Economic self-reliance is not a new idea for India. From the time of independence, Indian leaders understood that without economic strength, political freedom would remain incomplete. However, the definition of “self-reliance” has changed over the decades. In the 1950s and 1960s it meant building industries through import substitution; in the 1990s it meant liberalization and global integration; and today, in the 21st century, it means strategic resilience—the ability to secure critical needs, reduce excessive external dependence, and at the same time compete globally.

India’s economic self-reliance is not about closing its doors to trade or investment. Rather, it is about standing on one’s own feet while staying globally connected. This essay examines India’s journey towards economic self-reliance, its present strengths and weaknesses, and the path forward.

From Autarky To Liberalization

After 1947, India’s leaders placed a strong emphasis on self-sufficiency. The trauma of colonial exploitation had shown that dependence on foreign powers could be dangerous. Nehru’s vision was to build a self-reliant industrial base, focusing on heavy industries, public sector undertakings, and state-led planning. This strategy gave India the foundations of steel, power, and infrastructure, but it also created inefficiencies, shortages, and a lack of technological dynamism.

By the late 1980s, India’s closed economy was unable to cope with global realities. The 1991 economic reforms liberalized trade and investment, reducing tariffs and opening sectors to competition. As a result, India integrated into the world economy, becoming a major exporter of IT services, pharmaceuticals, and skilled manpower. Growth accelerated, poverty fell, and India’s global presence expanded.

Thus, India’s self-reliance philosophy shifted from autarky (self-sufficiency at all costs) to strategic integration (self-reliance with global linkages).

The Atmanirbhar Bharat Vision

The COVID-19 pandemic and rising geopolitical tensions revived the debate on self-reliance. In 2020, the Government of India launched the Atmanirbhar Bharat Abhiyan (Self-Reliant India Mission). Its goal was not to isolate India but to strengthen domestic production, innovation, and supply chains in critical areas.

The idea was simple; India must not be at the mercy of external shocks—whether they come from pandemics, conflicts, or disruptions in global trade. At the same time, India must continue to trade, invest, and collaborate with the world. This dual approach—self-reliance with openness—marks a balanced strategy.

Where Self-Reliance Is Crucial

Energy is a vulnerable sector. India imports nearly 85% of its crude oil and around half of its gas needs. This dependence makes the economy vulnerable to price shocks and geopolitical conflicts. Achieving self-reliance here means expanding renewable energy, biofuels, nuclear power, and electric mobility. India has made remarkable progress, now being the world’s third-largest producer of renewable energy.

Despite having one of the largest armies in the world, India remains dependent on imports for advanced weaponry, from fighter jets to submarines. The push for indigenization—exemplified by projects like the Tejas aircraft, INS Vikrant, and BrahMos missile—is a step towards strategic autonomy. India is the world’s second-largest consumer of smartphones but imports most components, especially semiconductors. The India Semiconductor Mission aims to establish fabs in Gujarat and other states, reducing reliance on Taiwan, South Korea, and China. This will also boost digital sovereignty.

One of India’s strongest areas of self-reliance is agriculture. The Green Revolution ensured food sufficiency, and today India is a major exporter of rice, wheat, and sugar. However, vulnerabilities remain in edible oil and pulses imports. Expanding oilseed cultivation and agri-technology can plug this gap. Among its strengths, India has also built strong capabilities in digital public goods like Aadhaar, UPI, and CoWIN. These platforms reduce foreign dependence and create world-class models of governance. Developing indigenous 5G/6G technologies and AI ecosystems is the next frontier.

Strengths Supporting Self-Reliance

India has great strengths to build on moving towards Atmanirbhar. With a young workforce, India can scale industries rapidly if skills are aligned.A population of 1.4 billion and increasing, provides the demand base for competitive production for making and consuming. India is home to over 100 unicorns, with strength in fintech, healthtech, and SaaS; innovations and entrepreneurship should be encouraged in the face of some failures. Despite challenges, India remains self-sufficient in food grains. India is a global leader in IT services exports; India earns foreign exchange and builds global influence. There is a need to invest in cutting edge technologies and develop products in the IT sector.

Challenges On Path To Self-Reliance

There are obvious challenges in realization of self-reliance. Logistics costs in India remain higher than global averages. In the area of infrastructure Ports, roads, and power supply need continued upgrades. While India has abundant labor, India has to work towards skill development for advanced manufacturing sectors. Technology Dependence on the USA and other developed nations is a handicap. Critical sectors like semiconductors, defense avionics, and medical equipment still rely heavily on imports. Heavy investments on R&D is mandatory. Fossil fuel imports remain a structural vulnerability.

India still is one nation where bureaucratic and regulatory hurdles inhibit fresh investments. Red tape and compliance costs often discourage investors and innovators.

In today’s interconnected world, no country is fully self-reliant. Even the United States depends on global supply chains; China, despite being called “the world’s factory,” relies on imported oil and advanced chip technologies. India too must strike a balance. The more important areas for India are to be self-reliant in essentials - food, energy security, defense, and digital infrastructure; be globally competitive in strengths: IT, pharmaceuticals, green energy, and high-value manufacturing; build trusted partnerships by collaborating with like-minded countries such as Japan, the EU, and ASEAN to reduce overdependence on any single power.

Key Areas To Work On

There are some key areas where India should work on immediately. India’s R&D spending is only about 0.7% of GDP, far lower than China or the U.S. Raising this is essential for innovation-led self-reliance. The Production-Linked Incentive (PLI) schemes should be deepened to create global champions in electronics, EVs, and green technologies. Small and medium enterprises form the backbone of India’s economy. Integrating them into global supply chains will boost resilience. Large-scale upskilling in AI, robotics, and advanced manufacturing is critical for future competitiveness. Green self-reliance is the future. India must lead in solar, hydrogen, and climate-friendly industries to ensure long-term security.

India’s economic self-reliance is not about shutting the doors to the world. It is about standing firm during crises, reducing vulnerabilities, and becoming globally competitive. The philosophy of Atmanirbhar Bharat represents a pragmatic approach: be self-reliant in areas where dependence is dangerous, and globally integrated in sectors where India can lead.

As India aspires to become a $5 trillion economy and a global power, economic self-reliance will be its foundation. With the right policies, investments, and innovation, India can ensure that its growth is both secure and sustainable, making it not only self-reliant but also a reliable partner for the world.

(The author is an Indian Army veteran and a contemporary affairs commentator. The views are personal. He can be reached at  kl.viswanathan@gmail.com )