Introduction:
Initiated in 2014, ‘Make In India’ by the Indian government aims to bolster domestic manufacturing, emphasizing self-reliance for economic growth and job creation, encompassing critical sectors like semiconductors to reduce imports and propel technological advancements.
Body:
Challenges Impeding Semiconductor Manufacturing Growth:
- Infrastructure Gap: Limited wafer fabrication facilities pose a challenge, accounting for only 0.3% of global semiconductor production as of 2022.
- Investment Shortfall: Inadequate investments in R&D and manufacturing facilities hinder expansion, with India contributing only 0.7% to global R&D expenditure in 2022.
- Skilled Workforce: A shortage of skilled labor in semiconductor design and manufacturing, with a skill gap of around 200,000 engineers, limits growth.
- Regulatory Complexities: Cumbersome regulatory processes and unclear policies deter investors, with India’s ease of doing business ranking at 63 out of 190 countries in 2022.
- Intellectual Property Protection: Insufficient measures for IP protection can discourage innovation and investments, with India ranking 48th in IP protection in the Global Innovation Index 2021.
Measures to Promote Semiconductor Manufacturing:
- Production-Linked Incentive (PLI) Scheme: Allocates INR 40,995 crore for electronics, including semiconductors, offering percentage-based incentives to boost domestic production.
- Electronics Manufacturing Clusters (EMC) Scheme: Supports infrastructure development and clusters, providing up to 50% funding to reduce bottlenecks.
- Skill Development: The Skill India initiative targets 40 crore skilled workers by 2022, offering programs for semiconductor skills to create a competent workforce.
- National Electronics Policy (NEP): Aims for a competitive electronics ecosystem with a $500 billion turnover target by 2022, promoting R&D and indigenous production.
- Make in India 2.0: Focuses on advanced manufacturing of semiconductors to enhance production and attract investments.
Conclusion:
Addressing significant challenges faced by India’s semiconductor manufacturing sector necessitates focused interventions to improve infrastructure, encourage research, and skill development, and streamline regulations, facilitating effective progress.
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