India emphasizes deeper participation in global value chains

Traders Union
All News
Financial News
India emphasizes global value chains

Highlights

Ashwini Vaishnaw said India is reducing external dependence by prioritizing manufacturing, design, and development capabilities within the semiconductor ecosystem.
Chip designs at 2nm and 3nm for companies such as Qualcomm, Nvidia, and AMD are being developed in India, strengthening the country’s design capabilities.
Five of the 12 projects in the first version of the semiconductor programme are in commercial production, while the second version is focused on greater investment in materials and inputs.

This article was translated from the original. Read the original version by our correspondent here.

Focus on semiconductor strategy and the value chain

According to Forbes India, speaking at the Bloomberg New Economy Forum 2026 in Delhi on Wednesday, Ashwini Vaishnaw said that India’s economic growth faces a greater risk of disruption from global factors than from domestic ones, so the country is moving to become an important part of global value chains to ensure technological sovereignty. He said India is prioritizing manufacturing, design, and development capabilities within the country’s semiconductor ecosystem to reduce external dependence.

Vaishnaw said technology is inherently part of global value chains, and India wants to add value in the areas where its role is strongest. According to him, two-nanometre and three-nanometre chip designs for major companies such as Qualcomm, Nvidia, and AMD are being developed in India, highlighting the country’s design capabilities.

The minister also said that India is establishing itself as a reliable partner in global value chains and cannot afford to wait 20 to 25 years to develop semiconductor chip manufacturing processes. He said the country is building manufacturing capabilities in a systematic progression from finished products to modules, then components, materials, and ultimately capital.

Impact of materials dependence and technological sovereignty

Vaishnaw said India’s greatest dependence is in the area of materials. According to him, in the first version of the semiconductor programme, 12 projects were selected with a major anchor investor, five of which are in commercial production. In the second version, greater attention is being paid to materials, chemicals, gases, substrates, and other inputs, as building this ecosystem takes time and effort.

On the same panel, Cisco Chair and CEO Chuck Robbins said close coordination between companies and governments is essential to ensure resilience, maintain operational control, and avoid pressure on commercial viability. He said Cisco has developed a portfolio of sovereign critical infrastructure, which has been introduced in several European countries over the past year and will also be brought to India in the coming months.

Robbins also said that the pace of decision-making and planning related to technological sovereignty could fall from six months to 90 days in the future. This indicates that India’s semiconductor and critical technology infrastructure is not merely a matter of industrial policy, but is also becoming a central issue for global supply chains, investment decisions, and strategic partnerships.

Our previous report focused on Tata Sons Chairman N. Chandrasekaran’s assessment that long-term demand for semiconductor chips will remain strong despite global technology and supply-chain uncertainties, and that the sector’s strategic importance is linked to demand and financial viability. That article also highlighted that companies are seeking to maintain stable deliveries and margins amid disruptions not only through efficiency, but also by building resilience and adopting a de-risking approach.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.