Atmanirbharta and Strategic Autonomy in an Era of Big-Power Rivalry

Syllabus: GS3/ Economy

Context

• Recent geopolitical developments and the strategic use of trade, energy, finance and technology by major powers highlight the importance of self-reliance in critical sectors for safeguarding national security and foreign policy autonomy.

Historical Incidents of India’s External Dependencies

• Food Dependence: In the 1960s, India relied heavily on food imports under the PL‑480 Food Aid Program of the United States. The droughts of 1965–67 exposed this vulnerability and highlighted the political risks of external dependence.
  • This led to the launch of the Green Revolution, enabling India to achieve food self-sufficiency.
• Defence Equipment Dependence: The Sino‑Indian War revealed serious shortages in defence equipment. It prompted India to modernise its defence forces and diversify defence partnerships.
• Energy Dependence: The Gulf War caused a spike in oil prices and disrupted remittances and trade. This contributed to India’s Balance of Payments crisis in 1991, highlighting the vulnerability arising from energy imports.
• Foreign Exchange Constraint: India’s external financial vulnerability culminated in the 1991 Indian Economic Crisis. The crisis led to structural economic reforms under P. V. Narasimha Rao.

Contemporary Challenges to India’s Strategic Autonomy

• Energy Security Risks: India imports nearly 85% of its crude oil, largely from West Asia. Instability in the region threatens energy supplies and economic stability.
• Technological Dependence: Access to advanced technologies such as semiconductors, AI and critical minerals remains concentrated in a few countries.
• Weaponization of Economic Tools: Major powers increasingly use sanctions, financial systems and supply chains as geopolitical instruments.
• Diaspora-Related Vulnerabilities: Large Indian diaspora populations can be affected by immigration policies or geopolitical conflicts in host countries.
• Influence Operations: Globalised information ecosystems allow external actors to shape domestic policy narratives and public opinion.

Importance of Atmanirbharta (self reliance) for National Security

• Strengthening Economic Resilience: Building domestic capacity in critical sectors such as energy, food and manufacturing reduces vulnerability to external shocks.
• Enhancing Strategic Autonomy: Reduced dependence allows India to pursue an independent foreign policy without external coercion.
• Securing Supply Chains: Diversification of trade and supply sources increases economic stability.
• Supporting Defence Preparedness: Indigenous defence production ensures reliable military capabilities during crises.

Steps taken by India

• Diversification of Foreign Policy Partnerships: India has adopted a multi-alignment strategy to balance relations with major powers and reduce geopolitical dependence.
  • This includes engagement with groupings such as the Quad, BRICS, and the Shanghai Cooperation Organisation.
• Strengthening Energy Security: India has diversified energy import sources and expanded domestic energy capacity. Major initiatives include:
  • Expansion of renewable energy through the National Solar Mission.
  • Creation of strategic petroleum reserves to handle supply disruptions.
  • Diversification of oil suppliers beyond West Asia to countries like Russia, the USA, and African nations like Nigeria and Angola.
• Defence Indigenisation: India has promoted domestic defence production to reduce reliance on imports. Key initiatives include:
  • Defence Production and Export Promotion Policy (DPEPP) to encourage domestic manufacturing.
  • Expansion of indigenous capabilities through organisations such as the Defence Research and Development Organisation.
  • Up to 74% Foreign Direct Investment (FDI) is permitted under the automatic route in the defence sector, with up to 100% permitted with government approval.
• Technology and Supply Chain Resilience: 
  • Production-Linked Incentive (PLI) Schemes to promote domestic manufacturing in sectors such as electronics, semiconductors and pharmaceuticals.
  • Expansion of digital infrastructure under the Digital India initiative.

Way Ahead

• India’s pursuit of Atmanirbharta should focus on reducing strategic vulnerabilities while remaining actively engaged with the global economy. 
• Strengthening domestic capabilities and maintaining strategic autonomy will enable India to effectively navigate great-power rivalries and safeguard its long-term national interests.

Source: IE