Indian Prime Minister Narendra Modi is pushing for the world’s biggest tech companies to see India as a premier destination for manufacturing and innovation, furthering his government’s efforts to position the country as a global hub for technology. Modi made this appeal in a high-profile meeting with 15 of the most influential CEOs of the US tech industry, following his participation in the annual Quad meeting in New York.
This strategic roundtable discussion was attended by leaders from some of the biggest names in the global tech landscape, including Google’s Sundar Pichai, Adobe’s Shantanu Narayen, IBM’s Arvind Krishna, and NVIDIA’s Jensen Huang. Modi used the opportunity to highlight India’s potential to become a key player in the global supply chain, particularly in areas such as semiconductor manufacturing, which has taken on added significance amidst the geopolitical shifts in the tech world.
During his address, Modi said, “They can co-develop, co-design, and co-produce in India for the world.” His statement underscores India’s growing ambitions to be seen not just as a major consumer market but as a global leader in technological innovation and advanced manufacturing.
India: A Rising Tech Powerhouse
India’s rapid economic rise and its growing status as a tech hub have made it a focal point for global corporations seeking alternatives to China for manufacturing and supply chain diversification. With rising geopolitical tensions, particularly between the United States and China, companies are looking for reliable partners to reduce their dependence on Chinese manufacturing.
Over the past few years, India has aggressively marketed itself as an attractive destination for global tech companies seeking to relocate or expand their manufacturing capabilities. This has included creating a favorable business climate, investing in infrastructure, and fostering a skilled workforce that can support high-tech industries.
India’s ability to present itself as a viable alternative to China in the technology sector is bolstered by its sizable population of highly trained engineers, a large English-speaking workforce, and a robust startup ecosystem. Nevertheless, significant challenges remain, particularly in the semiconductor manufacturing sector, where India still lags behind major suppliers like China, Taiwan, and South Korea.
Semiconductor Focus
One of India’s key strategic goals in the tech sector has been to establish itself as a major player in semiconductor manufacturing, an area of critical importance in the global tech supply chain. Semiconductors are the backbone of modern technology, powering everything from smartphones and laptops to electric vehicles and advanced military systems.
In recent years, India has focused on becoming a manufacturing hub for semiconductors. However, the country is still far from competing with established leaders like Taiwan and China, who dominate this sector. India’s reliance on semiconductor imports has exposed vulnerabilities, especially during global chip shortages driven by the pandemic and geopolitical tensions.
In an effort to address this gap, Modi’s government has introduced incentives for companies that are willing to invest in semiconductor manufacturing. The meeting with US tech CEOs was part of a larger initiative to attract foreign direct investment in this critical sector.
The India-US semiconductor pact, signed just days before Modi’s meeting with the CEOs, is a significant step toward this goal. Described as a “watershed arrangement,” the pact aims to establish a fabrication plant in India that will produce chips for national security, next-generation telecommunications, and green energy applications. This is India’s first joint semiconductor project with the US, and it marks a critical juncture in the country’s ambitions to become a semiconductor powerhouse.
According to a joint release from India and the US, the plant will focus on “three essential pillars for modern war fighting: advanced sensing, advanced communications, and high voltage power electronics.” Chips produced at this facility will support the US and allied militaries, as well as India’s own defense sector.
US-India Semiconductor Pact: A Strategic Gamechanger
The importance of the semiconductor pact cannot be overstated. As the US seeks to reduce its reliance on Chinese-made semiconductors, India is emerging as a potential partner in securing the supply chains that are critical to national security and economic stability.
The deal also comes at a time when the global semiconductor landscape is rapidly shifting. With rising tensions between the US and China, and the ongoing competition for dominance in key technological areas such as artificial intelligence (AI), 5G, and quantum computing, the semiconductor industry has taken center stage in geopolitics.
Previous attempts by India to develop a homegrown semiconductor industry have struggled, but this new deal gives a fresh impetus to India’s aspirations. As the US aims to build resilience against China’s dominance in the semiconductor market, this collaboration could play a crucial role in reshaping the global tech landscape.
The pact also aligns with broader geopolitical goals. The US and India are increasingly viewing their partnership as a strategic counterweight to China’s influence in the Indo-Pacific region. The Quad summit, which Modi attended just before meeting the tech CEOs, underscored the importance of this partnership.
Quad Summit and US-India Relations
Modi’s US visit came in the wake of the Quad summit, a security alliance that includes the United States, Australia, Japan, and India. The group’s focus on Indo-Pacific security and stability was evident in the joint communique issued at the end of the summit, which reiterated the partners’ commitment to resisting coercive behavior and unilateral actions, particularly in the South China Sea.
While the statement didn’t explicitly name China, it was clear that the language was directed at countering China’s growing influence in the region. “We strongly oppose any destabilizing or unilateral actions that seek to change the status quo by force or coercion… We seek a region where no country dominates and no country is dominated,” the statement read. Analysts believe that the stronger language reflects the growing concerns about China’s military buildup and aggressive actions in disputed maritime territories.
Michael Kugelman, director of the South Asia Institute at the Wilson Center, observed that the Quad’s messaging this year was more assertive than ever before. “The language in the joint statement on provocations in the South China Sea, while not directly referring to China, is stronger than it’s ever been before,” Kugelman noted.
Beyond security concerns, the Quad partners announced plans for collaboration in several key areas, including maritime surveillance, a pilot logistics network for disaster relief, and a project aimed at combating cervical cancer. These initiatives reflect the Quad’s efforts to broaden its agenda beyond military cooperation to include health, disaster resilience, and technological innovation.
Modi’s Rally: Indian-Americans as ‘Brand Ambassadors’
Alongside these high-level discussions, Modi made time to address a gathering of Indian-Americans in New York, where he spoke to a crowd of 15,000, lauding their contributions as “brand ambassadors” for India. Modi emphasized the global role India is playing in areas such as innovation, supply chains, climate action, and economic development.
“India is key to global development, global peace, global climate action, global innovations, global supply chains,” he declared. Modi’s outreach to the Indian diaspora is part of a broader strategy to leverage the influence and resources of the global Indian community in bolstering India’s standing on the world stage.
India’s Tech Aspirations
As India continues to assert itself as a major player on the global stage, the push for foreign investment in high-tech sectors like semiconductor manufacturing will be key to the country’s future economic growth. Modi’s efforts to court US tech giants and deepen ties with global powers through forums like the Quad demonstrate a long-term vision to elevate India’s role in the global economy.
However, the road ahead is not without challenges. India’s semiconductor ambitions, while promising, face significant hurdles, including the need for massive infrastructure investments, access to cutting-edge technology, and a steady supply of highly skilled labor. Moreover, India will have to navigate complex geopolitical dynamics, particularly as the US and China vie for dominance in the tech sector.
Nonetheless, with a clear commitment from the Modi government to create a favorable environment for innovation and manufacturing, and with strategic partnerships like the one with the US, India is poised to become an increasingly important player in the global technology ecosystem.
As Prime Minister Modi’s US visit comes to a close, the message is clear: India is open for business, and it is ready to play a leading role in shaping the future of technology and global supply chains.
