India Focuses On Strategic Sectors Amid Global Uncertainty

India's Department of Economic Affairs says building capacity in strategic sectors is important amid global economic uncertainty.

India is placing greater emphasis on building domestic capacity in strategic sectors as global economic conditions remain uncertain, Economic Affairs Secretary Anuradha Thakur said on September 24, 2026. Speaking at the State Bank of India Banking and Economics Conclave, Thakur said India needs greater strategic resilience and highlighted areas such as semiconductors. The comments come as governments and businesses worldwide continue to deal with changing trade conditions, supply-chain risks and geopolitical uncertainty. For India, the focus is not simply on increasing production at home but also on developing capabilities that can reduce vulnerabilities in critical parts of the economy.

What India Is Focusing On

According to the Department of Economic Affairs Secretary, India needs to develop stronger domestic capabilities in strategic sectors. Semiconductors were specifically highlighted as an area where building capacity can help strengthen economic resilience.

Strategic sectors are industries that can have an unusually large effect on a country's economy, technology, infrastructure or national security. Semiconductors are one example because they are essential components in products ranging from electronics and vehicles to communications equipment and industrial systems.

Why Strategic Resilience Matters

Global supply chains have become more exposed to geopolitical tensions, trade restrictions and disruptions. When an important component is produced in only a small number of locations, a disruption in those locations can affect manufacturers and consumers elsewhere.

Building domestic capacity can reduce some of these vulnerabilities. However, domestic production does not necessarily mean complete independence from international suppliers. Modern manufacturing often depends on components, raw materials, technology and equipment sourced from several countries.

The broader objective is therefore to create a more resilient economic system that can continue functioning when international conditions become less predictable.

Semiconductors Are A Key Example

Semiconductors are small electronic components that control or process electrical signals. They are fundamental to modern technology and are used in smartphones, computers, automobiles, telecommunications equipment, industrial machinery and many other products.

For India, developing a stronger semiconductor ecosystem could involve several stages, including chip manufacturing, packaging and testing, equipment, design and supporting supply chains.

The economic impact would therefore extend beyond semiconductor factories themselves. A wider ecosystem can potentially create demand for specialised services, engineering skills, logistics and other industrial capabilities.

India's Position In The Global Economy

Thakur also said India has moved from seeking greater representation in global economic institutions toward playing a larger role in shaping global economic agendas. Her remarks were made in the context of India's changing position in the international economy. 1

This is a statement about India's policy and economic ambitions rather than a measurable claim that the country now controls particular international decisions. The distinction matters because global economic institutions involve many countries and competing interests.

Trade And Domestic Manufacturing

India's strategy also has a trade dimension. Greater domestic production can help companies participate in international supply chains, while reliable access to imported inputs remains important for many industries.

Reducing vulnerability therefore does not necessarily require reducing all imports. Instead, the policy challenge is to develop competitive domestic capabilities while maintaining access to important international markets, technologies and components.

What This Could Mean For Businesses

For businesses, a stronger focus on strategic sectors can create opportunities in manufacturing, technology, infrastructure and specialised services. Companies involved in supply-chain development may also benefit from greater demand for domestic production and supporting infrastructure.

At the same time, establishing globally competitive industries requires investment, skilled workers, reliable infrastructure and access to technology. Government policy can support these areas, but businesses ultimately need to produce goods and services that can compete on quality and cost.

The Wider Economic Context

The comments come as India maintains a relatively strong near-term growth outlook. The Asian Development Bank recently raised its FY2026-27 growth forecast for India to 7%, citing domestic demand, investment, manufacturing and services as important supports. 

A stronger domestic economy can make it easier for India to invest in strategic industries. However, the two issues are connected rather than identical: economic growth measures overall economic activity, while strategic resilience concerns the ability of critical industries and supply chains to withstand disruptions.

What To Watch Next

The significance of the government's strategic-sector approach will depend on implementation. Key areas to watch include the development of semiconductor capacity, the growth of supporting supply chains, investment by private companies and India's ability to connect domestic production with international markets.

Global trade conditions will also remain relevant. Changes in tariffs, technology controls, commodity markets or geopolitical relationships can affect the economics of producing strategically important goods in India.

Frequently Asked Questions

What did India's Economic Affairs Secretary say?

Anuradha Thakur said India needs to build greater capacity in strategic sectors to strengthen economic resilience amid global uncertainty.

Why were semiconductors mentioned?

Semiconductors are essential components used across electronics, vehicles, communications and industrial equipment, making them strategically important to modern economies.

What does strategic resilience mean?

It means strengthening an economy's ability to withstand disruptions affecting important industries, supplies, technology or infrastructure.

Does domestic manufacturing mean India will stop importing goods?

No. Modern industries often rely on international supply chains. Domestic capacity can reduce particular vulnerabilities while international trade continues.

What could businesses gain from this strategy?

Greater investment in strategic industries could create opportunities in manufacturing, technology, infrastructure, engineering and related services.

Why are global supply chains important?

Many products are made using components and materials from several countries. Disruptions in one location can therefore affect production elsewhere.

What will determine whether the strategy succeeds?

Implementation will depend on investment, infrastructure, skilled workers, technology, competitive production and India's ability to connect domestic industries with global markets.