Believe it or not, Washington denied Modi a visa due to a US regulation…

Since then, much has changed, particularly in the global context and in Modi's political position, and the veto is a distant memory. India has emerged as a powerful nation, and the United States needs support in its dispute with China…

According to the World Bank's governance indices, the country has made significant improvements in management, regulation, and anti-corruption efficiency…

Modi now is determined to position India as the foremost producer of semiconductors in the race against China's dominance in this sector…

Born in Vadnagar on 17 September 1950, Mr Narendra Modi played a crucial role in elevating India's economy to unprecedented heights. Despite his leadership drawing differing perspectives, Modi indisputably remains a prominent figure in international politics and economics, given his substantial contributions and global impact.

As we recount Mr Modi's distinguished political career at home and abroad, we are reminded of the fables of our childhood. However, it is worth noting that as the leader of Gujarat between 2005 and 2014, Modi was barred from entering the United States. Washington barred Mr Modi from obtaining a visa due to a US regulation prohibiting visas to foreign government officials promoting or accountable for severe restrictions on religious freedom. The ban resulted from violent conflicts between Hindus and Muslims in Gujarat in 2002, which occurred while Modi was the state's leader. He is a nationalist politician from the Hindu faith who hosted the G20 summit in New Delhi.

Since then, significant changes have occurred, especially in the global context and Mr Modi's political position, with the veto now a distant memory. India has emerged as a powerful nation, and the US needs backing in its dispute with China. Last June, Modi was honoured in Washington for the umpteenth time, inducted into the exclusive cohort of leaders invited to address the gathered US chambers twice, a privilege bestowed upon iconic figures like Churchill and Mandela.

The two events signify a significant milestone for a highly controversial leader. Narendra Modi, has been Prime Minister of India since 2014 while simultaneously leading the Hindu nationalist BJP party. Although India has made positive strides in economic and geopolitical factors.

Mr Modi is a charismatic and determined political leader. He requested that the private sector enhance its efforts and vocalised his desire to achieve global dominance during his 75th anniversary of Indian independence speech, which gained significant popularity.

As the leader of a nation that has encountered unparalleled economic growth in the last two years and accomplished a significant feat in its lunar program in August, Mr Modi's influence is increasing globally. According to the World Bank's governance indices, the country has made clear progress in multiple areas, such as management, regulation, and anti-corruption efficiency. The summit achieved a diplomatic victory in steering a challenging consensus.

India is undertaking significant structural investments to modernisemodernise and alleviate poverty. The way forward is extensive, as is the gap compared to its primary competitor, China, and there must be a guarantee of smooth progress. Nonetheless, there is evidence of recent enhancements in India's current situation.

Cooperate with objective and ethical thinking…

We are dedicated to providing our loyal readership with high-quality and precise information. We've invested numerous hours conducting rigorous research, obtaining necessary software licenses, and securing venues to share our valuable work. Our blog has demonstrated success in attracting readers who value our dedication to journalism. However, sustaining this excellent standard requires financial backing. That is why we are appealing to our esteemed readers to show solidarity and offer support. By contributing a minimum of 2 euros, you can help sustain our blog and guarantee that we continue to provide you with the most accurate and well-researched articles. We are immensely grateful for any support you can provide. Your assistance will not only cover our operational expenses but also aid us in acquiring new tools and resources to enhance the quality of our content. Every donation, regardless of the amount, greatly assists us in reaching our mission. Your support will enable us to maintain our independence and continue to provide you with the impartial journalism you depend on. Yours sincerely,

The Team

Modi aims to position India as a leading producer of semiconductors…

An article published in yesterday's issue of The New York Times by Alex Travelli reports the current competition between India and China in this field while citing studies from New Delhi, Gandhinagar, and Dholera.

“A 12-inch silicon semiconductor disc, reflecting like a platinum record, shines on the wall of Ashwini Vaishnaw's New Delhi office. As India's minister for electronics and information technology, Vaishnaw proudly displays this disc beside a portrait of Prime Minister Narendra Modi. The microprocessors' circuits, measured in nanometres and invisible to the human eye, are the most sophisticated objects. They are comparable to oil in terms of their immense value.

As per the Indian government, India will soon manufacture all microprocessor chips in the digital world. Mr Modi's confidence that he can steer India to the forefront of advanced technology manufacturing is apparent and magnanimous.

In July, numerous foreign business people gathered in Modi's home state of Gujarat. Subsidies worth $10 billion are available, financing up to 50 or 70 per cent of a company's expenses. The chairman of British mining and metals group Vedanta, Anil Agarwal, suggested that "Vedanta made-in-India chips" will be available by 2025.

Dholera, Gujarat, will soon be home to India's first 'semiconductor city' in a barren plain designated for this purpose. It is approximately the size of Singapore. Newly constructed, direct roads interconnect wet fields, connecting planning bureaus to energy facilities. Freshwater canals, sourced from a diverted river, are also present alongside the colossal outline of an international airport engraved in the dust. Except for these features, Dholera's colossal grid is essentially barren. In the worldwide pursuit of computer chips, Dholera hopes to prevail.

India's tech clusters around Bengaluru, a two-hour flight to the south, have embedded the country within the global semiconductor community through their chip design work rather than chip production. In recent years, the government has devoted significant investment in subsidies to transform India into an electronics manufacturing hub.

However, the actual challenge remains in chip production…

Since 2020, Mr Modi has implemented "production-linked incentives" to incentivise mobile phone manufacturers to increase their production in India, offering more significant government subsidies by production rates. Although regular factory workers with some skill level can complete mobile phone assembly work. On the other hand, the production of chips requires highly skilled workers; presently, Taiwan is the preferred location for manufacturing advanced logic chips.

As concerns about China escalate and chips continue to be crucial to all forms of technology, the situation appears increasingly precarious for buyers and sellers. The Taiwan Semiconductor Manufacturing Company, established in 1987 by chip pioneer Morris Chang, is endeavouring to assist the United States in setting up its fabs in Arizona through President Biden's CHIPS Act.

India needs to have these capabilities…

India has no background in chip manufacturing and needs more highly specialised engineers and equipment necessary for starting. Nevertheless, the country plans to produce chips domestically and shortly. It took TSMC and other Taiwanese companies several decades, supported by government funding and billions in capital investment, to reach their current level of success.

Since October last year, when the United States decided to limit Western tools and labour for the Chinese chip industry, China has invested extensively in its chip makers. This investment is significantly higher than India has spent on its own companies.

Mr Agarwal of Vedanta, the conglomerate aiming to establish India's inaugural semiconductor foundry, foresees chip production in two and a half years. He has appointed David Reed, a seasoned professional from companies involved in chip-making worldwide, and also, like Mr Chang, from Texas Instruments - a once-renowned American chip-making firm. Mr Reed, who possesses excellent leadership qualities and an amicable style, plans to utilise his network within the closely-knit community of chip-makers. He aims to persuade 300 industry specialists from European and East Asian factories to reside in rural Gujarat to set up a complex.

He quietly states that he needs to triple the salaries of his new employees. Additionally, an equal number of Indians will eventually be trained to replace them.

Mr Reed's biggest challenge will be convincing established players in the East Asian community to move to an unfamiliar location for themselves and their families. The land and power infrastructure discovered in Gujarat will attract foreign recruits; however, housing, schools, and nightlife require further development. Nevertheless, the local candidate pool instils optimism as India produces over 1.4 million highly skilled engineers annually, while Taiwan faces a shortage of fresh talent.

Moreover, creating microchips demands numerous bespoke materials. Mr Vaishnaw, the government official in charge, stated that India's significant chemical plants near Dholera can produce the required special gases and liquids for operating any chip factory. The proper connectivity via seaports and railheads can guarantee a high standard level of connectivity.

The Indian technology industry is delighted to be in the spotlight, with the Chandrayaan-3 lunar lander successfully landing on the moon's south pole at the end of August as a prime example. Mr Modi saw the Group of 20 summit as a significant opportunity to highlight India's digital public infrastructure.

An increasingly important aspect of India's chip-making industry is its relationship with China, which has changed from being a significant investment destination to one viewed cautiously. Prime Minister Modi has emphasised India's role in establishing a reliable supply chain for countries that do not have strong ties with Beijing.

At the beginning of his first term in 2015, Mr Modi introduced the "Make in India" programme with the support of chip industry pioneer Morris Chang. He has striven to establish American manufacturing plants, or "fabs", in Arizona with the assistance of President Biden's subsidy-subsidised CHIPS Act.

India needs a history in this regard.

In 2015, early in Mr Modi's first term as prime minister, he announced a 'Make in India' programme, the broader industrial push that frames the current CHIPS initiative. But manufacturing's economy share has since stagnated, hovering around 15 per cent. Smaller Asian countries such as Bangladesh and Vietnam have overtaken India in most categories, exporting larger volumes of goods such as garments and electrical equipment.

India excels in the export of intellectually demanding services and 'deep tech'. With the notable exception of pharmaceuticals, its manufacturing companies have largely failed to compete internationally.

Some business leaders - and not just Mr Modi's naysayers - argue that the Indian government has bitten off more than it can chew by setting logic chip foundries as its goal. Indeed, the timeframe announced by Mr Agarwal's Vedanta is highly ambitious, if not implausible. That is not to say that there are no gains to be made: Expanding India's role in the global chip supply chain looks like a much better bet. Indian officials do not put it this way, but it is a Plan B for Mr Modi's chip-making moonshot.

For example, Micron Technology, a memory chip company based in Boise, Idaho, has committed $2.7 billion to another industrial site in Gujarat, 60 miles from Dholera. It is to become a centre for ATMP work, chip jargon for "assembly, test, marking and packaging". These are the advanced processes that go into making modern chips perform.

Malaysia does some of this work now, and India could nibble away at its market there while doubling down on chip design.

Whether these plans succeed or fail, they reveal a gargantuan scale of ambition. They also make clear that India sees a muscular role for the state, with a mix of tariffs and subsidies to help its national champions get off the ground and into global competition. This kind of state capitalism puts it in the company of China, the United States and other major countries that have belatedly embraced versions of it. And that may be Modi's ultimate goal.

Cooperate with objective and ethical thinking…

We are dedicated to providing our loyal readership with high-quality and precise information. We've invested numerous hours conducting rigorous research, obtaining necessary software licenses, and securing venues to share our valuable work. Our blog has demonstrated success in attracting readers who value our dedication to journalism. However, sustaining this excellent standard requires financial backing. That is why we are appealing to our esteemed readers to show solidarity and offer support. By contributing a minimum of £2, you can help sustain our blog and guarantee that we continue to provide you with the most accurate and well-researched articles. We are immensely grateful for any support you can provide. Your assistance will not only cover our operational expenses but also aid us in acquiring new tools and resources to enhance the quality of our content. Every donation, regardless of the amount, greatly assists us in reaching our mission. Your support will enable us to maintain our independence and continue to provide you with the impartial journalism you depend on. Yours sincerely,

The Team