context. The distinctiveness of Oxford and Cambridge preceded the rise of the British Empire and the intellectual ferment in German universities in the 19th century served as a catalyst for its industrial and economic transformation. Historically, the establishment and functioning of world-class universities have been a prerequisite of national development. Attaining self-reliance therefore requires our universities to gear themselves towards becoming innovation hubs and propellers of national development.

At this critical juncture, with our demographic dividend at its peak and external pressures mounting, PM Modi’s call for self-reliance is indeed persuasive. The future of India, and indeed the stability of the global order, depends on the choices we make today. Let us wake up to this reality, the time for transformation is now.

Singh is a professor of Political Science at Hindu College, University of Delhi. Views are personal