[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  Surya Kanegaonkar [@suryakane](/creator/twitter/suryakane) on x 28.2K followers Created: 2025-07-12 04:59:46 UTC India’s economy is slowing. Consumption and manufacturing growth are lackluster. Global economic and geopolitical uncertainty is weighing on business sentiment, AI is replacing many jobs, and Chinese overcapacity is overwhelming companies. India’s growth story needs new drivers keeping in mind long term economic and strategic objectives. To ride through the current storm and the one that is to come, India must focus on: • Defense indigenization and manufacturing Raising defense spending to X% of GDP, or $160B, would substantially bolster domestic industrial and R&D capabilities. Everything from jet engines and satellite production to cruise missiles and unmanned vehicles will be needed. Government spending on a war economy boosts GDP, but the payoff is not always sustainable in the long run. However, in India’s case, the multiplier effect will be large, creating tailwinds for the economy. First, a large manufacturing workforce gets trained on the job. Second, the output gives the armed forces adequate deterrence and third, this gives the government better negotiating power internationally. • Innovation-linked incentive programs for R&D Design incentives to build globally competitive foundational AI models, minimally viable lithography machines, production tools and industrial robots. The gestation period will be long, perhaps earning the economy dividends over a 5-10 year time horizon. If successful, the economy will rapidly accelerate growth in the 2030s by competing with technological leaders like China and the US. Without indigenous production technology, the economy may find itself fundamentally uncompetitive in global manufacturing across several sectors. Besides becoming a potential dumping ground for cheap, machine-made foreign goods, the country may also end up as a digital colony of Big Tech. Automation and AI are the future of services and mass manufacturing. Falling behind the curve is not an option if India seeks economic prosperity and intends to retain digital sovereignty. • Fiscal spending to improve urban infrastructure and quality control This will lead to a significant boost in productivity for a growing number city dwellers. India is no longer 40:60 urban:rural. By estimates cited by a government economic advisor, the ratio has flipped. Cities are the engines of growth. Efficiency gains in transport, improved sanitation and planned urban buildout will result in multiplier effects across several growth vectors. Faster transport results in fuel savings and a lower import bill. Greener, cleaner cities cut pollution, improve public health and reduce healthcare costs. Well-planned cities retain talent, which the country is currently bleeding. In fact, world class infrastructure will incentivize the repatriation of top talent, an important factor in boosting R&D capabilities. Given the government appears cash strapped by wealth redistribution programs, there is a hard limit on defense budget hikes. Constrained by a risk averse, unimaginative bureaucracy, the chances of a R&D revolution appear slim. Since politicians and bureaucrats lack interest in urban governance and workers lack experience, civic issues may remain unaddressed. Misgovernance enables corruption without which nobody along the chain can profit. XXXXXX engagements  **Related Topics** [drivers](/topic/drivers) [coins ai](/topic/coins-ai) [Sentiment](/topic/sentiment) [Post Link](https://x.com/suryakane/status/1943898055016591746)
[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]
Surya Kanegaonkar @suryakane on x 28.2K followers
Created: 2025-07-12 04:59:46 UTC
India’s economy is slowing. Consumption and manufacturing growth are lackluster. Global economic and geopolitical uncertainty is weighing on business sentiment, AI is replacing many jobs, and Chinese overcapacity is overwhelming companies. India’s growth story needs new drivers keeping in mind long term economic and strategic objectives. To ride through the current storm and the one that is to come, India must focus on:
• Defense indigenization and manufacturing
Raising defense spending to X% of GDP, or $160B, would substantially bolster domestic industrial and R&D capabilities. Everything from jet engines and satellite production to cruise missiles and unmanned vehicles will be needed. Government spending on a war economy boosts GDP, but the payoff is not always sustainable in the long run. However, in India’s case, the multiplier effect will be large, creating tailwinds for the economy. First, a large manufacturing workforce gets trained on the job. Second, the output gives the armed forces adequate deterrence and third, this gives the government better negotiating power internationally.
• Innovation-linked incentive programs for R&D
Design incentives to build globally competitive foundational AI models, minimally viable lithography machines, production tools and industrial robots. The gestation period will be long, perhaps earning the economy dividends over a 5-10 year time horizon. If successful, the economy will rapidly accelerate growth in the 2030s by competing with technological leaders like China and the US. Without indigenous production technology, the economy may find itself fundamentally uncompetitive in global manufacturing across several sectors. Besides becoming a potential dumping ground for cheap, machine-made foreign goods, the country may also end up as a digital colony of Big Tech. Automation and AI are the future of services and mass manufacturing. Falling behind the curve is not an option if India seeks economic prosperity and intends to retain digital sovereignty.
• Fiscal spending to improve urban infrastructure and quality control
This will lead to a significant boost in productivity for a growing number city dwellers. India is no longer 40:60 urban:rural. By estimates cited by a government economic advisor, the ratio has flipped. Cities are the engines of growth. Efficiency gains in transport, improved sanitation and planned urban buildout will result in multiplier effects across several growth vectors. Faster transport results in fuel savings and a lower import bill. Greener, cleaner cities cut pollution, improve public health and reduce healthcare costs. Well-planned cities retain talent, which the country is currently bleeding. In fact, world class infrastructure will incentivize the repatriation of top talent, an important factor in boosting R&D capabilities.
Given the government appears cash strapped by wealth redistribution programs, there is a hard limit on defense budget hikes. Constrained by a risk averse, unimaginative bureaucracy, the chances of a R&D revolution appear slim. Since politicians and bureaucrats lack interest in urban governance and workers lack experience, civic issues may remain unaddressed. Misgovernance enables corruption without which nobody along the chain can profit.
XXXXXX engagements
