‘We are rolling out red carpet… India offers abundant opportunities’
INDIA IS “rolling out the red carpet” for the semiconductor industry, Prime Minister Narendra Modi said Friday as he pitched the country as a viable chip-making hub to global investors. He said today the world needs a “trusted partner” for its supply chains and there could be no better option than India.
“Earlier, people were questioning our aim to make chips and were asking ‘why invest (in India)’. Now, the question has changed to ‘why not invest’,” the Prime Minister said, addressing the inaugural session of Semicon India 2023, which is being attended by industry executives from across the world.
“Whoever moves fast in this will get the first mover’s advantage… we are rolling out the red carpet for them,” he said.
“In 21st century India, there are abundant opportunities. India’s democracy, demography, dividend, will double, triple your business,” Modi told the gathering, which included heads of top chip-making companies such as Micron Technology, Foxconn and Vedanta Group.
The world is recovering from the side-effects of the Covid-19 pandemic and the Russia-Ukraine war, the Prime Minister said, adding that it is not just India that needs chips, but the world, which needs a “trusted partner” for supply chains.
“All of us have seen the global pandemic and the impact of the Russia-Ukraine war. India also understands that semiconductors are not only our need, but the world needs a trusted, reliable, cheap supply chain. Who can be a better trusted partner than the world’s largest democracy… Today, the world’s investors believe in India, because of the stable, responsible and reform-oriented government,” he said.
Pointing out that there is “exponential growth” in the digital and electronics sector in the country, Modi said India’s growing middle class will drive the demand for digital products. “Today, India is one of those locations in the world where extreme poverty is fast disappearing. It is also the country where the neo-middle class is rising fast… The increasing neo-middle class in India is a power house of Indian aspirations,” he said.
Cheap data, quality digital infrastructure and seamless power supply has led to rise in consumers for digital products, he said while emphasising the increasing use of mobile phones and Internet in the country.
“In 2014, India’s electronic production was less than USD 30 billion. Today, it has crossed USD 100 billion. In the last two years, the electronic exports have doubled. Exports of mobile phones made in India have also doubled,” he said. “Before 2014, there were only two mobile manufacturing units in India. Today, there are more than 200 units. In 2014, there were 6 crore broadband users. Today this figure has increased to 80 crore. Similarly, the number of Internet connections in 2014 was 25 crore. This has risen to more than 85 crore.”
“These figures not just depict the success of India, but each of these figures is an indicator for increased business for your (semiconductor) industry,” Modi said.
The Prime Minister said that the semiconductor industry trusts India due to its “massive talent pool”, adding that the country will have a talent pool of more than 100,000 chip design engineers by 2028. He said that India also had fast-paced infrastructure growth, low corporate tax structure and massive talent pool needed for the semiconductor industry.
“The positive impact of policy reforms happening in India will touch the semiconductor industry,” he said, adding that a 50 per cent financial assistance was also given to semiconductor units in the country.
He emphasised that India “understands its responsibilities” very well and is working with countries to create a comprehensive roadmap for global cooperation in electronics. “We understand your expectations around raw materials, trained manpower, and machinery and that is why we are excited to work with all of you. Every sector where we have worked together with private companies has seen big success, be it the space or geospatial sector,” he said.
https://indianexpress.com/article/india/india-will-be-your-trusted-global-partner-pm-promises-semiconductor-makers-8865774/lite/
