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Rahul Gandhi Criticizes Make in India and Advocates for AI-Driven Economic Reforms in India

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KKN Gurugram Desk | During a key speech in the Lok Sabha on February 3, 2025, Rahul Gandhi, the Leader of Opposition (LoP) in the Lok Sabha, sharply criticized the government’s Make in India initiative and the country’s overall manufacturing sector. Gandhi emphasized that the failure to strengthen India’s industrial base has left the nation vulnerable to external threats, particularly from China. In his speech, Gandhi also called for a greater focus on AI-driven technological advancements and an inclusive approach to address the country’s growing unemployment crisis and socio-economic disparities.

India’s Manufacturing Weakness and China’s Aggression

Rahul Gandhi opened his speech by highlighting a significant issue: China’s growing aggression along the Indian border. He attributed this rise in Chinese assertiveness to India’s failure to establish a robust industrial and manufacturing system. Gandhi pointed out that China has a much stronger and larger industrial system, which has emboldened it to make aggressive moves in Indian territories. He argued that the Make in India initiative, which was launched with the promise of boosting India’s manufacturing sector, has failed to deliver the expected results.

“China has the guts to come inside this country because it has a far stronger, far bigger industrial system,” Gandhi stated. He further questioned Prime Minister Narendra Modi’s assertion that India has not lost any territory to China, pointing to the contradictions between the government’s claims and the reports from military officials. According to Gandhi, India’s Chief of Army Staff had stated that Chinese forces were indeed present in parts of Indian territory, a claim that contradicted the official stance.

The Importance of Strengthening India’s Production System

As the central message of his address, Rahul Gandhi stressed the need to focus entirely on production to build a self-reliant economy. He warned that without increasing domestic production, India would continue to face huge deficits, rising inequality, and significant social challenges driven by unemployment.

He pointed to the decline in India’s manufacturing share of the Gross Domestic Product (GDP), which fell from 15.3% in 2014 to 12.6% today, the lowest it has been in 60 years. Gandhi did not just blame the Prime Minister, acknowledging that the Make in India initiative had “conceptually good” intentions but had ultimately failed to provide the desired results.

Gandhi mentioned that despite the efforts of leading companies like Mahindra, Bajaj, and Tata, India’s production capacity has remained weak, and the country has failed to organize its production systems. He argued that, as a result, India has handed over the organization of production to China, which is now benefiting from the gap in India’s industrial capacity.

A Vision for AI and Inclusive Growth

Gandhi also put forward a vision for the future of India, emphasizing the need to harness Artificial Intelligence (AI) to revolutionize both production and social participation. He explained that AI could be used to improve social inclusion and economic participation by Dalits, OBCs (Other Backward Classes), and Adivasis. Gandhi suggested that data from a national caste census, if integrated with AI tools, could transform governance and wealth distribution, providing equal opportunities for marginalized communities.

In his remarks, he made a pointed comparison between India and China, stating that China has been working on advanced technologies, such as batteries, robots, and motors, for over a decade, while India is still lagging behind. According to Gandhi, AI is a tool that can close this gap and help India reclaim its industrial dominance by competing with China in key areas like solar panels, electric motors, and batteries.

Strengthening India’s Ties with the United States

Gandhi suggested that India should leverage its strategic relationship with the United States to build a stronger industrial base. He argued that India is as important to the US as the US is to India, given that the United States cannot build its industrial system without India. Gandhi pointed out that India’s lower cost structure makes it a critical player in global manufacturing, and that the US would benefit from collaborating with India in production processes.

“If we had a production system and were working on these technologies, the American president would come here and invite our Prime Minister,” Gandhi said. He further mocked the government’s approach to diplomacy, claiming that instead of sending India’s External Affairs Minister multiple times to the US to secure a meeting, the focus should be on building a production system strong enough to attract the US president to India.

Caste Census and Electoral Reforms

In addition to addressing economic concerns, Gandhi also touched upon social issues such as the Caste Census and electoral reforms. He emphasized the importance of conducting a nationwide caste census, citing the results from Telangana, where a large portion of the population consisted of backward castes, tribals, and minorities. Gandhi argued that conducting a caste census and applying AI tools to the data could lead to a revolution in how wealth and power are distributed in India.

He called for greater participation of Dalits, OBCs, and Adivasis in the governance structures of India, arguing that they should have a more substantial role in the country’s institutions and the economy. He further emphasized that the AI-driven revolution could be a tool to challenge China’s dominance in emerging technologies, including renewable energy sectors like solar power and wind energy.

Concerns About Maharashtra Elections and Electoral Integrity

Another significant part of Rahul Gandhi’s speech focused on his concerns about the Maharashtra elections and the integrity of the electoral process. He raised suspicions that the voter lists for the Maharashtra Assembly and Lok Sabha elections had been manipulated, citing an increase of 70 lakh voters in the state during a short period. The Election Commission of India (EC) had previously denied these claims, explaining that the number of new electors had increased by approximately 40 lakh, with a large proportion of these being young voters.

Gandhi also criticized the current electoral system, accusing the BJP government of undermining the independence of the Election Commission by removing the Chief Justice from the committee that selects the Election Commissioner. This, according to Gandhi, has weakened the transparency and fairness of India’s election process.

Rahul Gandhi’s speech presented a scathing critique of India’s current economic and political trajectory, highlighting the failures of the Make in India initiative, the growing challenges of unemployment, and the need for social reforms. His call for a stronger industrial system, greater technological innovation, and an AI-driven approach to governance provides a vision for India’s future that is grounded in inclusive growth and economic self-reliance.

Gandhi’s remarks also pointed to the need for electoral reforms to ensure greater transparency and fairness in the democratic process. The ongoing debate in India about manufacturing, economic growth, and social justice will undoubtedly continue to shape the country’s political discourse as the nation

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