In News
The past week highlighted a shift in India’s foreign policy intertwined with trade policy and the Make in India push. With the US imposing 50% tariffs on Indian exports, Prime Minister Modi visited Japan and China. These visits aimed not only to mitigate the impact of US tariffs but also to secure supply chains for India’s infrastructure development and boost domestic manufacturing capabilities.

Policy Implications
The stage for the India Semiconductor Mission 2.0 has been set, with a revamp of the Design Linked Incentive scheme underway. With 10 semiconductor projects already in progress, the existing policy push and the next phase of the Semiconductor Mission ^[1] will not only strengthen semiconductor manufacturing in India for domestic and global needs but also boost overall electronics production and allied industries – ensuring resilient supply chains to meet the rising demands of digital India. After four years of focus on electronics manufacturing under the Semiconductor Mission, India is now effectively aligning geopolitics, trade, and Make in India.

Following PM Modi’s Japan visit, Singapore’s support for the growth of India’s Semiconductor Industry ^[2] is expected to bring investments, technology, and advanced capabilities, complementing India’s policy initiatives.