The disruptions brought about by COVID-19 have highlighted the significance of domestic supply chains. This means localised development, manufacturing, and distribution. In India, Prime Minister Narendra Modi’s clarion call for an ‘Atmanirbhar Bharat’ (self-reliant India) is aimed at catalysing the country’s progress by strengthening local value chains and boosting innovation.

From agriculture, petrochemicals and green energy solutions to automotive and technology industries, the initiative augurs well for the domestic development of world-class products and services. Now more than ever, India Inc. can catapult its growth trajectory with a focus on self-reliance.

Accelerating the growth of India Inc.

The ‘Vocal for local’ and ‘Local for global’ initiatives will boost the consumer demand for ‘Made in India’ products and services. It will also drive Indian brands to ‘Make for the World’. Government policies on the five pillars of self-reliance – economy, infrastructure, system, demography, and demand – will augment stakeholders across the supply chain.

Let us take a look at the ways in which the vision of an ‘Atmanirbhar Bharat’ is driving change:

Localisation nurturing R&D and innovation

Innovation is the building block of progress. When companies strengthen their R&D efforts and nurture an innovation ecosystem, the scope for growth and employment opportunities increases manifold. Consequently, the two facets of an innovation ecosystem – knowledge economy and commercial economy – will contribute to holistic growth.

The country holds enormous potential to drive these efforts at scale, not just in major fields like agriculture but also in upcoming areas like renewable energy, biotechnology, robotics, and automation. To jumpstart growth across sectors, India needs to intensify state-funded and private sector R&D and make it easy for universities, researchers, and entrepreneurs to be a part of the innovation efforts.

Domestic and home-grown industries getting a fillip

Domestic and home-grown industries can play a pivotal role in realising the goal of a self-reliant India. The ‘Vocal for local’ strategy will create demand for a wide range of products and services offered by Indian brands, thus strengthening the position of domestic companies.

Leveraging the stimulus measures announced by the government, domestic and home-grown organisations will have easy access to loans and grow their business across geographies. Moreover, the initiatives around ‘Digital India’ and ‘Make in India’ will open up incredible opportunities for companies to develop technological solutions for healthcare, education, and other sectors that are now ripe for digitisation.

Building world-class products and services in India

The revised education policy focuses on robust vocational training courses and industry-academia partnerships, thus paving the way for holistic skill development. By channelling energies on skill development and entrepreneurship, India needs to boost job creation and economic activity.

At the academic level, this translates to incubator cells or entrepreneurship cells that hone problem-solving, risk-taking, and creative thinking abilities of students. For India Inc., it provides the pathway to commercialise innovations, by sparking ideas at research labs and taking it to the market. Further, a culture of innovation, when combined with a robust Intellectual Property (IP) framework, motivates talented entrepreneurs to translate their vision into commercially successful products and services.

Reducing imports and conserving foreign exchange

Self-reliance will not only decrease the country’s dependency on imports but also boost the export volumes in the long run. With an enhanced focus on local manufacturing, investments will also flow into exports of finished goods. Subsequently, India Inc. can bridge the widening import-export gaps and position itself as a net exporter.

Emerging stronger as a nation