India on path to becoming global industrial superpower: Report
New Delhi, May 19
India is steadily improving in terms of industrial depth to become a global superpower, a report has said.
"The challenge before India is to become a more technologically capable, industrially mature and structurally resilient one. It will have to enhance its ability to manufacture precision and high-end industrial machinery that can produce other machines, the report from India Narrative said.
It further highlighted that it has a long way to go in developing dense, vertically integrated manufacturing ecosystems seen in China, South Korea or Taiwan.
Long a services powerhouse, India is now advancing with Production‑Linked Incentives (PLI) and the 'Make in India' push to semiconductor clusters in Gujarat, Tamil Nadu and Karnataka.
If India succeeds, it could emerge as an advanced industrial and technological power, and if it fails, the country "will still continue to grow and modernise, but without fully overcoming its structural constraints or its vulnerabilities".
Though IMF projects India to become the world's third-largest economy within the next few years, India remains heavily dependent on external sources for many of the products, technologies and systems powering its development, the report noted.
The other challenges are dependency on energy and critical inputs. While India still imports 85 per cent of its crude oil and 50 per cent of natural gas, the country has diversified its supply chains, expanded renewable capacity and accelerated domestic processing initiatives for battery materials and other critical inputs.
The country is also heavily reliant on China for processing and supply chains, which affects the competitiveness of EVs, renewables, electronics and defence systems.
Fertiliser has a direct bearing on food security, but India currently imports over 70 per cent of potash, phosphates and other products from Russia, Saudi Arabia, China and Morocco.
Such a vulnerability can easily induce food inflation and farmer distress during supply shocks, the report cautioned.
The report reminded us that current global powers are also dependent on many resources, but they overcame it through industrial depth, technological capability and diversified supply chains.
Indian engineers and technology professionals helped power companies like Google and Microsoft but India did not build similar companies and manufacturing ecosystems with such technological depth and global reach, it noted.
— IANS
Reader Comments
As an engineer in Bengaluru, I see the potential but also the gaps. We have the talent but lack the ecosystem for high-end precision manufacturing. The report rightly points out that we need to move beyond services to industrial depth. Let's hope policy consistency and infrastructure catch up fast.
Interesting perspective from India. The comparison with China is fair, but India has its own path. The demographic dividend and English-speaking workforce are unique advantages. However, the energy dependence and fertilizer imports are worrying vulnerabilities that need urgent attention.
I'm cautiously optimistic. The semiconductor push in Gujarat is encouraging, but we need more skilling programs at grassroots level. However, the report's point about our engineers powering global tech giants but not building our own companies is spot on. Time to convert brain drain into brain gain!
Impressive aspiration but the reality is tough. India still imports most of its electronics and defense equipment. The PLI schemes are good but need to be coupled with R&D incentives. The food security concern about fertilizers is real - we saw what happened during the Russia-Ukraine war. 🚜⚙️
Finally a realistic assessment! We need to stop celebrating mediocrity and focus on high-value manufacturing. The report's mention of import dependence on energy and critical minerals is a wake-up call. India should leverage its IT prowess to create smart factories and not just back-office services.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.