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India Needs To Be ‘Aatmanirbhar’ For Semiconductors — Taiwan Can Help

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India Needs To Be ‘Aatmanirbhar’ For Semiconductors — Taiwan Can Help

Over the course of the 20th century and well into the 21st, great powers of the world have used aid, trade and commerce, also known as the tools of economic statecraft, to maintain their footing on the global stage, and, in some cases, to even ascend to the status of a great power. As India aspires to become a $5-trillion economy and earn a seat at the table with global powers such as the US, China and Japan, the rationale for narrowing the divide between industrial and foreign policymaking is even more pronounced.

The past few years have driven home the urgency to take on a more offensive foreign policy approach, over a defensive one. China’s encirclement with debt-infused infrastructure projects in India’s neighbourhood, its border incursions in the North, the unprecedented destruction unleashed by the COVID-19 pandemic, and the abrupt American troop withdrawal from Afghanistan have necessitated a forward-looking approach to foreign policymaking.

The use of economic statecraft will fall under that category of foreign policymaking and it could be the catalyst for fostering better relations between the world’s most vibrant democracy and the world largest, i.e., between Taiwan and India.

Beyond One-China Policy

In the free & democratic world, Taiwan is often touted as one of the world’s leading democracies. However, the world’s largest democracy, India, does not recognise it as an official state. While the two maintain relations through foreign and cultural offices, India maintains a one-China policy, and the chances of it reviewing that policy remain slim. Nevertheless, there are other avenues through which the relationship between Taiwan and India can be developed. In particular, the economic dimension of the relationship presents immense opportunities for growth.

Since the Galwan valley clash of 2019, the Modi government has implemented a slew of measures to decouple from China and accelerate its ‘Aatmanirbhar Bharat’ and ‘Make in India’ initiatives to reduce its dependency and overreliance on Chinese imports. And subsequently, in 2020, the COVID-19 pandemic magnified the risks and exposed the vulnerabilities associated with such an overreliance.

The overreliance is profound in the electronics and allied industries. And this is precisely where Taiwan could step in to fill the void. Taiwan is one of the world’s largest exporters of electronics and controls over 60% of the market share of semiconductor chips used in cars, mobile phones, computers, CCTV cameras and other high-technology products.

Semiconductor Shortage Has Crippled Industries

In the first week of August, New Delhi was phoning its diplomats in the US, Japan and Taiwan to secure semiconductor chips for the struggling auto industry. The halting of semiconductor production at a few manufacturing sites around the world and the surge in demand due to work-from-home conditions led to a mismatch between demand and supply.

The impact of the mismatch was particularly hard on the automobile industry, which uses semiconductor chips. Earlier in the year, automobile plants in Detroit, USA, had to stop production over an acute shortage in supply of semiconductor chips. That could be the fate for plants at Manesar, Pune and Chennai, leading to a loss in production, anywhere between 80,000-1,00,000 cars in the third quarter if the efforts of the diplomats don’t bear fruit.

The Joe Biden administration in the US acted proactively and incentivised semiconductor fabrication units to set up shop in its Southwestern state of Arizona. This was the product of a 100-day supply chain reviewed and conducted to identify sectors that were significant to the national security and that were overly reliant on China.

Similarly, in India, Prime Minister Narendra Modi had offered around $1 billion in cash incentives for enterprises interested in setting up in the country. If Biden administration’s reshoring moves work in favour of his “building back better” agenda, the setting up of factories in India will help the Modi administration realise both its “Aatmanirbhar” goals and its objective of “Make in India”.

TATA’s Steely Approach

Tata’s N. Chandrasekaran has been the most notable one to have jumped on the bandwagon, expressing his desire to get the Tata group into semiconductor manufacturing. This move will address long-term supply concerns of semiconductor chips and protect the Tata Motors supply chain from disruptions. Tata, under Chandrasekaran, has proven several analysts wrong through its revival of Tata Steel and its stellar performance with the Tata Consulting Services.

Back in 1999, the TATAs faced humiliation in Detroit when they approached Ford to sell their passenger vehicle business. Almost a decade later, karmic justice was served and Tata acquired Ford’s Jaguar and Land Rover.

Tata has consistently been India’s pride by standing up to Western competitors, by designing and manufacturing India’s first indigenous car, Indica, and by running a highly profitable global enterprise.

Given its track record, it could very well be the right candidate for the job. However, Taiwanese expertise in manufacturing semiconductor chips for the world should not be discounted. A collaboration between Indian enterprises, such as Tata Sons, and the Taiwanese behemoth Taiwan Semiconductor Manufacturing Company (TSMC) could provide a head start to India’s high-technology manufacturing story. For Taiwanese manufacturing, partnering with a highly successfully Indian conglomerate, such as Tata, could prevent hiccups, like the ones it experienced with Wistron and Foxconn.

Learning From The Mobile Handsets Story

A testament to the Modi administration’s success with ‘Make in India’ is the manufacturing of mobile handsets for Indians in India. In 2014, just over 50 million mobile handsets were made in India, making up 19% of its domestic demand; in 2020, around 260 million mobile handsets were made in India, making up 96% of domestic demand.

However, this did not constitute true indigenisation as it was reliant on international suppliers for the components that went into each mobile handset, such as semiconductor chips.

Competing with mainland China will require indigenisation at every step in the supply chain and moving up in the value chain. And this will be possible without relying on Western conglomerates that have neglected and humiliated Indian enterprises in the past.

India using tools of economic statecraft and its private sector to foster better relations with the most vibrant democracy in Asia will, in turn, help it attain self-sufficiency, take a lead in high-tech manufacturing, and prevent supply chain bottlenecks in the future.

If the Ministry of External Affairs using diplomatic channels to secure semiconductor chips was a first step in meshing foreign policy and industrial policy, partnering with Taiwan to move forward on the goal of ‘Aatmanirbhar Bharat’ can be the next.

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INS Arihant’s Nuke-Capable K-4 Submarine-Launched Ballistic Missile ‘Ready To Roll’

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INS Arihant’s Nuke-Capable K-4 Submarine-Launched Ballistic Missile ‘Ready To Roll’


NEW DELHI: India tested its nuclear capable K-4 submarine-launched ballistic missile (SLBM), designed to have a strike range of 3,500 km, for the second time in six days on Friday. The missile test, as the one conducted on January 19, was undertaken from an undersea platform in the shape of a submersible pontoon off the coast of Andhra Pradesh according to a report by Rajat Pandit of TOI.

The solid-fuelled K-4 missile is being developed by DRDO to arm the country’s nuclear-powered submarines in the shape of INS Arihant and its under-development sister vessels. INS Arihant, which became fully operational in November 2018 to complete India’s nuclear triad, is currently armed with the much shorter K-15 missiles with a 750 km range.

“The K-4 is now virtually ready for its serial production to kick-off. The two tests have demonstrated its capability to emerge straight from underwater and undertake its parabolic trajectory,” said a source.

India has the land-based Agni missiles, with the over 5,000-km Agni-V inter-continental ballistic missile now in the process of being inducted, and fighter jets jury-rigged to deliver nuclear weapons. But INS Arihant gives the country’s deterrence posture much more credibility because nuclear-powered submarines armed with nuclear-tipped missiles are considered the most secure, survivable and potent platforms for retaliatory strikes.

Once the K-4 missiles are inducted, they will help India narrow the gap with countries like the US, Russia and China, which have over 5,000-km range SLBMs. The K-4 missiles are to be followed by the K-5 and K-6 missiles in the 5,000-6,000 km range class.

The 6,000-ton INS Arihant, which is propelled by an 83 MW pressurised light-water reactor at its core, in turn, is to be followed by INS Arighat, which was launched in 2017. The next generation of nuclear submarines, currently called S-4 and S-4*, will be much larger in size.





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After Upgradation, Sukhoi Su-30MKI Indigenisation To Reach 78%

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After Upgradation, Sukhoi Su-30MKI Indigenisation To Reach 78%


India has received clearance to upgrade 84 Sukhoi Su-30MKI fighter jets, which will result in 78% indigenization after the upgrade

In a significant step towards bolstering its military might with indigenously developed technology, India is poised to witness its Russian-origin Sukhoi Su-30MKI fighter jets evolve into a domestic platform. Speaking at a recent lecture.

The upgrade program is being led by Hindustan Aeronautics Limited (HAL) in partnership with the Indian Air Force and other partners. The upgrade is expected to cost US$7.5 billion.

The Defence Acquisition Council (DAC) granted Acceptance of Necessity (AoN) for the upgrade. The upgrade is part of India’s efforts to improve the capabilities of its primary fighter aircraft, it refers to as the “Super Sukhoi”.

This initiative is a part of a larger effort by the Indian Air Force to modernize its ageing fleet. Air Chief Marshal Chaudhari asserted the critical role of an offensive air force as demonstrated in current global conflicts and emphasized India’s move towards an indigenized arsenal. To this end, the IAF has been proactive, from upgrading its Mirage 2000 to enhancing its MiG-29 fleet.

In summary, the IAF’s commitment to updating their combat forces with the latest technology, including shifting to fifth-generation fighter jets, ensures operational preparedness and a strong deterrence capability. The gradual indigenization of its air fleet marks a pivotal shift in India’s defence landscape, reducing dependency on foreign imports and fostering technological sovereignty.





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Akash Weapon System Exports For The Armenian Armed Forces Gathers Pace

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Akash Weapon System Exports For The Armenian Armed Forces Gathers Pace


According to unconfirmed reports, Armenia is a top contender for an export order for Akash SAM system manufactured by Bharat Dynamics Limited (BDL).

While there is no official confirmation because of the sensitivities involved, documents suggest that the order for the same has already been placed the report further added.
There are nine countries, in turn, which have shown interest in the indigenously-developed Akash missile systems, which can intercept hostile aircraft, helicopters, drones and subsonic cruise missiles at a range of 25-km. They are Kenya, Philippines, Indonesia, UAE, Bahrain, Saudi Arabia, Egypt, Vietnam and Algeria reported TOI.

The Akash export version will also be slightly different from the one inducted by the armed forces. The 100-km range air-to-air Astra missiles, now entering production after successful trials from Sukhoi-30MKI fighters, also have “good export potential”, said sources.

Akash is a “tried, tested and successfully inducted systems”. Indian armed forces have ordered Akash systems worth Rs 24,000 crore over the years, and MoD inked a contract in Mar 2023 of over Rs 9,100 crores for improved Akash Weapon System

BDL is a government enterprise under the Ministry of Defence that was established in 1970. BDL manufactures surface-to-air missiles and delivers them to the Indian Army. BDL also offers its products for export.

Akash Weapon System

The AWS is a Short Range Surface to Air Missile (SRSAM) Air Defence System, indigenously designed and developed by Defence Research and Development Organisation (DRDO). In order to meet aerial threats, two additional Regiments of AWS with Upgradation are being procured for Indian Army for the Northern borders. Improved AWS has Seeker Technology, Reduced Foot Print, 360° Engagement Capability and improved environmental parameters.

The project will give a boost to the Indian missile manufacturing industry in particular and the indigenous defence manufacturing ecosystem as a whole. The project has overall indigenous content of 82% which will be increased to 93% by 2026-27.

The induction of the improved AWS into the Indian Army will increase India’s self-reliance in Short Range Missile capability. This project will play a role in boosting the overall economy by avoiding outgo of precious foreign exchange to other countries, increasing employment avenues in India and encouraging Indian MSMEs through components manufacturing. Around 60% of the project cost will be awarded to the private industry, including MSMEs, in maintaining the supply chain of the weapon system, thereby creating large scale of direct and indirect employment.





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