India’s Economic Growth, Private Enterprises and National Security are Interlocked: Here’s Why? Samvada World

National power can only be exhibited when there is an environment that allows innovation by private enterprises in all sectors supported by the government.
All actions related to the progress of India and the Indian economy must be under the umbrella of national security.
AI and quantum technology are the most important breakthroughs since the breaking of the Atom and the Internet.
It is a very tough and unforgiving world which is why Indian companies must be protected by our government and it must be under the national security umbrella.

Private enterprises play a pivotal role in enhancing a nation’s power and stature within the global geopolitical landscape^[1]. Their contributions span economic, technological, social, and diplomatic dimensions, shaping the nation’s influence and resilience. That is why the attack on Gautam Adani and his group of companies has to be a cause for serious concern and economic growth has to be now viewed through the prism of national security and it must not be an afterthought.

If we study history, nations that progressed always supported private enterprises to drive economic growth. Private enterprises are responsible for creating jobs, generating wealth, and more importantly fostering innovation. A robust economy strengthens a nation’s global bargaining power, enabling it to fund infrastructure, defence, and diplomacy. Companies operating in industries like energy, finance, and manufacturing often become key assets in international trade negotiations.

All actions related to the progress of India the Indian economy must be under the umbrella of national security. Economic growth and national security are deeply intertwined because a strong economy provides the resources necessary to maintain a robust defence infrastructure, ensure societal stability, and promote technological advancements. Simultaneously, national security protects the environment in which economic activities can flourish. Here’s why this relationship matters and why governments must support private enterprises while allowing them to grow.

Economic prosperity generates tax revenue, enabling governments to invest in military capabilities, cybersecurity, and law enforcement. For example, nations with strong economies, like the U.S. and China, sustain large defence budgets, ensuring global influence and domestic stability.

At present, only nine Indian companies are listed in the Fortune 500 companies and sadly only 2 companies are private and a company like the Adani Group has a great chance to be on that list. National power can only be exhibited when there is an environment of allows innovation by private enterprises in all sectors supported by the government.

India has a huge advantage in being a leader in the fields of artificial intelligence, biotechnology, pharmaceuticals, renewable energy, and aerospace and can position itself as a leader in cutting-edge technologies. For example, companies like SpaceX and Tesla have boosted U.S. influence in space exploration and sustainable energy. Such advancements are not just commercial but also bolster national security and international prestige.

Diplomacy through Corporate Soft Power and Enhancing Strategic Self-Reliance

Multinational corporations (MNCs) act as unofficial ambassadors for their home countries. When private enterprises succeed globally, they enhance the perception of their nation’s capabilities and values. Brands like Apple, Toyota, and Samsung are synonymous with their countries, contributing to soft power. Private enterprises reduce reliance on imports by developing domestic industries. This is crucial in strategic sectors like defence, pharmaceuticals, and semiconductor manufacturing, ensuring resilience against global supply chain disruptions or geopolitical tensions.

In his book Soft Power, Joseph Nye writes that in international politics), soft power is the ability to co-opt rather than coerce as it can shape the preferences of others through appeal and attraction^[2]. Soft power is non-coercive, using culture, political values, and foreign policies to enact change and it is propaganda but not propaganda.

Private companies expand a nation’s reach through foreign direct investments (FDI) and trade relationships. By establishing operations in other countries, they create interdependencies that can lead to stronger diplomatic ties and reduce the likelihood of conflicts.

Supporting National Security and Enhance India’s Global Leadership

Enterprises in sectors like defence, cybersecurity, and critical infrastructure development like building ports, railroads and turnkey energy projects directly contribute to national security. Public-private partnerships can enhance a nation’s ability to respond to emerging threats, from cyberattacks to pandemics.

As the world moves toward sustainability, private enterprises that lead in green technologies help their countries become leaders in global environmental initiatives. Nations with strong private sector capabilities in renewable energy or climate tech can shape international policies and standards and India is on the cusp.

Expanding Cultural Influence

What a lot of people miss as they are consumed by the glamour of Hollywood is that this industry has given the United States more soft power than all the weapons in her arsenal. Creative industries—such as entertainment, fashion, and technology—led by private enterprises shape global culture. Hollywood and Silicon Valley have been instrumental in projecting American cultural and technological dominance for decades^[3].

AI and Quantum Technology

Artificial Intelligence (AI) and Quantum Technologies right now are at the heart of the ongoing global technological race, and India’s ability to harness them will determine its future economic strength and strategic autonomy^[4]. AI-driven automation in manufacturing, agriculture, and services can significantly improve efficiency and output. India’s startup ecosystem is thriving in AI applications (healthcare, fintech, and logistics), attracting global investments. AI-powered data analytics is reshaping governance, finance, and consumer industries. AI is creating high-value jobs in sectors like IT, biotech, and space technologies.

Quantum-powered simulations can revolutionize pharmaceuticals and high-tech materials and India has bridged this divide during the post-Covid19 pandemic. Quantum computing can enhance risk analysis, fraud detection, and economic forecasting. Quantum Cryptography ensures ultra-secure transactions and data privacy.

National Security & Strategic Interests

AI in Defense & Cybersecurity is going to be the next force multiplier on the battlefield and the proof is the ongoing Russia-Ukraine war. Autonomous Weapons & Surveillance such as AI-powered drones, robotics, and facial recognition are reshaping modern warfare. Also, AI helps in real-time cyber threat analysis and prevention. In a dynamic situation AI in Military Logistics & Strategy will be most useful in AI-driven decision-making tools to improve strategic operations and battlefield efficiency.

Quantum Cryptography for Defense & Space is a must to ensure uninterrupted and uncompromised strategic communications for our military networks that can be protected using quantum encryption. Quantum Radar & Sensing can detect stealth aircraft and submarines, countering adversary capabilities. Quantum AI in Intelligence will be a powerful tool for espionage and allow intelligence agencies to track cyber threats and terrorist networks.

It is very encouraging news that India has launched a ₹6,000 crore mission to develop quantum computers, communication, and sensing^[5]. But this is a drop in the ocean as China and the US are out spending a hundred times more in R&D. The government needs to invest more and this could be a great platform of private–government synergy.

Conclusion

The attack that has been carried out by China and the United States to undermine the projects headed by the Adani Group has to be seen as a direct challenge to India’s national security needs. The US has a history of taking on governments and enforcing regime change to favour one of its companies. China heavily supports its enterprises like Huawei and Tencent, integrating them into national strategic goals.

India currently has 67 unicorns, according to the Hurun Global Unicorn Index 2024^[6]. This ranks the country third globally, following the United States with 703 unicorns and China with 340. The list includes startups valued at over $1 billion across diverse sectors like fintech, e-commerce, healthtech, and blockchain. Notable examples are Razorpay, PhonePe, and Polygon. If India has to grow and prosper, supporting private enterprise must also be part of its policy on national security.

AI and quantum technology are the most important breakthroughs since the breaking of the Atom and the Internet. India simply cannot be holding its hat as no nation that has this technology will share it. We do not want to be in the same situation where we had to depend on the US, Soviet Union and some other nations to get our weather reports. Just as we are one of the dominant forces in space tech, we must not lag behind AI and quantum technology or we could be crippled.

It is a very tough and unforgiving world which is why Indian companies must be protected by our government and it must be under the national security umbrella. That is why government support for its private enterprise is essential for sustained national strength that allows Indian companies to compete globally for India.

References:

Balaji Subramanian

_{Balaji is a freelance writer with an MA in History and Political science and has published articles on defence and strategic affairs and book reviews. He tweets @LaxmanShriram78. Views expressed are the author’s own.}

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