MNCs are shifting not only their supply chains but also value chains to India, says Union Minister for IT and electronics
About 2,000 global capability centres in India do advanced design work in areas like complex semiconductor chips as multinational companies are looking to shift their value chains to the country, Union Minister Ashwini Vaishnaw said in Davos on January 23.
“India has an abundance of talent. Almost 2,000 GCCs are working on advanced designs, from managing operations to designing complex chips. And the biggest factor is the way our Prime Minister has conducted economic and foreign policy over the last 10 years. Due to these policies, the world today trusts India,” he said.
“This is why so many people are shifting not just their supply chains but value chains as well to India. So that’s the framework I would like to present - the framework of trust, design and availability of talent,” he added.
According to a recent Report by the Ministry of Electronics and Information Technology titled ‘Estimation And Measurement Of India’s Digital Economy’ Report, India is catering to almost 55% GCCs and emerging as a leading country in this.
In terms of semiconductor manufacturing too, the IT Minister assured that soon India will join the top 3 destinations for semiconductors in the coming years.
As per IBEF (India Brand Equity Foundation) data, the Indian semiconductor market was valued at US$ 26.3 billion in 2022 and is projected to grow at a CAGR of 26.3%, reaching US$ 271.9 billion by 2032.
The Indian government has been actively formulating policies to strengthen its semiconductor industry. Semiconductor Mission is one of its policies to establish India as a global hub to fulfil the world's demand for semiconductors. In this direction, the government is developing manufacturing infrastructure plus promoting R&D (Research & Development) on a large scale.
Government also offering additional incentives in the form of PLI (Production-Linked Incentive) schemes for manufacturing advanced assembly units.
AI is another focus area of the current government which is reflecting in their policy formulation. As per Vaishnaw, “Today, models are rapidly becoming commoditized. The focus should now shift towards building an ecosystem that fosters the development of use cases, applications, and intelligent agents tailored for diverse industries and global needs.
He believes that India can take the lead in AI services, just like it took the lead in IT services.
India has no lesser potential to dominate the semiconductor and AI sectors, leveraging its abundant talent pool and vast resources. The country's robust infrastructure and strong policy support further enhance its competitive edge, positioning it as a global leader in these domains.
The World Economic Forum 2025 is currently underway in Davos, Switzerland. The theme of WEF, Davos 2025 is ‘Creating a Resilient Future: Addressing Global Challenges in a Fragmented World.’