New Delhi [India], November 18 (ANI): India’s ambition to build a strong semiconductor and advanced technology manufacturing base is a “great strategy,” but its long-term success will depend on enabling the full ecosystem to grow with less red tape and stronger industry collaboration, said Rakhee Chachra, Global Leader for Telecom, Media and Entertainment at the IBM Institute of Business Value.
Speaking to ANI on the sidelines of the 22nd India-US Economic Summit, Chachra said India’s semiconductor vision is a crucial step toward reducing supply-chain vulnerabilities and improving cost efficiency.
“Being able to develop things in-house is always a great start because then you take away the supply-chain issue and the cost issue,” she said. However, to translate this vision into sustained industry growth, she stressed that India must focus on building a collaborative ecosystem rather than isolated capabilities.
“It’s a great start, but we need to create an environment where we cut the red tape and provide everyone in the ecosystem an opportunity to grow, advance and work together,” she added.
Chachra noted that while companies like NVIDIA dominate the global chip-design landscape, firms such as IBM play essential roles in complementary areas including quantum computing, networks, storage and power systems. India’s semiconductor strategy, she said, will only succeed if partners across the entire value chain have the space to innovate and participate fully.
On the broader theme of digital innovation, she said India is at an inflection point and does not need to replicate Silicon Valley to achieve success. Instead, the country can build on its strong public digital infrastructure.
“If you look at India, our public digital infrastructure processes about 100 billion transactions per month through UPI. That already shows we have a system that is open, trusted, reliable and scalable, and many countries are reviewing it,” she said.
Chachra added that the next major step is transforming these digital rails into AI-native infrastructure by integrating identity systems, consent frameworks and AI assistants to support small businesses, farmers and citizens. “This is not far away — it is doable and practical,” she said.
On India-US technology cooperation, she emphasized that both nations bring complementary strengths that can yield globally relevant solutions. “One brings innovation of models and architecture, and the other brings the ability to deploy at scale in a cost-efficient manner. When you combine these two, you get a real live lab for AI-native architecture.”
Addressing concerns over brain drain, she described it as a natural cycle driven by opportunity. However, she believes India is poised for a reverse flow if it strengthens infrastructure, academia and overall quality-of-life conditions that make people “want to live and work here.”
Commenting on tariff tensions between India and the US, Chachra said the situation is “very political and short-term,” with the greatest impact felt by small businesses. She expressed confidence that the issue would stabilize, adding, “Things will settle down… I don’t think it defines the overall relationship. No relationship survives without equal respect and understanding.” (ANI)
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