Model Question and Answers for APSC | Discuss India’s potential to be an attractive investment destination for semiconductor technologies. What is the government doing to harness this potential?
Ans: India is headed for a robust economy and the country’s consumption of semiconductors is expected to cross $110 billion by 2030 said PM at the inaugural session of the Semicon India-2022 conference. India’s own consumption of semiconductors is expected to cross $80 billion by 2026 and $110 billion by 2030.
Potential to be an attractive investment destination for semiconductor technologies
1. We are building digital infrastructure to connect over 1.3 billion Indians and UPI is the world’s most efficient payment infrastructure today.
2. Efforts are underway to try and connect 600,000 villages with broadband and also invest in developing capabilities in 5G, clean energy technologies and the internet of things (IoT).
3. India is headed for robust economic growth with the world’s fastest-growing startup ecosystem.
4. India has undertaken wide-ranging reforms for improving the ease of doing business in the country. Such as the abolition of more than 25,000 compliances, a push towards auto-renewal of licenses, transparency and speed in regulatory framework via digitisation, and one of the most favourable taxation structures in the world.
5. The country is 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 Research and Development centres in our country.
6. It (semiconductor industry) is huge and so the government is willing to invest ₹70,000 crores to get this started.
Government actions to promote the semiconductor industry:
1. The Centre’s Semicon India Programme, set up to build the semiconductor and display ecosystem in the country, has generated interest among companies.
2. India approved a semiconductor policy to incentivise a domestic ecosystem for semiconductors and display manufacturing — in line with the Centres ambition to create a $300 billion electronics industry in six years.