For World to View India’s Potential as Semiconductor Powerhouse, We Need Targeted Trade Policies

India faces a tough task ahead: to show its commitment to building the semiconductor industry. Industrial policies with capital may attract investments and potential bids, but favourable trade policies and a conducive business environment can ensure the completion of the projects and yield results. In the long run, this approach can attract more international semiconductor firms. India can be closer to its goals by adopting the following policy recommendations. To begin with, India must change its approach to foreign trade policy and make it more accommodating to the technology sector. The government can then focus on developing a comprehensive trade policy suited or catered to the semiconductor industry itself.

Weaning away foreign investment from China

Over the past few years, there has been much discussion about India attracting firms that might be seeking to exit China. Initially, these conversations were driven by changes in the Chinese economy, such as rising labour costs, shifting focus towards new technologies and declining productivity. There was a sense that these changes, coupled with improving infrastructure and ease of doing business in India, would make India an attractive option.

Read the full article in the Hindustan Times here.