Industry backs PM's manufacturing, semiconductor push as key to global value chains

Industry bodies have broadly welcomed Prime Minister Narendra Modi's Independence Day address, which placed manufacturing, semiconductors and MSMEs at the centre of India's economic agenda. Business leaders said the emphasis on domestic capability and wider market access could help India move up global value chains and drive the next phase of growth.

The semiconductor sector drew particular attention. Pankaj Mohindroo, Chairman of the India Cellular & Electronics Association (ICEA), described the Prime Minister's commitment to adding five to eight semiconductor plants over the next seven to eight years as a decisive shift in ambition. "The bold commitment to 7 to 8 new semiconductor fabs signals an unequivocal move from assembly-line dependence to a leadership position at the heart of global technology manufacturing," he said. Mohindroo added that the focus on manufacturing and artificial intelligence could help India shed its image as a secondary option in global electronics supply chains.

Chandrajit Banerjee, Director General of the Confederation of Indian Industry (CII), said the Prime Minister's focus on semiconductors, nuclear energy and the green and blue economies pointed to where India's next decade of growth would come from. He said industry was ready to back the vision with sustained investment in strategic areas. Banerjee also noted that wider market access through free trade agreements could help agriculture and food-processing businesses build global brands around products such as millets, spices, fruits and flowers, creating opportunities for farmers and rural enterprises.

On MSMEs, ASSOCHAM President Nirmal Kumar Minda said the emphasis on FTAs, global trade and strategic sectors could open new doors for smaller enterprises. "Greater market access and stronger global value-chain integration can create new opportunities for Indian industry, MSMEs and exporters," he said.

The Prime Minister had urged MSMEs to leverage India's expanding network of free trade agreements to reach global markets, while stressing the need to meet international standards on cost, quality and scale. He also called for building the entire manufacturing value chain domestically and positioning India as a trusted hub in global supply chains.