Global Shift Towards Self-Reliance
The concept of aatmanirbharta, or self-reliance, is gaining global traction, led by countries like the US. This shift is evidenced by the US imposing a 50% tariff rate on India, higher than what China faces, reflecting a protectionist stance reminiscent of India's past license-permit raj.
Strategic Self-Reliance
- Self-reliance should not be a blanket approach but must be strategic and selective.
- Countries like Russia maintain strategic autonomy due to self-reliance in essential sectors like oil, gas, and defense.
United States' Approach
- Focus on domestic production of critical minerals and semiconductor chips.
- The US aims to maintain its dominance in cutting-edge technology by ensuring a stable supply of critical minerals.
China's Influence
- China's control over critical mineral supply chains provides it with substantial leverage.
- This control affects US industries reliant on rare earths, which are mostly sourced from China.
India's Self-Reliance Challenges
- India is heavily import-dependent:
- 90% for oil and gas.
- Second-largest importer of arms.
- 100% dependency on imports for critical minerals and semiconductor chips.
- Strategic autonomy is compromised due to these dependencies.
- India's relationship with the US is impacted by its reliance on Russian arms and oil.
Need for a Strategic Aatmanirbharta
- India’s self-reliance approach has been too broad-based and reliant on public sector companies.
- The focus should be narrowed to specific sectors with structural reforms to enhance competitiveness.
- Leveraging entrepreneurial talent and accessing open markets are crucial steps forward.
