The Indian Government announced a policy to set up semiconductor manufacturing three years ago. The policy has borne fruit as several Indian and foreign companies have set up facilities in India for manufacturing and design of semiconductor chips. The Tata Group has established two units in Gujarat and Assam with a total investment of around Rs1.2 trillion. It is expected that the manufacturing of sophisticated chips will create 50,000 jobs, with every semiconductor job leading to ten additional jobs in the ecosystem. Foreign companies like a Dutch company and a Japanese company have also set up R&D facilities and undertaken semiconductor design activities in India.
Encouraged by the response from Indian and global players, the Indian Government has announced a second phase of the semiconductor policy. The quantum of the incentive for this phase is expected to be larger than the Rs760 billion allocated in the first phase. The government aims to establish India as a trusted partner for supplying advanced chips globally and ensure every electronic device has an Indian-made chip. The government is focused on developing the semiconductor industry in India to meet global demand and create more job opportunities in the country.
Electronic transactions are growing rapidly globally, posing a risk of money laundering and terrorist funding operations. To address this, the Indian Government is supporting the Financial Action Task Force (FATF) in proposing stricter norms for online transactions. The FATF is working on determining the amount of information required by law enforcement agencies to combat financial crimes. Access to data is crucial for tracking and acting against those involved in illegal activities. The Indian government is taking steps to tighten regulations to curb terror financing and money laundering in the country.
India’s talent in software development is significant, although not all Indians are fluent in English. However, artificial intelligence is breaking down language barriers, enabling non-English speaking developers to contribute to the coding community. AI tools like GitHub are democratizing the collaboration model and allowing developers to navigate code bases in regional languages. The number of Indian developers is expected to increase significantly, surpassing the United States by 2027. This growth in the developer community will drive technological progress and innovation, leading to economic opportunities for India.
In conclusion, the Indian Government’s semiconductor policy has attracted investments from Indian and global companies, leading to the establishment of manufacturing facilities and job creation in India. The government’s support for stricter regulations in electronic transactions aims to combat financial crimes like money laundering and terrorist funding. The use of artificial intelligence in software development is breaking down language barriers and enabling non-English speaking developers to contribute to the coding community, driving technological progress in India. The future of the semiconductor and software development sectors in India looks promising with continued government support and technological advancements.
