India’s global image has transformed from 2017 to 2025. Once seen mainly for its culture and spirituality, India is now recognised as a strong economic and geopolitical player. The shift is rooted in the Aatmanirbhar Bharat (self-reliant India) initiative that has reshaped its economy, defence, technology, and diplomacy.
Economic Transformation and Industrial Growth
India leveraged its demographic dividend and large domestic market to attract global investments. Production-Linked Incentive (PLI) schemes boosted sectors like electronics, pharmaceuticals, and textiles. These industries shifted from import dependence to indigenous strength. The digital economy now contributes nearly 12% of GDP and is expected to reach 20% by 2030. This growth has made India a preferred destination for companies diversifying from China.
Defence Production and Export Expansion
India’s defence manufacturing soared with a 174% increase since 2014, reaching ₹1.27 lakh crore in 2023-24. The ‘Make in India’ campaign played a key role in this growth. Import dependence has decreased as India now exports defence equipment to over 85 countries. Defence exports hit a record ₹23,622 crore in 2024-25, marking India’s transition from the largest arms importer to an emerging global supplier.
Technological Advancements and Innovation
The Semiconductor Mission aims to establish India as a semiconductor hub, a sector long elusive since the 1980s. India is the world’s third-largest bio-economy, driven by investments in biotech, pharmaceuticals, and digital health. The pandemic vaccine success was a result of this foundation. India’s startup ecosystem ranks third globally, innovating in AI, clean energy, and more, reinforcing the self-reliance vision.
Agricultural Modernisation and Farmer Empowerment
Farmers benefit from digital marketplaces, precision farming, and direct benefit transfers. These tools reduce dependency on intermediaries and enable farmers to produce for global markets. Agriculture is evolving from subsistence to a market-oriented sector, enhancing rural incomes and contributing to India’s economic resilience.
Geopolitical Strategy and Diplomatic Assertiveness
India maintains pragmatic neutrality in global affairs, balancing relations with diverse powers like the US, Russia, China, and Middle Eastern countries. It refuses to be drawn into binary geopolitical rivalries. This multipolar diplomacy strengthens India’s sovereignty and global influence. India actively participates in climate talks, trade negotiations, and conflict mediation with growing confidence.
Governance and Policy Effectiveness
India’s governance has shifted from policy paralysis to policy power. Initiatives like Jan Dhan, UPI, Aadhaar, and GST impact over a billion people. Efficient policymaking enhances India’s domestic credibility and global stature. The government’s clear and assertive communication marks a new phase in India’s international engagement.
Questions for UPSC:
- Taking example of India’s Aatmanirbhar Bharat initiative, discuss how economic self-reliance can influence a nation’s global geopolitical stance.
- Examine the role of digital economy and startup ecosystems in transforming developing countries into global innovation hubs.
- Analyse the impact of multipolar diplomacy on India’s foreign policy and its ability to maintain strategic autonomy in a volatile world.
- Discuss in the light of India’s defence manufacturing growth, the challenges and opportunities in reducing import dependence while expanding exports in the defence sector.
