Independence is a truly empowering force: not only does independence drive the fulfilment of one’s true potential, but it also enables one to aspire for more. Akin to the incredible power of independence for individuals, the independence of a nation is a force to be reckoned with.
Having celebrated 75 glorious years of independence last year, India has checked off many boxes on the path towards growth and progress.
What’s next is to the road to really shine by being self-reliant to support the domestic demands as well as become a global supplier. Our country’s economic independence has been earmarked as a key pillar by the launch of Atmanirbhar Bharat initiative in May 2020. In order for India’s economy to be highly self-reliant, domestic production across sectors needs to be scaled up; not only is this critical to reducing our dependence on imports, but it is also pivotal to our capability to tackle burgeoning issues such as unemployment.
Key Sectors in the Path towards Atmanirbhar BharatÂ
Whilst some sectors of India’s economy are fairly self-reliant and largely immune to the impact of global events, some sectors are not. The defence sector, which serves as the bedrock of the protection of our sovereignty, is, in particular, still dependent upon imported equipment and technology alike.Â
Another key sector where the significance of self-reliance is being increasingly emphasised is the critical infrastructure sector. From transport, ranging from roadways to railways and intra-city metro train networks to infrastructure for communication and connectivity, India must direct policy initiatives toward strengthening domestic capacity. Both defence and critical infrastructure are sectors taking centre stage in the wider goal of self-reliance and nation building.Â
Self-reliance in the Defence SectorÂ
While on one hand, self-sufficiency in the manufacture of defence equipment will bestow on India considerable sovereign strength, on the other hand, it can usher in a new dawn for the domestic defence equipment industry vis-a-vis opportunities to scale up output.Â
On an average Rs. 40,000 crores of defence machinery and systems are imported every year. With the importance of self-reliance in defence as one of its focal points, The Union Budget of 2022-23 earmarked 70% of the total defence outlay for domestic production. Under Atmanirbhar Bharat, 4 positive indigenisation lists of over 1339 different highly complex systems, sensors, weapons and ammunitions have been published. The emphasis on indigenous development and manufacture of defence technology and equipment was further driven by contracts to the tune of Rs. 54,000 crores signed for the procurement of defence equipment and technology.
Indigenisation and self-reliance on defence manufacturing are nestled around many new age technologies and alternate sustainable solutions, and one such is the strategic use of aluminium. With its high strength-to-weight ratio, corrosion resistance, and ability to form large complex single castings, it has great applications in the construction of defence equipment as well as defence mobility solutions. While we are still heavily reliant on imports, we have the ability to innovate and provide locally made solutions.
In 2018-19 our total defence production was valued at Rs. 80,558 crores and our exports were just Rs. 8320 crores. By 2025 the Ministry of defence is targeting Rs 1.75 lakh crore of domestic defence manufacturing, which includes Rs 35,000 crore of exports. However, our manufacturing power has to be supported by foreign investment flows, and for this, adherence to precision and quality manufacturing of defence equipment is paramount. The six-fold increase in our national arms exports during 2014 to 2022 is a sign of our growing export strength in the sector.
Self-reliance, thus, entails lower dependence on imports and associated strategic agreements, and it will also enhance India’s standing as an exporter of defence equipment and technical know-how.Â
Self-reliance in Critical InfrastructureÂ
Whilst self-reliance in the defence sector is pivotal for India’s economic prospects in the years to follow, self-reliance in the development of critical infrastructure is also an important goal. Sectors such as transport, communication, health care, and sanitation serve as the fundamental pillars of national progress and remain at the forefront of national policies and budgetary outlays.Â
The railway and roadway networks of India are, inarguably, at the core of the government’s infrastructure expenditure, with a separate budget dedicated to these sectors. The rail network unites the length and breadth of the country, whilst the roadways fill in the last mile of connectivity. With the goal to upgrade India’s highways network, the union budget for FY 2021-2022 emphasised higher capital expenditure in the sector. The railway is already seeing indigenised solutions such as aluminium freight rakes being adopted by the Indian government. The upgradation and extension of the rail and road networks are instrumental from the point of view of public mobility as well as the movement of goods and demand sustainable durable solutions.
For India’s supply chain across sectors to improve, there is a greater need to improve the existing infrastructure of transport. More public-private partnerships are key to the attainment of self-reliance in the transport sector. With higher self-sufficiency in the supply chain India will be well placed to scale up its domestic capacity. Not only is this important from a cost-reduction point of view, but it is also instrumental to the generation of substantial employment opportunities and value addition to the economy.
From the construction of modes of public transport such as roads, bridges, and metro networks to the development of critical infrastructure such as hospitals and schools, the construction sector plays a role in nurturing, educating and caring for the citizens and is hence crucial in nation building. New age solutions using sustainable alternate metals like Aluminium castings add longevity in our infrastructure and construction on account of its high durable, non-corrosive recyclable nature metal also adds to the beautification of our country’s infrastructure and ends up being sustainable in the long run.Â
Towards A More Self-reliant IndiaÂ
A goal as lofty as attaining self-reliance across the spectrum of the economy cannot be achieved by policy support and outlay from the government alone. All private manufacturers need to push the needle with local innovation and smart solutions to lower imports and get India on the global map as a provider of quality equipment and solutions.
With a higher emphasis on domestic production, research and development, job creation, import substitution, and export promotion, particularly in strategically important and capital-intensive sectors such as defence and critical infrastructure, India can well and truly launch herself as the all-empowering force of true independence and realise her full potential.