India must reduce chip sector concentration, build alliances: Misri

India's semiconductor ambitions require a balanced approach combining domestic self-reliance with international collaboration, according to Foreign Secretary Vikram Misri. Speaking on the country's chip sector strategy, Misri emphasized the need to reduce concentration risks in semiconductor manufacturing and design while maintaining openness to global partnerships.

Misri stressed that achieving semiconductor self-reliance does not mean complete isolation from world markets. Instead, India should focus on building sovereign capabilities in critical areas of chip production—such as advanced manufacturing and specialized design—while engaging with international partners to strengthen the broader ecosystem.

The remarks underscore New Delhi's multifaceted approach to reducing dependence on foreign semiconductors, a sector deemed vital for national security and technological advancement. India has been pushing domestic semiconductor manufacturing through initiatives like the Production-Linked Incentive scheme, while simultaneously courting global chipmakers to establish operations on Indian soil.

Misri's call for reduced concentration reflects growing global concerns about supply chain vulnerabilities exposed during recent semiconductor shortages. The Foreign Secretary's comments suggest India views a diversified, partnership-driven model as preferable to autarkic approaches, positioning the country as an attractive destination for international chip manufacturers seeking to de-risk their operations.