The global tech battle for artificial intelligence, chip fabrication and talent is turning the tide towards India…
The global power struggle has slowly shifted from economic to geopolitical. With artificial intelligence research, semiconductor manufacturing and engineering talent at the heart of it, the United States and China are caught up in a race for technological superiority at this point.
This has led to tighter restrictions for tech trade and research and national alliances are slowly changing. In this reshaping global ecosystem, India can sense an opportunity.
India has an unmatched scale of tech talent at its disposal. Along with this, an expanding digital landscape as well as the country’s geopolitical positioning among its peers has helped India step up from being a bystander to a critical player in the global tech power struggle.
Why the US-China Rivalry is about more than Trade
Currently, foundational technology is the hot topic for the rivalry between the two global superpowers. AI models, chip fabrication, cloud infrastructure and engineering skillset have moved from being commercial assets to national assets.
By putting export controls on chips and restrictions on AI research collaboration, a previously global tech ecosystem is now increasing fragmented. There is a lot more scrutiny over any sort of technological transfers between countries. This means that companies have to choose sides, restructure their supply chains and relocate where innovation happens.
This fragmentation has created gaps and opportunities for other countries that can offer scale without strategic risks.
Why India has a Strategic Advantage
One thing India has always had at its disposal is human capital. With millions of engineers and data scientists and strong connections to Western as well as Asian tech ecosystems, India has a rare middle ground.
Unlike smaller countries that are tech hubs, India can offer scale. Unlike China, India is viewed as geopolitically safer by Western countries. And unlike the US, India offers lower costs and a rapidly expanding domestic market.
This is perfect for global R&D centres, semiconductor design, AI model training and advanced engineering services. The rise of Global Capability Centres (GCCs) across several Indian cities is a clear reflection of this tectonic shift.
What is India’s Next Big Test?
India has always excelled at software and services but the shift is now towards hardware, manufacturing and compute infrastructure. Central to this competition is semiconductor research and development.
India is pushing hard to build a domestic semiconductor ecosystem via incentives, partnerships and fabrication projects. This ecosystem is a bid to establish strategic autonomy as well as economic growth. There are also parallel investments being made in AI infrastructure and cloud capacity to move up the value chain.
But success hinges on reliable supply chains, attracting specialised expertise and avoiding over-reliance on any single global bloc. These would be key to execute at scale.
What is the Risk that India faces?
Great opportunity can sometimes bring great risks as well. By attracting other countries with our talent and infrastructure, India risks being sidelined as a backyard for innovation without staying in control of the outcome and impact.
Data sovereignty, intellectual property and long-term capability building will go a long way in deciding whether India becomes a global tech superpower or an indispensable but dependent partner. The policies that are made, the funds spent in research and a strong public-private collaboration will determine if India stay in control of the situation.
The Last Word
The global tech power struggle has clearly created a window of opportunity for India. This is a chance not just to influence the market but the future of technology as well.
Whether India remains a neutral hub, becomes a major global player or a service provider is all in the hands of the companies and the policy makers. How this pans out remains to be seen!
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