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India's Strategic Miss

The Business Guardian

|

January 22, 2024

The importance of the chip industry extends beyond economics and electrical use; it plays a vital role in geopolitics and contemporary warfare.

India's Strategic Miss

Throughout the history of warfare, a consistent lesson emerges: the outcome of major conflicts often pivots on the pursuit of new and advanced defence technologies that provide a strategic edge to the winner. In the context of the 21st century, this pivotal innovation is the modern semiconductor chip industry.

The Importance of the chip industry extends beyond economics and electrical use; it plays a vital role in geopolitics and contemporary warfare. These semiconductor chips are present in a wide range of electronic devices, from smartphones and routers to various audio equipment, making them a global essential. Remarkably, despite being produced in just a few countries, their impact spans the globe. To put it into perspective, the combined semiconductor chip purchases of the United States, China, and Japan rival their crude oil imports. However, India stands out for one notable absence: the lack of a domestic semiconductor chip industry.

This raises questions about how India's strategic community failed to recognize this significant gap and the resulting consequences. In the following discussion, we will explore the reasons behind this oversight, consider its implications, and contemplate potential solutions.

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