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India should consider including ICT and semiconductor components in its productivity-linked incentive scheme (PLI) to promote manufacturing in the country, as about 85% of these are currently imported, said Jason Oxman , president, Information Technology Industry Council (ITI). “The opportunity for India to focus a programme of incentives on the ecosystem in semiconductors and in ICT is a big one,” Oxman said, adding that the global industry body has suggested this to the government. The ITI represents the likes of Google, Meta, Dell Technologies, HP, AMD, Applied Materials and others.
Oxman said building up the semiconductor components ecosystem across wafers, chemicals, substrates, and machines along with design, testing and certification is equally valuable as setting up chip fabrication units. He also highlighted the industry’s concerns and uncertainty around the IT hardware import policy under which restrictions may kick back in after September 30. Last year, the government had first imposed and then paused restrictions on imports of PCs, laptops, tablets and others.
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Gupta, Professor: Department of Finance and Business Economics, University of Delhi View Program “There’s a very real risk that if this programme is reinstated, as it was last year, that all of these products are going to be cut off,” Oxman said. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories It must be recognised that supply chains are global and take time to change, and that manufacturing all these products domestically may not be economically viable, he said. “The conflation of national security and economic security issues creates a tension for the technology industry,” said Oxman, adding that trusted companies from trusted countries who may manufacture parts or products in a country deemed a national security threat should not be excluded.
Oxman called out India’s ‘thoughtful approach’ to AI policy with the India AI Mission, contrasting this with the European Union’s ‘heavy-handed regulatory approach’, which has seen Apple withdrawing the availability of the iPhone 16's AI capabilities from the region. On the rules under the Digital Personal Data Protection Act, Oxman said, “Interplays between data protection and AI are really crucial to get right in order to ensure future innovation in India.” He said while medical data is protected under the Act, without such data, even in anonymised form, AI for healthcare diagnostics would be hard to train.
Further, the ITI recommended that global best practices around implementation timelines, typically around 18-24 months, be allowed for compliance with the Act. The ITI will submit feedback regarding the telecom department’s recent notification requiring 50-65% local content in products to be eligible for public procurement, Oxman said. It has also shared feedback to the government about specific tariff lines they think are not in compliance with WTO obligations.
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