Experts suggest that in order for India to reach developed status by 2047, the country’s 25-year plan should prioritize bolstering its current infrastructure for the production of electronics and semiconductors.
India has wanted to lead the semiconductor sector for many years. However, hardly much was accomplished over the previous 70 years as a result of lost chances and a lack of concentration.
Under Prime Minister Narendra Modi’s second term, the administration made a concerted effort to realize this objective, especially in the wake of the Covid-19 outbreak. A Rs 76,000 crore semiconductor and display program was authorized by the government in December 2021.
Using the proper strategy this time, even the proposals from large corporations were turned down since they lacked a technical partner because the process of manufacturing chips is far more complex than that of assembling devices. The industry anticipates an acceleration of India’s semiconductor growth, given that the results of the Lok Sabha poll, which were released on June 4, indicate that Prime Minister Modi will begin a third term in office.
It is quite clear from the general elections in 2024 that Narendra Modi will head the NDA administration once again. The electronics and semiconductor industries, which will constitute the technological and economic backbone of a $30 trillion economy, would benefit greatly from the emphasis on establishing the framework for Viksit Bharat-2047, according to Satya Gupta, President of the VLSI Society.
“The electronics and semiconductors sector has huge potential to create 10 crore direct and indirect jobs by 2047, with $2 trillion in domestic consumption and $1 trillion in exports, contributing $3 trillion, or 10%, to the economy,” he continues. This industry is consistently cited by all leaders—including the prime minister—as being essential to attaining Viksit Bharat’s strategic and economic objectives. When asked in a recent interview about the two most important technologies for India’s future, External Affairs Minister S. Jaishankar also highlighted semiconductors and space.
Industry analysts believe that in order for India to become a developed country by 2047, the next 25 years of strategy should be devoted to bolstering the country’s current infrastructure for the production of electronics and semiconductors, as well as to establishing India as a hub for these products.
Since the policies have been carefully chosen and put into place for the current situation, the industry anticipates that government support and enabling measures will continue. New approvals for semiconductor fabrication and ATMPs with a variety of technologies are also anticipated, as well as additional value creation in component manufacture with an emphasis on electronics and a “Product Centric” approach.
According to Anurag Awasthi, vice president of the India Electronics & Semiconductor Association, “the convergence of the three vectors of manufacturing, supply chain aspects, and responsive logistics to make Bharat, a semiconductor nation and an electronics hub of the future will be a reality, much sooner than expected.” According to Prabhu Ram, Head of Industry Intelligence Group at CMR, “the government should focus on attracting upstream players to bolster the domestic electronics manufacturing value chain,” given the industry’s continued optimism about India’s policy momentum, particularly with regard to electronics manufacturing and the promotion of emerging technologies. This will boost the nation’s competitiveness by greatly strengthening the electronics manufacturing sector.
According to sources, since the Modi government is expected to be re-elected, there is a chance that the India Semiconductor Mission would get legitimate offers for semiconductor fabs. Building semiconductor factories takes a long time and substantial financial outlays; it usually takes seven to ten years to break even. Furthermore, the criticism of the semiconductor scheme by former central bank governor Raghuram Rajan, who implied that India’s goal of becoming a semiconductor manufacturing nation might not be wise, had caused some in the international community to doubt India’s recent leadership transition.