Parliamentary Committee Presents Report on Crisis in Small Indian Ordnance Factories: Losses Exceed 600 Crore

During his Independence Day speech, Prime Minister Narendra Modi emphasized the necessity of utilizing technology and fostering entrepreneurship to ensure the country's future growth. He also urged the youth of India to master new technologies, including artificial intelligence (AI).

As part of efforts to achieve self-sufficiency in various sectors, the Prime Minister announced that India plans to commission another five to eight semiconductor manufacturing facilities over the next seven to eight years. He noted that three large semiconductor plants are currently operating in the country, whose products will be exported. However, details of these projects were not disclosed.

Modi pointed out that India has discussed the topic of semiconductors for many years but lacked large-scale manufacturing facilities. He stressed the critical importance of chips in the modern digital world and technological era, stating that they are indispensable in all fields—from electronics and medical equipment to transport systems—and without them, the entire world could come to a standstill.

India's focus on semiconductors was initiated by the central government's launch of the India Semiconductor Mission in 2021. The first version of this mission was supported by an incentive scheme worth 76,000 crore rupees, which provided fiscal support of up to 50 percent for silicon fabs, semiconductor enterprises, assembly and testing units, and chip design. Earlier this year, the government announced the India Semiconductor Mission 2.0 with allocations of 1.27 trillion rupees. To date, 12 manufacturing units have been approved under the first Mission.

Furthermore, the Prime Minister highlighted the need to adopt technologies such as AI. In his Red Fort address, he stated that the government would train one crore (ten million) young people in AI skills over the next year.

Prime Minister Narendra Modi addressed the nation on Independence Day, emphasizing two key areas that will help solve future challenges related to technology and energy: ensuring energy security and securing critical minerals.

Speaking from the Red Fort, Modi stressed that the modern world cannot function without energy. He stated that powering data centers, artificial intelligence (AI), and chips requires a massive amount of electricity, making energy security an urgent need, and the government has already taken several decisive steps in this direction.

These statements came against the backdrop of an energy shock caused by the war in the Middle East, which tested the energy supply strategy of countries like India, heavily dependent on imports of crude oil, natural gas, and liquefied natural gas (LNG).

Modi noted that despite concerns from some citizens regarding supplies of petrol, diesel, and LNG during the Middle East crisis, the government managed to ensure sufficient energy reserves.

Critical Minerals Priority for Technological Progress

Furthermore, the Prime Minister pointed out that technological development is directly dependent on the availability of critical minerals, and the country is actively working to secure itself in this area. He announced the launch of the National Mission on Critical Minerals and the creation of the Critical Minerals Corridor. He also mentioned that agreements are being concluded with various nations, and the global community is increasingly trusting India in matters of critical minerals.

This mission was established by the government in 2025 with the aim of achieving self-sufficiency and guaranteeing reliable supply chains for critical minerals, including lithium, nickel, cobalt, and rare earth elements, which are vital for the production of clean energy, electric vehicles, and high-tech defense manufacturing.

Accelerating Industrial Growth and Electrification

Praising the government's efforts to stimulate production, Modi highlighted significant growth over the last 12 years: the production of modern railway coaches has increased 21 times, defense production has grown fourfold, and electronics production has increased sevenfold.

The Prime Minister also highlighted the pace of railway electrification, noting that 70 percent of the network has been electrified in the last ten years, compared to 30 percent over the previous 90 years. He emphasized that full electrification was completed in one decade, whereas it previously took 90 years, and added that electrification helped save imported diesel and improved the ecological situation.

Moreover, Modi announced that India launched its first hydrogen fuel train, placing the country among the world leaders in hydrogen train technology. This 10-coach set, named 'NaMo Green Rail', was launched on July 17, 2026, operating on the Jind-Sonipat section of 89 kilometers of the Northern Railway.

Concluding his speech, Modi spoke of India's great dream to build a developed nation by 2047, relying on the strength and determination of 140 million Indians. He added that the aspiration of the world's most populous country to become developed reflects its confidence and ambition, prompting the world to view India differently.

Prime Minister Narendra Modi spoke about significant changes in India's economy during his tenure while celebrating the 80th anniversary of Independence Day at the Red Fort. He noted that about twelve years ago, India was listed among the 'Fragile Five' global economies, but today the country is among the world's large and rapidly growing economies.

In his address, Modi stated that the global community once categorized India's economy as part of the 'Fragile Five,' but over the last 12 years, the country has established itself as a powerful economic force. He added that India surpassed Japan last year, becoming the fourth-largest economy in the world, behind the US, China, and Germany.

'Fragile Five' was first used in 2013 by the Global Investment Bank Morgan Stanley. This group included Brazil, Indonesia, South Africa, and Turkey, in addition to India. These five developing economies were considered relatively sensitive to external financial shocks.

At that time, India faced several economic challenges: inflation reached double-digit levels, the current account deficit (CAD) increased, the rupee weakened, and the country's economy was heavily dependent on foreign capital. Concurrently, the US Federal Reserve began gradually scaling back its bond-buying program. Due to concerns about rising interest rates in America, foreign investors started withdrawing funds from emerging markets.

India's economy was highly susceptible to changes in capital inflow around 2013. In just a few months, the value of the rupee dropped by approximately 12% against the dollar. Furthermore, in 2012, India's current account deficit reached nearly 5.1% of GDP, meaning the country's import expenditures significantly exceeded export revenues. The rise in gold imports also put pressure on India's external account. Concerns over foreign exchange reserves and capital inflow cast doubt on India's economic stability among investors.

Despite this, India soon exited the 'Fragile Five' list. By 2014, the external account improved, and foreign exchange reserves strengthened. The International Monetary Fund (IMF) also noted a significant improvement in India's macroeconomic situation during that period. Various economic steps were credited with this change. Measures were taken to restrict gold imports to reduce the current account deficit and to strengthen the focus on increasing exports. Many experts link this economic stabilization to the tenure of then Reserve Bank of India Governor Raghuram Rajan.

Years later, after leaving the 'Fragile Five' group in 2014, India has solidified its position in the global economy through rapid economic growth. Prime Minister Modi presented this transition as the economic journey of the last 12 years. The 'Fragile Five' period in 2013, the macroeconomic turnaround in 2014, and achieving the status of the world's fourth-largest economy are important milestones in understanding India's evolving economic profile.