Government policies and interventions for development in various sectors
Indian Economy and issues relating to planning, mobilization, of resources
Atmanirbhar Bharat: Success depends on how Governance proceeds
Context: The pursuit of Atmanirbharta sows the seeds for a new course of long-term development for India
Significance of Atmanirbharat
It is based on Swadeshi philosophy and Mahatma Gandhi’s concept of a self-reliant India.
It could serve as the pivot on which India can emerge as a hub for manufacturing and investments.
What should be the direction of government’s policies to achieve it?
Focus on Raw materials: Incentivising the establishment of production facilities in the country is critical, not just for assembly, but for raw materials, too
Country Specific Foreign Policy: The government should consider moving away from broad-stroke international policies and shift to a country-to-country model
Bilateralism over multilateralism: The focus should remain on bilateral trade agreements, which ensure a balance of payments as well as technology-sharing.
Partnership based on Complementarities: The government should forge partnership/alliance models with other countries and companies, especially in areas where indigenous capabilities do not exist.
Promote Innovation: India should also need to incentivise innovation, research and development to keep India at the cutting edge of the industry
Way Ahead
R& D development: Global innovation centres needs to be set up in India. Also, NASA-ISRO like partnership should be enhanced across institutions and fields.
Governance Simplification: Heavy investment on technology in government procedures and bureaucracy is needed to improve ‘ease of doing business’ climate.
Infrastructure Financing: Building world-class infrastructure is extremely critical, and this requires huge investments. A strong framework for collaboration (e.g. contracting) and financing such investments needs to be established.
Collaborative Federalism: While competitive federalism is required in the long term, ensuring a common playing field, with a more cohesive and consistent policy framework achieved through collaboration, is vital.
Change in Mindset: A cultural shift is required in the public sector and bureaucracy to avoid the constant distrust—whether it is towards private organisations or the public at large
Act Faster: If bold measures are not taken, in land, labour & law areas, over the next five to ten years, China might dominate as superpower and India’s ability to achieve economic independence will get drastically impacted.
Conclusion
There has been a resurgence in protectionist policies in recent years. The success of the self-reliance vision will depend on how well India is able to negotiate terms with countries, especially the US and European nations
