According to Rajeev Chandrasekhar, minister of state for electronics and IT, India is well situated to become a significant participant in the manufacturing of electronics and semiconductor products as part of the China-Plus-One diversification strategy. China-Plus-One commonly referred to as Plus One, is a business strategy to diversify operations outside of China rather than making just Chinese investments. It began to acquire popularity in 2018 and rose to notoriety following the Covid epidemic. Chandrasekhar stated that “people all over the world are unwilling to depend on China as the only source.”
“China-Plus-One diversification is under process,” he continued. Given the last 5- 6 years of efforts undertaken by the nation to establish itself as a prominent player in these global value chains, India is in a strong position. India has a great chance because the electronics and semiconductor business is worth $1.5 trillion. But China controls roughly 75% of it and has ruled the market for 20 years. The goal of the world is to become less dependent. India is in a strong position to participate in this, according to Chandrasekhar.
He claimed that India’s intentions to be a significant player in the electronics value chain are directly related to its strategy as a semiconductor nation. For instance, India has received 66% of all FDI in the last three years for the manufacturing of electronics. Chandrasekhar continued by saying that an increasing number of nations and businesses view India as a reliable partner for the development and manufacture of electronics products. According to Chandrasekhar, over 92% of all mobile phones used in the nation in 2014 were imported, while over 97% are now created in India. He said that in 2014, the nation exported nothing related to the production of electronics. The nation currently exports machinery worth Rs 70,000 crore.
India’s electronics market is now valued at $75 billion, up from $10 billion in 2014. By 2025 or 2026, it is intended to be worth $300 billion, which would represent an increase in electronics manufacturing of roughly 26 times in ten years. Additionally, there is more need for semiconductors due to the rapid post-Covid digitalization of the automotive, mobility, and computing industries. According to Chandrasekhar, the Center will invest $30 billion in semiconductors and electronics. Of this, $20 billion would be allocated to the production and design of electronics, and $10 billion to the production, research, and design of semiconductors. The investment will aid in developing the nation’s manufacturing, packaging, assurance, design, research, and talent capacities. Chandrasekhar stated, “We do not aspire to be like Taiwan concentrated only on manufacturing. We believe that India has opportunities in manufacturing, packaging, design, and innovation”, he continued.
The Digital India Corporation’s India Semiconductor Mission (ISM), a specialized business unit with the mission of fostering the development of the nation’s semiconductor and electronics manufacturing sector, is currently reviewing business proposals for the establishment of fabs and chip manufacturing facilities that have been submitted by various investors.