According to S Krishnan, Secretary of MeitY, Indian companies have reported difficulties in sourcing critical capital goods and skilled manpower, potentially due to Chinese government policies. While there has been no formal announcement from China, the feedback from Indian manufacturers indicates a growing concern about these constraints, Krishnan told CNBC-TV18.
These restrictions highlight the need for India to strengthen its domestic manufacturing capabilities and reduce reliance on external sources, Krishnan said, adding that the government is aware of these challenges and is working to ensure that Indian companies can navigate these hurdles effectively. This includes fostering a robust semiconductor ecosystem, which is critical for reducing dependency on imports and building self-reliance in key areas of electronics manufacturing.
India’s semiconductor initiatives have already made significant progress, with four fabs approved and plans for more in the pipeline. The government is also focusing on developing display fabs and compound semiconductors, which are essential for meeting the growing demand for advanced electronics. Prime Minister Narendra Modi has assured continued support for the semiconductor sector, and MeitY is working on a follow-up plan to scale up these efforts further.
In addition to addressing trade challenges, the ministry is also focusing on enhancing India’s competitiveness in the global market. This includes leveraging the country’s strengths in artificial intelligence (AI) and data centre infrastructure. The AI mission has received strong interest from the private sector, with bids for over 20,000 GPUs, demonstrating the potential for India to become a global hub for AI innovation.
MeitY aims to position India as a global leader in electronics and semiconductors by addressing trade restrictions and fostering domestic capabilities. These efforts are critical for ensuring the long-term competitiveness of Indian manufacturers and reducing the country’s reliance on external sources.
Also read: India gets bids for twice its initial target of GPUs, can export excess data centre capacity
