India is on a steady path to enhance its industrial capabilities and emerge as a global superpower, as per a recent report. The country aims to boost its technological prowess, industrial maturity, and structural resilience. To achieve this, India needs to focus on manufacturing precision machinery capable of producing other advanced machines, the report by India Narrative highlighted.
While India has made progress, it still lags behind countries like China, South Korea, and Taiwan in developing dense manufacturing ecosystems. The nation is now leveraging initiatives like Production-Linked Incentives (PLI) and the ‘Make in India’ campaign to bolster semiconductor clusters in states like Gujarat, Tamil Nadu, and Karnataka.
India’s success in this endeavor could position it as a leading industrial and technological force globally. However, failure to do so may impede the country’s efforts to fully overcome its structural limitations and vulnerabilities. Despite projections by the IMF forecasting India to become the world’s third-largest economy soon, the country heavily relies on external sources for various products, technologies, and systems crucial for its development.
Challenges such as energy dependency and reliance on external sources for critical inputs persist. India currently imports a significant portion of its crude oil and natural gas, although efforts to diversify supply chains and boost domestic processing of essential materials are underway. The country’s heavy dependence on China for processing and supply chains impacts the competitiveness of sectors like electric vehicles, renewables, electronics, and defense systems.
Moreover, India’s food security is at risk due to its reliance on imports for fertilizers. The country imports over 70% of potash, phosphates, and other essential products from countries like Russia, Saudi Arabia, China, and Morocco. This vulnerability could lead to food inflation and farmer distress during supply disruptions, as cautioned by the report.
The report emphasizes that established global powers overcame similar challenges by developing industrial depth, technological capabilities, and diversified supply chains. While Indian engineers and tech professionals have contributed significantly to global companies like Google and Microsoft, India has yet to build similar companies and manufacturing ecosystems with comparable technological depth and global reach.
