The Indian government has once again demonstrated its seriousness in strengthening the technology sector through the allocation of a fresh fund of 1.9 trillion rupees, equivalent to 19.7 billion US dollars (around Rp313 trillion). This strategic step was taken to accelerate the development of the domestic semiconductor industry while massively boosting domestic smartphone production.
This latest incentive policy has received the blessing of Prime Minister Narendra Modi's cabinet. Through this stimulus, India aims to transform itself into a global-level technology manufacturing hub, while gradually reducing dependence on foreign electronic component imports.
Indian Technology Minister, Ashwini Vaishnaw, detailed that the budget will be divided into two main sectors. A total of 1.28 trillion rupees is projected specifically for the semiconductor industry, while the remaining budget of 625 billion rupees is allocated to advance local smartphone manufacturing.
This new initiative expands on a similar $10 billion program launched in 2021. The subsidy scheme, which covers up to half of the project costs, has proven successful in attracting interest from global tech giants like US-based Micron Technology, as well as local conglomerate Tata Group, to build their production facilities in the Gujarat region.
In addition to physical construction, this stimulus will focus on chip design, semiconductor equipment manufacturing, deep research (R&D), and human resource capacity building. This step is crucial amid the global race to produce chips to meet the technology needs of the future, such as artificial intelligence (AI) and the automotive sector.
India's aggressive strategy mirrors similar moves taken by other major countries, such as the United States through the CHIPS Act and China through various state investment funds. Going forward, India not only wants to assemble foreign products like Apple's iPhone, but also targets the birth of local smartphone brands capable of competing with the dominance of Chinese manufacturers.
