Context: In order to become truly self-reliant, India should rejuvenate investments in public sector undertaking and R&D.
Historical Mistakes
Lacked Upgrade: No modernisation in state-run heavy industries and strategic sectors to climb higher up the technological ladder.
India’s industrial ecosystem was characterised by low productivity, poor quality, low technology, and was globally uncompetitive.
Missed Third Industrial Revolution: Comprising electronic goods, microprocessors, decentralised manufacturing and global value chains.
E.g. India being the world’s 2nd largest smartphone market is nowhere close in its manufacturing
Rubbished Self-reliance: After liberalisation, self-reliance was reinvented in terms of freedom of import in technologies. Two related ideas that faulted in providing results are:
Undermining PSUs as sluggish: led to low investments in PSU and hand private sector relied on imports and showed no appetite for technology upgradation.
Over-expectations from FDI: Foreign major keep strategic knowledge in offshore bases and setting up of manufacturing facilities did not guarantee for technology adoption.
Way Forward: Indigenous Endeavour
Planned state investments: State-funded R&D, in basic research, by PSUs and research institutions and universities need to be scaled up.
Upgrade and reorient PSUs: according to present indigenous needs and future evaluation.
Private sector delivery-oriented R&D: link it to participation in manufacturing at appropriate levels of the supply chain.
Capture 4th Industrial Revolution: self-reliant capabilities in electric and fuel cell vehicles, electricity storage systems, solar cells and modules, aircraft including UAVs, AI, robotics and automation, biotech/pharma.
Ramped up public expenditure on Education and Health: No country has achieved self-reliance without mass quality public education and a stronger public health system.