Prime Minister Modi Hails India as an Investment Destination for Semiconductors Tech

Hailing India for being an attractive investment destination for semiconductor technologies, Prime Minister Narendra Modi on Friday said the country's own consumption of semiconductors is expected to cross $80 billion (roughly Rs. 6,10,910 crore) by 2026 and may touch $110 billion (roughly Rs.8,40,000 crore) by 2030.

PM Modi said that the country is building a digital infrastructure to connect over 1.3 billion citizens.

"We are using digital technology to transform lives in all sectors of governance from health and welfare to inclusion and empowerment," PM Modi said while virtually inaugurating the three-day Semicon India Conference-2022 in Bengaluru.

The Prime Minister said that with steps like connecting six hundred thousand villages with broadband investment in developing capabilities in 5G, IoT, and clean energy technologies, India is paving the way to lead the next technology revolution.

India is headed for robust economic growth with the world's fastest-growing startup ecosystem and has undertaken wide-ranging reforms for improving the ease of doing business in the country, PM Modi said.

He noted the various reform measures taken by the government like the abolition of more than 25,000 compliances, a push towards auto-renewal of licenses, transparency, and speed in regulatory framework via digitisation, and one of the most favourable taxation structures in the world.

The Prime Minister asserted, "We have an exceptional semiconductor design talent pool which makes up to 20 per cent of the world's semiconductor design engineers. Almost all of the top 25 semiconductor design companies have their design or Research and Development centers in our country."

He also said that India has undertaken several measures toward transforming the Indian manufacturing sector. "At a time when humanity was fighting a once in a century pandemic, India was not only improving the health of our people but also the health of our economy", he said.

The Prime Minister also talked about ''Production Linked Incentives'' schemes that offer incentives of over $26 billion (roughly Rs. 1,98,570 crore) in 14 key sectors.

"Over the next 5 years, the electronics manufacturing sector is expected to see record growth," he informed.

He also said that the recently announced Semicon India's programme with a total outlay of over $10 billion (roughly Rs. 76,375 crore) aims to provide financial support to companies investing in semiconductors, display manufacturing, and design ecosystems.

PM Modi acknowledged the need for government support and assured the industry leaders of the best efforts of the government to provide a conducive environment for business. "While the industry works hard, the government must work even harder," he added.

Noting the formation of the new world order, the Prime Minister asked to seize the opportunity that is emerging.

"We have worked hard over the last few years to create an environment that encourages growth. India has an appetite for tech and risk-taking. We have put the odds in your favor as far as possible through a supportive policy environment. We have shown that India means business," the Prime Minister concluded.

Union Ministers, semiconductor industry business leaders, investors, academics and diplomats were among those present on the occasion.