Latest news with #EmkayConfluence

Business Standard

India needs big push in AI, chips to compete with US, China, says CEA

Chief Economic Advisor (CEA) V Anantha Nageswaran on Wednesday stressed that India must significantly step up efforts in artificial intelligence (AI) and semiconductor manufacturing to compete with the United States and China. 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.