India wants to cut critical tech dependencies by 2050: Vaishnaw
What's the story
India is looking to reduce its critical technology dependencies and build resilience over the next 20-25 years, Union Minister Ashwini Vaishnaw said. He was speaking at the Bloomberg New Economy Forum. The minister stressed that India wants to be a trusted partner in global technology supply chains, instead of going for complete self-sufficiency.
Strategic approach
Identify technologies and components with over-reliance on foreign suppliers
Vaishnaw said India is identifying technologies and components where over-reliance on foreign suppliers could make its economy and manufacturing sector vulnerable to external shocks.
He stressed that this doesn't mean India will make everything in-house.
The government aims to build capabilities in strategically important sectors while strengthening its position within global technology supply chains.
"Things change, politics change, geopolitics play a big role." he said.
Sectoral growth
Semiconductor industry, mobile phone manufacturing prime examples
Vaishnaw cited India's semiconductor industry as a prime example of this approach.
The government is looking beyond chip-making to develop the materials and components needed for domestic production.
He also pointed out how India has come a long way in mobile phone manufacturing, from assembling imported components to producing modules and other parts domestically.
R&D emphasis
Need to increase spending on research and development
Vaishnaw stressed the need for India to increase spending on research and development, especially applied research.
He cited the example of India's indigenous end-to-end 4G telecom technology stack developed in 3.5 years through government-private industry collaboration.
The minister said this project showed India's capability to develop complex technological systems domestically when research, industry participation, and government support are aligned.
Future risks
Concerns over future global financial disruptions
Vaishnaw warned that technological disruptions may coincide with broader economic challenges in the coming decades, creating new pressures on governments and businesses.
He flagged artificial intelligence's impact on employment and the services industry as a major change countries would have to prepare for.
The minister also expressed concerns over debt levels in advanced economies and future global financial disruptions.