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Davos 2025: How India is Transforming into a Global Tech and Semiconductor Leader
Davos Insights: Ashwini Vaishnaw’s Vision for India’s Economic and Technological Future
At the World Economic Forum (WEF) in Davos, Union Minister Ashwini Vaishnaw spotlighted India’s economic and technological transformation, emphasizing export-led growth, AI skilling, and semiconductor leadership. Addressing global business leaders, Vaishnaw portrayed India as a nation committed to balanced growth, driven by advancements in manufacturing and services.
Balanced Economic Growth: Manufacturing and Services
Vaishnaw stressed the importance of a combined focus on manufacturing and services for sustainable and inclusive growth. "It cannot be manufacturing or services; it has to be manufacturing and services together, as both are integral to India’s economic trajectory," he remarked.
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🇮🇳 One Team, One Vision: India’s Journey to Viksit Bharat
— Ashwini Vaishnaw (@AshwiniVaishnaw) January 24, 2025
At WEF 2025 in Davos, India showcased its greatest strengths— cooperative federalism and unity in diversity. pic.twitter.com/52KEOHsopZ
Highlighting India’s success in reducing import dependency, the Minister shared that 99% of mobile phones used domestically are now manufactured in India. This shift exemplifies India's transition to an export-driven economy. Similar progress has been seen in sectors like pharmaceuticals, chemicals, and textiles, solidifying India's position as a global manufacturing hub.
India: The ‘Use Case Capital’ of AI
Positioning India as the "use case capital" for artificial intelligence, Vaishnaw emphasized the country’s unique focus on developing practical AI applications rather than merely creating models.
To achieve this vision, the Indian government has committed to:
- Training 1 million individuals in AI tools to foster innovation.
- Establishing 5G labs in 100 universities to drive advancements in AI and telecommunications.
- Equipping 240 universities with advanced semiconductor design tools to support tech talent.
Discussion with a group of founders of AI startups. The focus and direction of India AI mission was well appreciated throughout WEF 2025, Davos. pic.twitter.com/AeDQ9QnQ9S
— Ashwini Vaishnaw (@AshwiniVaishnaw) January 24, 2025
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Vaishnaw noted that India’s robust IT services foundation gives it a competitive edge in creating AI-driven solutions for global industries.
Semiconductor Leadership: A Rising Powerhouse
In a major highlight, Vaishnaw declared that India is emerging as a top 3 global destination for semiconductors, as recognized by industry leaders.
“Our first ‘Made in India’ chip will roll out this year. We are now focused on attracting equipment manufacturers and designers to India,” he announced.
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India’s semiconductor journey gained momentum with the Semicon India programme, approved in December 2021 with an outlay of ₹76,000 crore. With the market projected to grow to $63 billion by 2026, this sector is pivotal in advancing India’s global semiconductor ambitions.
Vaishnaw attributed this rise to India’s core strengths: trust, talent, and design expertise. He emphasized the role of nearly 2,000 Global Capability Centers (GCCs) in positioning India as a leader in advanced designs and global manufacturing.
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Global Trust and Investment Confidence
Vaishnaw credited Prime Minister Narendra Modi’s leadership for fostering a climate of global trust and investment in India’s technological and industrial sectors. He cited India's commitment to innovation, skill development, and self-reliance, which has drawn global attention and capital.
With a strong push toward inclusive growth, India is now seen as an economic powerhouse capable of shaping the global technological landscape.