By Mmhonlumo Kikon
India’s industrial strategy is undergoing a significant transformation in response to global geopolitical shifts and supply chain realignments. The government’s renewed focus is on self-reliance (Atmanirbhar Bharat), technological innovation, and strategic global partnerships. Insights from a conversation that I had with Shri Amardeep Singh Bhatia, IAS, Secretary of the Department for Promotion of Industry and Internal Trade (DPIIT), highlight how India is steering its industrial ecosystem towards resilience, inclusivity, and global competitiveness. And in the light of the increasing reliance on technology, as evidenced from the war in Ukraine and elsewhere, it is necessary to revisit the strides that India has made in this important sector. The following are the salient points discussed with him before the onset of the present conflict.
India’s reliance on imports for key components-such as lithium-ion batteries, industrial machinery, and raw materials, particularly from China-poses both strategic and economic risks. The government’s approach is holistic, stimulating both demand and supply to build a robust domestic industrial base. The Production Linked Incentive (PLI) scheme, with a total outlay of Rs 1.97 lakh crore, is a cornerstone policy designed to boost domestic manufacturing and reduce import dependence in sectors like solar PV modules, advanced chemistry cell (ACC) batteries, and telecom equipment.
Quality Control Orders (QCOs) have been effective in curbing the import of substandard products. For example, in the toy sector, imports dropped by 52% and exports rose by 239% from FY 2014-15 to FY 2022-23. This model is being extended to high-priority sectors such as electric vehicles (EVs) and renewable energy, with initiatives like the PM Surya Ghar Muft Bijlee Yojana aimed at driving both demand and supply chain resilience.
Support for MSMEs and startups is being provided through the Raising and Accelerating MSME Performance (RAMP) scheme, which focuses on innovation, sustainability, and market access. Over four lakh MSMEs have benefited from this initiative. Additionally, the government is promoting R&D in alternate battery chemistries, such as sodium-ion, under missions like MAHA-EV, launched by the Anusandhan National Research Foundation (ANRF). The MAHA-EV mission, in particular, is driving research in tropical EV batteries, power electronics, and charging infrastructure, positioning India as a future leader in electric mobility solutions.
Catalyzing India’s EV Ecosystem
Reducing oil imports and advancing clean mobility are central to India’s climate and industrial policies. Since COP26, the government has expanded EV infrastructure, committed to achieving 500 GW of non-fossil energy capacity by 2030, and set a net-zero target for 2070.
Schemes such as FAME-II and the National Electric Mobility Mission Plan (NEMMP) 2020 have provided upfront incentives for EV buyers. The recently launched PM E-DRIVE scheme, with an outlay of Rs 10,900 crore, aims to further boost EV purchases and expand charging infrastructure until March 2026. The EV sector is projected to grow at a 45.5% CAGR between 2022 and 2030, creating a fertile environment for domestic manufacturing of EV components and battery systems.
The government is also leading by example, with officials-including Shri Bhatia-adopting EVs in their own operations. This comprehensive approach, from demand incentives to supply chain development, is designed to make India a global leader in EV manufacturing.
Strategic International Collaborations in
Emerging Technologies
While self-reliance is a priority, strategic international collaborations are essential, especially in advanced and emerging technologies. Through initiatives like the U.S.-India Initiative on Critical and Emerging Technology (iCET), India is partnering with global leaders in semiconductors, quantum computing, AI, and biotechnology.
The Quad framework has further strengthened these collaborations, with projects such as the Indo-Pacific Logistics Network and the AI-ENGAGE initiative for agricultural innovation. A joint fund exceeding USD 7.5 million has been allocated for collaborative research. India’s G20 presidency also emphasized technology-driven inclusive growth and the development of digital public infrastructure.
These efforts demonstrate India’s commitment to co-developing cutting-edge solutions with global partners, ensuring that domestic innovation benefits from shared expertise and research synergies.
Strengthening Global Trade through Lines
of Credit
To promote industrial growth and exports, India has actively utilized concessional Lines of Credit (LOCs) to enhance trade ties and infrastructure development in partner countries. Under the Indian Development and Economic Assistance Scheme (IDEAS), over 300 LOCs worth USD 32 billion have been extended to 68 countries, supporting India’s “Neighbourhood First” and “Global South” strategies. These LOCs facilitate diplomatic goodwill, mutual economic benefit, and market access for Indian businesses, particularly in sectors like railways, IT, and agriculture.
Bolstering Intellectual Property for Innovation Security
A robust intellectual property (IP) regime is vital for safeguarding innovation. India has made significant progress through policies supporting startups, fee reductions, and expedited patent examination. The National Intellectual Property Awareness Mission (NIPAM) has reached over two million students, and the IP Mitra scheme provides expert guidance for startups.
The introduction of a regional-language adaptation of the WIPO IP Diagnostics Tool has streamlined the IP filing process. Patent grants in India have increased from 5,978 in 2014-15 to over 103,000 in 2023-24, and startup patent filings have risen more than tenfold since 2016-17. However, enforcement in cyberspace, pharmaceuticals, and economic offenses remains an ongoing challenge, though the government is actively working to strengthen these areas.
Conclusion
India’s industrial and innovation policy is multi-dimensional, aiming to reduce strategic dependencies, enhance domestic capabilities, embrace global technologies, and build a resilient ecosystem for startups and MSMEs. As highlighted by Amardeep Singh Bhatia, India’s path forward is one of confident self-reliance, underpinned by strategic global partnerships and robust domestic capacity-building. The pursuit of technological sovereignty, sustainable growth, and export competitiveness marks a pivotal shift in India’s industrial journey-balancing ambition with pragmatism.
(The writer is Fellow, India Technology Policy, Pacific Forum)