By Ajai Chowdhry
At a time when the US and China, are vying for global dominance, India must reflect on its global role in the coming decades. Today, every country is exploring ways to get strategic autonomy by becoming self-reliant in key technology areas such as in AI, quantum, defence, drones and other dual-use sectors.
This is bound to find resistance from the West and China alike. China’s rise did not bother the US and Europe until the cheap Chinese labour was supplicant to technologically sophisticated Western firms. However, once Chinese firms entered domains dominated by Western companies, the West started resisting China’s rise. India too will face similar resistance from China as no incumbent vacates the seat without a good fight.
The government’s focus on “Atmanirbhar Bharat” reflects a desire to reduce economic dependencies, in critical sectors like defence, technology, and manufacturing. This vision aligns with India’s need to navigate a resisted rise, as it prepares to face challenges from those who see its ascent as a threat to their hegemony. The need for strategic autonomy and India’s industrial aspirations are intertwined. A strong product design and development mindset will reduce the critical dependencies and help firms move up the value chain while altering the structure of the economy from “services-only” to “services and product” economy.
The time has come for India to incentivise its workforce to create global products from India. For this, we will need to create new infrastructure for innovation where labs, in corporate and academic institutions, will be pivotal to our intellectual culture.
Large Indian corporations must establish design labs, incubation centres, and strong R&D teams. The era where corporate houses imported capital goods from the West and offered cost-competitive services is coming to an end. The modern economy will be an IP-driven economy. We need to learn from the success in digital payments, telecommunications, vaccines, and trains, and use this playbook in other emerging areas.
The desire to reduce reliance on China and align with US and Japan has led India to make efforts in semiconductors and establish a domestic fabrication industry. However, success depends not just on manufacturing capacity but also on design expertise. Chip design, systems & subsystems design is where value creation lies. Indian companies must start creating chip products.
The country’s long-term growth hinges on policies like PLIs and digital infrastructure investments, complemented by design innovation and R&D. The government and private sector must prioritise innovation, with public funding supporting private R&D efforts.
India, poised to become the world’s third-largest economy, must prioritise not just growth but also strategic production of indispensable goods. By leading in key sectors where its exports can influence the global economy, India can secure leverage and strategic autonomy.
The writer is chairman, EPIC Foundation and MGB (Mission Governing Board), National Quantum Mission.
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