Prime Minister Narendra Modi’s visit to the US and his meeting with the leaders of the US industry sends a strong message that India is open for business.
In the last 1 year or so, the government of India has ushered several reforms in the industry—it started the PLI scheme to incentivise the Made in India programme, reduced corporate tax to 25 %, and generally made it easier to do business in India. But the message that India is open for business needed to go out to the world.
The Prime Minister has also realized that India is vulnerable in certain areas, especially in the wake of the border skirmish with China. And these are areas of high technology—semiconductors, drone and defence technology among other things.
Today, India has the largest number of chip designers and testers in Bengaluru but it does not have a world-class chip manufacturing facility. The worldwide shortage of semiconductor chips is exposing the weak links in the Indian industrial scene and it is important for India to get this technology as it becomes a Global Digital Power on the back of its innovative startups.