Discuss the strategic and economic significance of India's semiconductor manufacturing push. Evaluate the role of the India Semiconductor Mission in achieving self-reliance in electronics.

Semiconductors are, as the Prime Minister noted at the Semiconductor Executives' Roundtable, "the basis of the Digital Age" [1]. With chip imports of USD 23.5 billion in 2024 — the single largest item in India's electronics import bill — and a 0.02% share of world chip exports [5], domestic capability is now both an economic and a security necessity.

Strategic significance

• Supply-chain de-risking: chips are dual-use (defence, telecom, AI hardware); the roundtable's participation by Micron, Rapidus, Tokyo Electron and Infineon [1] anchors India in the global "China+1" diversification.
• Technology diplomacy: deepens India–US–Japan partnerships, with global majors seated alongside Indian firms like CG Power and Kaynes [1].

Economic significance

• Import substitution and jobs across fabrication, ATMP/OSAT and design, supported by 50% fiscal support for fabs and packaging units [6].
• Leveraging existing talent: about 20% of the world's chip-design engineers work in India [5].

ISM: achievements

• Ten projects worth Rs 1.6 lakh crore approved by December 2025 [5]; the Design Linked Incentive scheme has backed 23 companies and 24 designs [5].
• ISM 2.0 (Budget 2026-27, Rs 1,000 crore) correctly targets equipment, materials and full-stack Indian chip IP [5].

ISM: limitations

• Weak utilisation — only 23% of funds used in 2023-24 and 9% in 2024-25 [5]; approvals are not yet output.
• Low-value concentration — nine of ten projects are OSAT units, only one a foundry [5].
• IP leakage — Indian design revenue stays under Rs 150 crore a year as IP vests abroad [5].
• Cost disability — manufacturing costs run 14–18% above China's, with costlier credit and unreliable power [5]; India's ~USD 10 billion outlay is modest beside the US CHIPS Act's USD 53 billion for fabs [6].

ISM has credibly launched the ecosystem but not yet delivered self-reliance. Acting on NITI Aayog's call for a unified single-window clearance [5], enlarging DLI caps to retain IP, and tiered skilling can convert approvals into fabs — making Atmanirbhar Bharat in electronics a measured, achievable reality.