The computer chip industry in India is currently small, however, Prime Minister Narendra Modi has bold ambitions to propel the country into a major player within the sector in the coming years. As part of India’s objective to emerge as a top global economy, PM Modi has articulated a goal for India to rank among the five largest computer chip manufacturers in the world by 2029, despite starting from a nearly non-existent base. Given the rapid advancement of artificial intelligence and prevailing global geopolitical tensions, which have spurred a frenzied race to develop domestic chip manufacturing capabilities, the crucial question arises – can India realistically compete in this highly competitive arena?
Rakesh Kumar, from the University of Illinois Urbana-Champaign, has identified two fundamental factors to assess India’s potential in establishing a robust computer chip industry.
One crucial consideration is the substantial investments and rapid technological advancements required to build the necessary infrastructure and expertise. The establishment of a successful computer chip industry demands significant financial support and cutting-edge engineering capabilities, as well as access to a highly skilled workforce. Such substantial investment will need to stem from both the public and private sectors, given the capital-intensive nature of the venture and the substantial risks involved.
Another vital aspect to consider is the competitive landscape and the complexities arising from geopolitical factors influencing the computer chip industry. With increasing global demand for computer chips and escalating trade tensions between major players in the chip manufacturing sector, India would need to navigate a highly competitive and politically charged environment. This poses a considerable challenge as India strives to emerge as a strong contender in this field.
The pathway for India to build a thriving computer chip industry is undeniably challenging, yet not insurmountable. The Indian government has already taken steps to attract investment and promote domestic chip manufacturing through initiatives such as the Production Linked Incentive (PLI) scheme, which provides financial incentives to companies for manufacturing electronic components and semiconductors in India. Additionally, there is a growing pool of talent in the country’s technology sector, which could be harnessed to drive innovations in chip manufacturing.
Furthermore, India’s large and growing consumer market for electronic devices presents a significant opportunity for the growth of a domestic chip industry. The increasing demand for smartphones, laptops, and other electronic gadgets provides an attractive market for locally-produced computer chips, potentially fuelling the growth of the industry.
It is imperative for India to strategically collaborate with global industry leaders and leverage technological partnerships to gain access to state-of-the-art chip manufacturing technologies. By fostering strong alliances and knowledge-sharing networks, India can expedite its progress towards establishing itself as a notable player in the global computer chip industry.
In conclusion, India’s aspiration to build a flourishing computer chip industry from scratch is undoubtedly ambitious. However, with strategic investments, conducive government policies, and strategic collaborations, India has the potential to carve out a significant presence in the global chip manufacturing landscape. While the challenges are formidable, the rewards of establishing a strong indigenous computer chip industry are equally promising for India’s economic and technological advancement.