The Hindu | The shifting sands within global supply chains

Proposed U.S. rules on Chinese connected car tech and Israel’s pager attacks indicate the changing focus of global supply chains — from resilience to security

By Lokendra Sharma and Pranay Kotasthane

Read the full article here.

The Hindu | Perils of decentralisation with Chinese characteristics

Decentralisation, once celebrated as a reason for China’s economic miracle, seems to have now turned counter-productive

By Pranay Kotasthane & Manoj Kewalramani

Read the full article here.

The Print | India’s fiscal imbalance isn’t a North vs South problem. Here’s what lies at the ‘centre’ of it

India has a large vertical fiscal gap, which has been increasing. The reason is that while the Constitution assigns the most buoyant taxation powers to the Union, it allocates more spending responsibilities to the states.

By Pranay Kotasthane and Sarthak Pradhan

Read the full article here.

Indian Express | Agnipath 2.0: A solution for armed forces and applicants

The future of the Agnipath scheme is a pressing concern for the new government at the Centre. The narrative that this scheme dampened the NDA’s prospects gained momentum during the election campaign. The spokesperson of the JD(U), a key NDA partner, has publicly stated that the scheme upset some sections and needs to be modified. Despite these political rumblings, there is a noticeable lack of specific alternatives to address the original problems that led to the crafting of the Agnipath scheme. This article proposes an “inverse induction model” as a solution to make Agnipath 2.0 meet its operational, political, and fiscal objectives. Read the full article here.

Outlook | Dr. Jagdish Chandra Asthana Could Have Been a Good Policy Analyst

In Munnabhai MBBS (2003), the medical college dean, Dr. Jagdish Chandra Asthana (played by Boman Irani), cautions against feeling empathetic towards patients. Empathy, he reasons, can impair the doctor’s ability to provide the best treatment for the patient. In the world of public policy, the doctor is correct. If we’re keen to develop better policies, we must avoid empathy and replace it with compassion as a guide. Here’s why. Read the full article here.

Firstpost | How India is moving fast to becoming semiconductor ‘aatmanirbhar’

The India Semiconductor Mission’s (ISM) ambitious goal to establish a robust domestic chip design and manufacturing ecosystem is gradually achieving fruition. The Union government recently approved three semiconductor units, including India’s first fabrication plant by Tata Electronics Private Limited, in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corporation in Dholera, Gujarat. Read the full article here.

Takshashila Blog | The Imperative of Open-sourcing Chip Manufacturing Processes

The India Semiconductor Mission’s (ISM) ambitious goal to establish a robust domestic chip design and manufacturing ecosystem is gradually achieving fruition. The Union government recently approved three semiconductor units, including India’s first fabrication plant by Tata Electronics Private Limited, in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corporation in Dholera, Gujarat.

India’s presence in the chip design stage of the global value chain (GVC) is sizeable and well-established, playing host to global semiconductor design houses such as AMD and Qualcomm. There’s a slight glitch in the matrix, though: despite a large pool of skilled design engineers and a growing domestic market, India has struggled to establish a robust homegrown chip design and product ecosystem.

New Delhi has launched initiatives like the semiconductor Design-Linked Incentive (DLI) and Chips 2 Startup (C2S) schemes, which aim to provide select startups and universities with affordable access to Electronic Design Automation (EDA) software tools essential for designing all modern chips.

However, a key hurdle for startups and academia is the lack of standardised and affordable access to collaborative research facilities, and critical chip design toolkits inextricably linked to the fabrication stage of the supply chain that India is focused on: Process Development Toolkits (PDKs). Read the full article here.

Hindustan Times | A self-harming stance on digital trade tariffs

India was at loggerheads with the developed nations and China at the World Trade Organization’s (WTO’s) 13th Ministerial Conference (MC-13) in Abu Dhabi earlier this year. India’s resistance to extending the moratorium on tariffs for digital trade was one point of divergence. This stance is counterproductive, and likely to hurt India’s most promising sector. Read the full article here.

ASPI - The Strategist | A practical agenda for India-Australia semiconductor collaboration

With the global semiconductor supply chain under strain, India and Australia have a timely opportunity to strengthen their partnership in the critical sector. Both recognise the strategic importance of developing domestic semiconductor capabilities. As Quad members, they are also a part of the Quad Semiconductor Supply Chain Initiative, which seeks to ‘map capacity, identify vulnerabilities, and bolster supply-chain security for semiconductors and their vital components.’ Read the full article here.

Times of India | Why resource distribution is creating a North-South divide

Over the last few days, there have been calls to form an economic alliance of southern states for equal resource distribution. Chief ministers from states such as Karnataka, Kerala, and Tamil Nadu held demonstrations in New Delhi to express their discontent. The Karnataka chief minister claimed that the current system for distributing resources among states puts states like Karnataka at a disadvantage while favouring states in the North with uncontrolled population growth. While the states’ concerns are valid, this focus on the horizontal distribution of tax resources is misplaced. Instead, the states should advocate for an enlargement of the divisible pool by calling for a curtailment in Union cesses and surcharges. Here’s why: Read the full article here.

Times of India | Republic Day reminder: Let’s reclaim the right to economic freedom

Let’s get the basics out of the way — we celebrate the Republic because it prohibits any majority from running roughshod based on its numerical strength. The Constitution limits the power of governments and groups to protect the minority of One, i.e. every individual. The Republic grants fundamental rights to individuals to live, trade, work and protest peacefully. Yet, among these freedoms, the one that governments most readily and frequently trample upon — with little or no opposition—is the right to economic freedom. We can endlessly debate the current state of political or religious freedom and the decline of the freedom of expression, and that is partly the point — there is at least a debate. Read the full article here.

The Hindu | The need to overhaul a semiconductor scheme

The mid-term appraisal of the semiconductor Design-Linked Incentive (DLI) scheme is due soon. Since its announcement, the DLI scheme has approved only seven start-ups, markedly short of its target of supporting 100 over five years. This impact assessment, therefore, presents an opportunity for policymakers to appraise and revamp the scheme. India’s $10 billion Semicon India Program has had mixed results, at best. There are three goals of India’s semiconductor strategy. The first is to reduce dependence on semiconductor imports, particularly from China, and especially in strategic and emerging sectors, ranging from defence applications to Artificial Intelligence development. The second is to build supply chain resilience by integrating into the semiconductor global value chain (GVC). The third is to double down on India’s comparative advantage: India already plays host to the design houses of every major global semiconductor industry player and Indian chip design engineers are an indispensable part of the semiconductor GVC. Read the full article here.

Time of India | Pannun case: Time to reimagine spy agency for Information Age

A US district court indictment accusing an Indian official of ordering an assassination on American soil continues to remain in the news cycle. The Union government has constituted a high-level inquiry committee to look into the inputs shared by the US. There have been plenty of articles on its impact on India-US ties, and the usual partisan sniping as well. But there’s one underrated angle to this discussion: this fiasco opens the Overton window (a window of possibility) for India to reform its external intelligence agency. Read the full article here.

Scroll.in | A new book examines how India can set up new and world-class semiconductor facilities

India only has a few fabrication facilities owned and operated by the government for critical infrastructure needs in space and defence. Prior attempts to attract private investments in these fields have failed due to cost disadvantages and uncertainty of the investment climate. These challenges remain. Combining these barriers with the fact that nearly every major chip-producing country when the chips are down is aggressively trying to localise leading-edge fabrication facilities, India is on a weak wicket. Read the full article here.

CASI | Chandrayaan and Chips: Space Lessons for India’s Semiconductor Program?

From a technology policy lens, the success of the Chandrayaan-3 mission in 2023—which saw India become the fourth country to land a rover on the moon and the first to do so near the Lunar south pole—brings up a pertinent question: If largely government-run efforts could make India a bonafide space power, can some of those learnings help India become a semiconductor power? Geopolitical competition between the US and China, as well as a perceived overreliance on a seemingly vulnerable Taiwan for the vast majority of advanced chips, has made the semiconductor manufacturing sector the focus of intense industrial policy efforts over the last few years, after decades of it being the poster child of globalization. Read the full article here.

Nikkei Asia | Chipmaking subsidies are not the answer to supply security worries

The U.K. national semiconductor strategy, released in May, has been criticized for showing a lack of ambition or courage. The plan foresees government spending of 1 billion pounds ($1.2 billion). This has made some observers question the stance of the U.K. toward the chip sector in view of tens of billions of dollars in subsidies that the U.S., European Union, Japan, India and other governments are allocating to the industry. The U.K., though, is choosing a categorically different path from its peers, based on utilizing its comparative advantages. Read the full article here.

The Times of India | Laptop licence: Why are failed policies being revived again?

In the 1970s and 1980s, a large country undertook a “market reserve” policy. The idea was to restrict imports, protect the infant computer industry, and give it a chance to become competitive. But after nearly two decades of restrictions, the country was far from achieving its desired goal of becoming a major international player in computers. Smugglers prospered as they found ways to get around the trade barriers. The local players that benefited from a closed market were so inefficient that many vanished as soon as the winds of globalisation swept in the 1990s. That country is not India, but Brazil. Read the full article here.

The Hindu | Learning from the CHIPS Act of the U.S.

The United States’ Creating Helpful Incentives to Produce Semiconductors and Science Act of 2022 (CHIPS Act) completes one year as a law today (August 9). The Act authorises $52.7 billion over five years to boost American competitiveness, innovation and national security in semiconductors. While the jury is still out on the long-term effectiveness of the Act, what is important from an Indian perspective is to observe and learn from its implementation. As industrial policy has become a default policy of choice for nation-states, the Act provides a clear window into the capabilities and structures needed to execute such policies. Read the full article here.

Hindustan Times | In the chip war, US has the edge over China

As a countermeasure to a series of US-led tech restrictions, China’s ministry of commerce and general administration of customs recently announced export controls on industrial products and materials containing two critical elements — Gallium (Ga) and Germanium (Ge). The export of these elements will now be subject to governmental clearance. The ministry justified the restriction on national security grounds, owing to the elements’ dual-use nature. Read the full article here.

Centre on Asia and Globalisation | Confronting Trade-offs for India’s Electronics Manufacturing Success

The improving performance of India’s electronics manufacturing sector has been a topic of intense policy interest in the country. Electronics exports saw a spectacular growth of almost 50 percent in FY23, reaching $25.3 billion. Electronics is now India’s sixth largest merchandise export, overtaking readymade garments. Encouraged by these successes, the Indian government is confident of achieving its target of $140 billion in electronics exports and 1 million new jobs by FY26. This sector’s success is now portrayed as a vindication of the Indian government’s flagship industrial policy instrument: the Production Linked Incentive (PLI) scheme. Policy debates surrounding the PLI have primarily focused on its design, effectiveness, and potential pitfalls. But the elephant in the room is the crucial role of Chinese companies in India’s electronics manufacturing story. Read the full article here.