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PM ‘s Address To Nation
- On August 15, Prime Minister Narendra Modi addressedthe nation fromthe Red Fort on the occasion ofIndia’s 74th Independence Day.
- In the one-hour 26-minute speech, he focused on the themes of “Aatma Nirbhar Bharat (self-reliant India)”, “Vocal for local” and “Make in India to Make for World“
Atmanirbhar Bharat
- Atmanirbhar Bharatis the vision of the Prime MinisterNarendra Modiof making India a self-reliant nation.
- The first mention of this came in the form of the ‘Atmanirbhar Bharata Abhiyan’ or ‘Self-Reliant India Mission‘ during the announcement of the coronavirus pandemic related economic package on 12 May 2020.
What Really is ‘Aatmanirbhar’
- Atmanirbharor self reliance means putting ban on imported goods and boycotting every foreign product.
- आत्मनिर्भरयास्वावलंबिकाअर्भहैआयानििवस्तुओंपरप्रनिबंधलगािाऔरहरनवदेशीउत्पादकाबनहष्कारकरिा।
- OR
- Atmanirbharmeans to promote and give preference to indigenousproductsand ensuring that these products match their imported counterparts in cost and quality.
- आत्मनिर्भरकाअर्भहैस्वदेशीउत्पाद ंक बढावादेिाऔरवरीयिादेिाऔरयहसुनिनििकरिानकयेउत्पादलागिऔरगुणवत्तामेंअपिेआयानििसमकक् ंसेमेलखािेहैं।
First Approach
- MoD’S recent announcement to gradually ban imports of 101 defence items looks in harmony with the first approach.
- MoD wants to achieve self reliance in defence sector by replacing imported products with domestically manufactured products.
Truly Indigenous?
- Although imports of these systems will be banned but imports of their critical sub-systems will go on.
- Indian defence industry will make systems based on imported sub-systems and parts.
HAL TejasExample of First Approach
- Our present demand of a light combat aircraft like Tejas is limited. We want only 100 such fighter aircraft currently.
- But in the process of making an indigenous fighter aircraft we invested huge amount of resources over last four decades.
- And still after so much investment of time and money the light fighter is nowhere near complete indigenisation.
HAL Tejas
- Almost 70% of the aircraft’s systems still needto be imported.
- Tejas LCA is poweredby an imported General Electric 85kN F404-GE-IN20 turbofan engine.
- RADARused in Tejasis imported from Israel.
Problems with First Approach
- Indigenization of a defence products doesn’t happen in one five-year election cycle. It could take two or three of election cycles before we see real results.
- Technical advancement in any sector requires decades of researchand development.
- In addition to this, it demands huge investment in setting up manufacturing facilities for production of these products.
Second Approach
- In 1980sIndia opted the second approach.
- India permitted its PSUs to have a joint venture with foreign companies to acquire technical knowhow and global managerial skills.
- Within two decades these joint ventures started mass production of low cost high quality products.
Maruti SuzukiExample of Second Approach
- In 1980 India built a total of 30,500 , high cost, low quality and scarce cars.
- Maruti Udyog Limited was founded by thegovernment of Indiaon 24 February 1981.
- In 1982, a license andjoint ventureagreement was signed between Maruti Udyog Ltd andSuzukiof Japan.
Maruti Suzuki
- At first, Maruti Suzuki was mainly an importer of cars.
- 10 years later it had produced its millionth vehicle, a low cost and high quality product for Indian consumers.
- Maruti assembled the vehicle and left the issue of indigenisation to its vendors who regulated it strictly on issues of quality and cost control.
World Class Industrial Managers
- Suzuki began asa minority partner in the PSU.
- At that time PSU was led by administrators appointed by government.
- Managerial skills and work ethics adopted by Suzuki changed these babus into world class industrial managers
Second Approach in Present Scenario
- Secretary, defence production should be easedout of his role as a nominated director in the boards of the various defence PSUs.
- The government should strategically divest from the DPSUs and allow the private sector much greater room.
- Defence-grade products, which are not needed in the kind of numbers that private industry can support, should be imported.
Recent Success of Second Approach in Other Sectors
- Within days of Centre’s ‘Atmanirbhar Bharat’ initiative:
- Two leading brands Samsung and OnePlus have decided to locally manufacture most of their televisions in India
- The country’s largest television brand Samsung will now make in India almost 85-90% of the televisions they sell in the country.
- In coming years, success of Atmanirbhar Bharat Abhiyaan will depend on the approach opted by the Indian government
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