GS3 – Economy
Context
Prime Minister Narendra Modi has highlighted India’s ambition to secure a sizeable portion of the $1 trillion global semiconductor market, with the government promising faster approvals and substantial investments.
Key Highlights
- India targets a significant share in the rapidly growing global semiconductor market.
- 10 semiconductor projects have already been cleared, with a total investment of $18 billion (₹1.5 lakh crore).
- The government is accelerating project clearances to boost manufacturing.
- India’s GDP growth in Q1 of FY2025 stood at 7.8%, underscoring resilience amidst global economic challenges.
Major aspects
- Strategic Importance: Semiconductors are viewed as the “new oil” of the 21st century, powering modern economies and critical technologies.
- Policy Support: A National Single Window System is being implemented to streamline approvals and facilitate quick project execution.
- India Semiconductor Mission (ISM): Currently underway, with future phases planned to strengthen the domestic semiconductor ecosystem.
- Economic Resilience: India’s robust GDP growth despite global uncertainty reflects strong domestic demand and emerging opportunities.
- Long-term Vision: The government aims to position India as a trusted hub for semiconductor design, fabrication, and manufacturing, ensuring technological self-reliance.