India's 'Make in India' initiative is failing to meet its goals, with the manufacturing sector's share of GDP declining to 13% despite ambitions to become a global alternative to China.
China strategically controls critical chokepoints in advanced manufacturing, including raw materials, machinery, and essential technology for sectors like batteries and semiconductors.
Geopolitical mistrust between India and China creates significant operational hurdles, such as visa restrictions and investment blockages, forcing companies to use complex workarounds.
Even when Indian companies like Reliance Industries acquire Chinese machinery, they are unable to access the crucial operational know-how, highlighting a critical technology transfer gap that stalls progress.
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Concerns Raised
India's increasing, not decreasing, dependence on China for critical manufacturing inputs.
China's use of export controls to protect its technological dominance and stifle competitors.
The failure of the 'Make in India' initiative to achieve its stated GDP contribution goals.
Deep-seated geopolitical mistrust hindering necessary economic and technological collaboration.
Opportunities Identified
India's recent, albeit limited, easing of FDI rules for companies with minority Chinese ownership.
Pivoting national strategy to focus on leapfrogging to next-generation technologies where China is not yet dominant.
Leveraging India's vast domestic market and data generation capabilities as a strategic asset in future technology partnerships.