India should become a key partner in global semiconductor supply chains: Modi
Prime Minister Narendra Modi addressing the inaugural session of the SemiconIndia Conference in Bengaluru, through video conferencing, in New Delhi on April 29, 2022.

India should become a key partner in global semiconductor supply chains: Modi

New Delhi, April 29, 2022

Underlining the critical role of semiconductors in today’s world, Prime Minister Narendra Modi today said the collective aim of the government and all other stakeholders was to establish India as one of the key partners in global semiconductor supply chains.

Inaugurating the SemiconIndia Conference 2022 via video conferencing, the Prime Minister said, “We want to work in this direction based on the principle of high-tech, high quality and high reliability.

“We have an exceptional semiconductor design talent pool which makes up to 20% of the world's semiconductor design engineers. India's own consumption of semiconductors is expected to cross 80 billion dollars by 2026 and 110 billion dollars by 2030,” he added.

The Prime Minister underlined six reasons for India being an attractive investment destination for semiconductor technologies.

“First, we are building the digital infrastructure to connect over 1.3 billion Indians. You have all heard of India's financial inclusion, banking and digital payment revolution. UPI is the world's most efficient payment infrastructure today. We are using digital technology to transform lives in all sectors of governance from health and welfare to inclusion and empowerment. We are one of the largest consumers of data per capita. And we continue to grow.

“Second, we are paving the way for India to lead the next technology revolution. We are on our way to connecting six hundred thousand villages with broadband. We are investing in developing capacities in 5G, IoT and clean energy technologies. We are working to unleash the next wave of innovation in data, AI and other technologies.

“Third, India is headed for robust economic growth. We have the world's fastest-growing Startup Ecosystem. New unicorns are coming up every few weeks. India's own consumption of semiconductors is expected to cross 80 billion dollars by 2026 and 110 billion dollars by 2030.

“Fourth, we have undertaken wide-ranging reforms for improving ease of doing business in India. Last year, we abolished more than 25,000 compliances and gave a push towards auto-renewal of licenses. Similarly, digitization is also bringing speed and transparency to the regulatory framework. Today, we have one of the most favourable taxation structures in the world.

“Fifth, we are investing heavily in skilling and training young Indians for the needs of the 21st century. We have an exceptional semiconductor design talent pool which makes up to 20% of the world's semiconductor design engineers. Almost all of the top 25 semiconductor design companies have their design or R&D centres in our country.

“And sixth, we have undertaken several measures towards transforming the Indian manufacturing sector. At a time when humanity was fighting a once-in-a-century pandemic, India was not only improving the health of our people but also the health of our economy,” he said.

Modi talked about ''Production Linked Incentives'' schemes that offer incentives of over 26 dillion dollars in 14 key sectors. Over the next 5 years, the electronics manufacturing sector is expected to see record growth, he said.

He said the recently announced SemiconIndia programme with a total outlay of over 10 billion dollars aims to provide financial support to companies investing in semiconductors, display manufacturing and design ecosystems.

The Prime Minister acknowledged the need for government support and assured the audience of the best efforts to provide a conducive environment for business. “While the industry works hard, the government must work even harder.”

He asked the industry to seize the emerging opportunity from the new world order. “We have worked hard over the last few years to create an environment that encourages growth. India has an appetite for tech and risk-taking. We have put the odds in your favour as far as possible through a supportive policy environment. We have shown that India means business,” he said.

NNN

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