Topic: Changes in industrial policy and their effects on industrial growth
Q5. Evaluate the strategic and economic significance of semiconductors for India. Examine the key challenges in building a domestic ecosystem. Propose policy measures to achieve long-term self-reliance. (15 M)
Difficulty Level: Medium
Reference: TH
Why the question
Semicon India 2025 and PM’s statements on reducing paperwork, securing investments, and India’s goal to capture a significant share in the global chip market make the topic highly relevant for economy and technology sections of GS-3.Key demand of the question
The question requires analysing the strategic and economic importance of semiconductors for India, examining the major challenges in building a domestic ecosystem, and suggesting policy measures for achieving long-term self-reliance.Structure of the Answer:
Introduction
Highlight the global importance of semiconductors and India’s aspiration to be a key player in the trillion-dollar market.
Body
- Strategic and economic significance – Explain role in national security, economic growth, jobs, and digital economy.
- Key challenges – Discuss financial, technological, infrastructural, talent, and policy hurdles.
- Policy measures – Suggest reforms like R&D investment, global partnerships, skill development, cluster-based manufacturing, and regulatory streamlining.
Conclusion
End with a futuristic note on India’s potential to emerge as both a consumer and producer in global semiconductor supply chains.
