India’s Dependence on Foreign Nations

Syllabus: General Studies Paper-II (International Relations)
Source: TH

Context:

Recent statements by the Prime Minister highlight India’s deep reliance on major powers—China, Russia, and the United States—despite India’s rhetoric of strategic autonomy and multi-alignment. Understanding these dependencies is crucial for assessing India’s foreign policy and economic strategy.

Key Areas of Dependence

1. Dependence on the United States

• Trade and Markets: The US is India’s largest export destination, critical for industrial revenue.
• Education and Migration: Indian professionals dominate H-1B visas, with around 70% approvals in FY2023. The US remains a top choice for Indian students, and Green Cards are a long-term aspiration.
• Defense and Technology: India relies on US arms, engines for fighter jets, missiles, drones, and reconnaissance systems. Strategically, the US acts as a counterbalance to China in the Indo-Pacific.

2. Dependence on China

• Consumer and Industrial Goods: Chinese products dominate India’s electronics, mobile components, and household appliances.
• Pharmaceutical Inputs: China supplies APIs and precursor chemicals vital for India’s pharma sector.
• Critical Commodities and Technology: Rare earth metals, solar equipment (polysilicon, wafers), fertilizers, machinery, computers, and semiconductors are largely imported from China.

3. Dependence on Russia

• Defense Equipment: India has relied on Russian arms since the 1970s; 60–70% of Army, Navy, and Air Force equipment depends on Russia.
• Energy: Russian oil imports surged from 4% in 2022 to nearly 40% at peak, locking refineries into Russian supplies.

Impacts of Foreign Dependence

• Strategic Constraints: India must balance relations carefully—it cannot antagonize China, Russia, or the US without diplomatic costs.
• Technological Gaps: Dependence persists in engines, sensors, and semiconductors, despite policy measures.
• Slow Capacity Building: Developing domestic capabilities takes years; policies often lag behind strategic needs.
• Capital and Skill Shortages: R&D, infrastructure, and human capital gaps hinder self-reliance.
• External Pressures: Sanctions, trade barriers, or diplomatic pressure can impact India when dependence is high.

Measures to Reduce Dependence

• Make in India: Boost domestic manufacturing in defense, electronics, and infrastructure.
• Defense Production & Indigenisation: Indigenous defense production reached ₹1.27 lakh crore (FY 2023–24), with 14,000+ items indigenised.
• Atmanirbhar Bharat Abhiyan: Promote self-reliance across sectors.
• Semiconductor & Nuclear Push: First Made-in-India semiconductor by 2025; private investment in nuclear energy encouraged.
• Critical Minerals Mission: 1,200 sites under exploration for energy and defense minerals.
• Energy Independence: Offshore exploration, green hydrogen, and solar expansion to reduce fuel import dependence.
• Strategic Autonomy: Multi-alignment policy balances global partnerships while preserving national interests.
• Operation Sindoor: Indigenous counter-terror operations signal technological independence.
• Indus Waters Treaty Reassessment: Strengthening control over water resources.

Policy Recommendations

1. Revive Manufacturing: Prioritize a manufacturing revolution to match India’s GDP growth.
2. Diversify Inputs: Reduce reliance on single-country suppliers for energy, minerals, and chemicals.
3. Expand Exports: Broaden trade beyond the US to enhance economic independence.
4. Unlock Domestic Potential: Encourage private and public sector entrepreneurship to build resilient supply chains and competitive industries.