Neo-Colonialism and the New Tech Wars: A Call for Indian Self-Reliance

Thiruvananthapuram: The ongoing trade wars between the United States and developing nations represent a modern reincarnation of colonial-era economic tactics, aimed at preventing technological advancement in the Global South, says Prabir Purkayastha, President Free Software Movement India (FSMI) and Editor in Chief - NewsClick.in at the Liberate Festival organized by Chintha Publishers.

In a talk that covered both history and contemporary technology policy, Prabir explained

why countries like India must pursue strategic self-reliance in technology to break free from neo-colonial economic structures.

Prabir challenged the conventional narrative of Western technological superiority. He argued that the common narrative—that British technological superiority enabled it to out-compete Indian manufacturing—is false. Instead, Britain used political force to subjugate India and imposed protectionist measures, such as tariffs as high as 900% on Indian textile imports, to pauperise Indian textile manufacturers. This protectionism, enforced politically, stifled Indian competition and enriched Britain, which then reinvested this capital to further develop its technology.

“This reality is very different from what we are taught,” he said. “It was not machine power alone that made British textiles cheaper than India’s.”

Prabir presented detailed historical evidence showing how British colonial powers imposed tariffs amounting to 10 to 11 times the value of the goods, effectively stopping Indian cloth imports into Britain.

This combination of political domination and economic protectionism allowed British industry to develop behind trade barriers, contradicting the usual story of superior innovation and science.

“Today's trade wars follow the same pattern,” he added. The US has systematically undermined the World Trade Organisation (WTO) by blocking appointments to its appellate body for the past five years, effectively rendering the organisation's dispute resolution mechanism infructuous.

“The US uses its position as holder of the global reserve currency and its military power—with a budget equal to the combined military budgets of the nine countries—to exert economic pressure.”

Prabir highlighted China’s approach as a useful example for developing countries. By gaining control over entire supply chains in key technologies, China has built strong leverage in international negotiations.

"China has built the entire supply chain for electric vehicles, from batteries to electric motors to anything you name it," he pointed out. More significantly, China has achieved "99.9% control" over the production of high-efficiency rare-earth electromagnets used in EV motors, wind turbines, and smartphone cameras.

This dominance in specific critical technologies gives China a "chip in the game"—something to offer in trade negotiations rather than simply being a technology importer.

Prabir was particularly critical of India's post-1990s abandonment of self-reliance. "We are on a weaker wicket because since the 1990s, we have officially given up on self-reliance," he argued, noting the flawed belief that "technology, like any other commodity, can be bought from the market."

He emphasised that self-reliance does not mean complete autarky but rather developing "unique advantages" in specific technological areas. "You must be able to also develop technologies which then you can exchange for other technologies," he explained.

He identified renewable energy as a particularly promising sector. "The cost of renewables today is lower than the cost of fossil fuels, both in terms of putting plants, capital costs, as well as running costs," he said, noting that China has driven down costs for solar silicon wafers and built advanced ultra-high voltage grid infrastructure.

Prabir emphasised the need for a fundamental shift in India's approach to technology development, criticising the reliance on private capital to drive innovation. "Capitalists do not develop technology. They only buy technology for what they need," he argued, advocating for a more active state role in technological development.

He outlined what a comprehensive self-reliance strategy would entail for renewable energy: mastering the production of pure silicon, manufacturing solar cells and panels, developing battery storage technology, and building robust grid systems.

The address concluded with a powerful reminder that technology and knowledge have never been apolitical commodities but are instead "integral to the politics of the world." For India to achieve true sovereignty, he argued, it must strategically develop its own technological capabilities to avoid perpetual subservience in the global economic order.

The Liberate Festival, organised by Chintha Publishers, continues through the weekend with sessions on literature, politics, science and cultural resistance.