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India needs big push in AI, chips to compete with US, China, says CEA
Speaking at the 2025 Emkay Confluence in Mumbai, Nageswaran cautioned that while trade-related issues are important, they should not overshadow other critical challenges, reported NDTV Profit.
Lagging behind global leaders
The US dominates AI research and chip design through companies like Nvidia, Intel, and AMD, while China has expanded chipmaking under state-backed initiatives. India continues to rely heavily on imports for chips and AI hardware, though programmes such as the Semicon India initiative aim to strengthen domestic manufacturing.
Key challenges for the sector
Nageswaran identified energy transition, energy security, AI's economic impact, and sector-wide collaboration as the main challenges. He called for close coordination between public and private sectors, with resources pooled to meet national objectives. He urged the private sector to look beyond quarterly results and commit to long-term national priorities.
Policy direction and growth outlook
The CEA said public policies must balance investment promotion, deregulation, and economic activity. He attributed last year's slowdown to tight credit and liquidity constraints and said the 'substantial' middle-class tax cut in the FY26 Budget could spur growth.
Urban consumption trends
Nageswaran also noted a shift in urban consumption from listed to unlisted firms and highlighted the need for better data on services consumption.
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