India Clears ₹4,600 Crore for Four New Semiconductor Projects Across Three States
The Union Cabinet has approved four new semiconductor manufacturing projects worth about ₹4,600 crore under the India Semiconductor Mission (ISM), expanding the country’s chip ecosystem to Odisha, Punjab, and Andhra Pradesh. Together, these facilities are expected to generate over 2,000 direct skilled jobs and many more indirect opportunities, taking the total number of ISM-supported projects to 10 with cumulative investments of ₹1.60 lakh crore across six states. The new units include a Silicon Carbide fabrication facility and an advanced glass substrate packaging plant in Odisha, an expanded semiconductor device plant in Punjab, and a system-in-package unit in Andhra Pradesh, catering to industries ranging from defence and automotive to consumer electronics and renewable energy.
For international semiconductor players, the move signals India’s growing readiness as a strategic manufacturing hub beyond its traditional strengths in design and software. With collaborations already involving UK, US, and South Korean companies, the projects offer opportunities for foreign firms to tap into a large and fast-growing electronics market while aligning with India’s push for supply chain diversification and reduced global dependence on East Asia.
Editor’s Note: India has approved ₹4,600 crore for four new semiconductor projects in Odisha, Punjab, and Andhra Pradesh, expanding its chip ecosystem under the India Semiconductor Mission and creating over 2,000 skilled jobs. These strategic facilities, spanning fabrication to advanced packaging, signal India’s emergence as a global manufacturing hub and offer foreign firms opportunities to tap into its growing electronics market and diversify supply chains.
MeitY Revives National Data Centre Policy to Expand Capacity and Attract Global Investments
The Ministry of Electronics and Information Technology (MeitY) has revived consultations on its long-pending National Data Centre Policy, aiming to boost India’s data storage and processing infrastructure amid surging demand from AI-driven workloads. First drafted in 2020, the updated framework proposes four dedicated Data Centre Economic Zones (DCEZs) with plug-and-play infrastructure, reliable power, and high-speed connectivity, alongside a single-window clearance system to cut approval delays. The policy also seeks to expand capacity beyond metro hubs like Chennai, Hyderabad, and Delhi NCR by incentivising growth in tier-2 and tier-3 cities, ensuring balanced distribution and improved disaster resilience.
For international cloud providers, AI firms, and hyperscale operators, the policy signals India’s intent to position itself as a global data hub. Incentives under discussion include tax breaks, infrastructure status for large facilities, and support for renewable-energy-based operations, coupled with a push for greater use of locally manufactured hardware. For non-Indian companies, this presents both an opportunity to scale operations in a rapidly expanding market and a requirement to adapt to local manufacturing and sustainability mandates.
Editor’s Note: MeitY has revived its National Data Centre Policy to expand India’s data infrastructure, proposing dedicated economic zones, streamlined approvals, and incentives to attract global AI and cloud investments. The policy aims to decentralize capacity beyond metro cities, promote renewable-powered operations, and encourage use of locally manufactured hardware, positioning India as a competitive global data hub.
India’s IT Exports Surge 12.5% in FY25, Driven by STPI Expansion Beyond Metros
India’s IT exports rose 12.48% to US$224.4 billion in FY25, rebounding strongly from last year’s modest 2.83% growth despite global economic headwinds. The surge was fueled by the government’s Software Technology Park of India (STPI) scheme, which has shifted focus beyond major metros to tier-2 and tier-3 cities. Exports from STPI-registered units touched ₹10.64 lakh crore (US$224.4 billion), with non-metro centers now accounting for the majority of its footprint and creating nearly 300,000 jobs outside traditional tech hubs. The sector’s resilience was underscored by Nasscom’s projection of US$283 billion in revenue for FY25, driven by strong demand from the US, a recovering BFSI sector, and expansion across telecom, retail, and healthcare.
For non-Indian companies, this growth reinforces India’s role as a critical global IT outsourcing hub, with nearly 90% of Fortune 500 firms relying on Indian tech services. The STPI’s decentralization offers new collaboration opportunities in emerging tech hubs across smaller cities, while startup incubation through Centers of Entrepreneurship opens doors for global venture capital and technology partnerships. At the same time, India’s push for domestic innovation and workforce upskilling in areas like generative AI signals both opportunities and competitive pressures for foreign players seeking to tap into the country’s vast talent pool and expanding digital infrastructure.
Editor’s Note: India’s IT exports surged 12.5% to US$224.4 billion in FY25, driven by the STPI’s expansion into tier-2 and tier-3 cities, which created nearly 300,000 jobs and broadened the sector’s footprint beyond traditional tech hubs. This growth reinforces India’s role as a global outsourcing leader and opens new opportunities for foreign firms in emerging innovation centers, while also signaling rising competition amid domestic advances in generative AI and digital infrastructure.
Moody’s Warns India’s Reliance on Russian Oil Could Clash With Export Growth Amid US Tariff Risks
Moody’s has cautioned that India’s heavy reliance on discounted Russian crude could undermine its manufacturing ambitions and export competitiveness as shifting US trade policies raise the risk of tariffs on Indian goods. Russian oil accounted for 35.5% of India’s crude imports in 2024, surging to $56.8 billion from just $2.8 billion in 2021, making India the second-largest buyer after China. While these purchases have helped contain inflation—now at a multi-year low of 2.1%—and narrow the current account deficit, a forced reduction in Russian oil imports could tighten global supply, drive up prices, and pressure India’s external balance. The ratings agency noted that India’s response to evolving tariff threats will shape its growth, inflation, and external stability in the coming years.
For non-Indian companies, the standoff carries significant implications. India’s role as a global manufacturing hub for electronics and other high-value sectors could be tested if tariff disputes or oil shocks erode its cost competitiveness. Multinationals sourcing from India may face supply chain disruptions or higher input costs, while energy market players could see volatility from any abrupt shift in Indian crude buying patterns. Moody’s expects room for compromise in ongoing trade negotiations, but warned that even a modest slowdown in US demand—India’s key export market—could ripple across global supply chains and investment flows.
Editor’s Note: Moody’s warns that India’s growing reliance on discounted Russian oil, while helping curb inflation and support its current account, could clash with export growth amid rising US tariff risks. A shift in crude sourcing or trade tensions may impact India’s manufacturing competitiveness, with potential ripple effects on global supply chains, multinational sourcing strategies, and energy market stability.
India, Philippines Seal Strategic Partnership to Boost Defence and Indo-Pacific Cooperation
India and the Philippines on Tuesday elevated their ties to a strategic partnership during a meeting between Prime Minister Narendra Modi and visiting President Ferdinand R Marcos Jr. in New Delhi. Marking 75 years of diplomatic relations, the two leaders unveiled a comprehensive action plan to deepen cooperation, especially in defence and security, which Modi described as a “symbol of deep mutual trust.” A commemorative postage stamp was also released to celebrate the milestone. Modi thanked Manila for condemning the April 22 Pahalgam terror attack and reaffirmed that both nations are united by shared values and a vision for peace, security, and prosperity in the Indo-Pacific region under India’s Act East Policy and ‘MAHASAGAR’ vision.
For non-Indian companies, the upgraded partnership highlights growing geopolitical alignment in the Indo-Pacific, where strategic stability is critical for global trade and investment. The stronger India-Philippines defence ties could open opportunities for international firms in defence manufacturing, maritime security, and infrastructure projects, while also reinforcing a rules-based order that benefits global supply chains dependent on secure sea lanes. The visit, Marcos Jr.’s first to India since taking office, underscores the region’s shift toward deeper cooperation to balance global power dynamics.
Editor’s Note: India and the Philippines have elevated their relationship to a strategic partnership, unveiling a comprehensive defence and security action plan during President Marcos Jr.’s visit to New Delhi. This deepening Indo-Pacific cooperation under India’s Act East Policy and ‘MAHASAGAR’ vision signals new opportunities for global firms in defence, maritime security, and infrastructure, while reinforcing regional stability and secure trade routes.
India Tops Global Generative AI Learning on Coursera With 2.6 Million Enrollments
India has emerged as the world’s largest hub for Generative AI learning, according to Coursera’s Global Skills Report 2025, with enrollments surging 107% year-on-year to over 2.6 million — the highest globally. With a total learner base now exceeding 31 million, India has also overtaken Europe in learner numbers on the platform, reflecting strong momentum in digital transformation and workforce skilling. Despite this scale, India ranks 89th worldwide in overall skills proficiency and mid-tier (#46) on Coursera’s new AI Maturity Index, underscoring both rapid adoption and the uneven readiness of its AI ecosystem. The report also highlights strong growth in professional certifications (+23% YoY), mobile-based learning (52% of access), and demand for software engineering skills like full-stack development and DevOps.
For non-Indian companies, these findings underline India’s dual role as a fast-scaling talent hub and a critical global workforce supplier. With India expected to contribute 24% of global workforce growth over the next decade, the skilling boom offers opportunities for multinationals to tap into a young, AI-savvy labor force. At the same time, gender disparities in tech adoption — with only 30% of GenAI learners being women — signal challenges that could affect inclusivity and talent availability. Global firms investing in India or sourcing talent from the country will need to adapt to this evolving skills landscape, leveraging partnerships in education, upskilling, and AI adoption to strengthen their competitiveness.
Editor’s Note: India leads the world in Generative AI learning with over 2.6 million enrollments on Coursera, reflecting rapid digital adoption and a growing talent pool, despite ranking mid-tier in overall AI maturity. For global companies, this surge presents opportunities to tap into India’s expanding, AI-savvy workforce, though challenges like gender disparity and uneven skill readiness remain key considerations.