India has also been paying closer attention to the need to boost its budding semiconductor industry with production-linked incentives. The construction of a chip manufacturing facility in Gujarat was a joint project between mining giant Vedanta and Foxconn, the Taiwanese business that assembles Apple’s iPhones.
Source: The Hindu Business Line
India’s ambition of playing a bigger part in the electronics supply chain is helped by the memorandum of understanding with the US on information sharing on semiconductor regulation, commercial opportunities, and innovation. It would benefit both nations to take advantage of their complementing assets.
The Biden administration has taken the initiative to pursue a change in strategy to reduce the country’s disproportionate reliance on China and Taiwan for essential technology components. Its strategy of friendshoring, or moving the production of some essential components to friendly nations, may include enhancing cooperation with India in advanced weaponry, supercomputing, semiconductors, and other high-tech industries.
Source: CNBC- TV 18
It’s a chance that shouldn’t be passed up. The main goal for New Delhi must be to drive growth through teamwork and smart collaborations. That would include requesting in the future that the US relax its restrictions on the transfer of cutting-edge technology and defence-related technologies.
India would be wary of warnings to exercise prudence and avoid joining trade blocs that have restrictive economic policies. These concerns might not be warranted because many Indo-US technological alliances would depend only on new business relationships. Increasing supply chain resilience, strengthening energy security, and lowering overall greenhouse gas emissions are all objectives shared by the India-US Commercial Dialogue. Investing in cutting-edge technologies is encouraged.
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Chip pact with US: Boost to larger role for India in global supply chain
By tirupatinews
