Shri Piyush Goyal, Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles of India, is being interviewed by the media to discuss the trade relations between the EU and India. India will waive import duties on industrial products from four European countries over 15 years with an investment of US$100 billion, ending nearly 16 years of negotiations.
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India's Commerce Minister Piyush Goyal said in a one-on-one interview with CNBC in New York that India will produce its first chip within two years.
India's foray into the semiconductor industry comes as more and more U.S. chipmakers are eyeing India. NVIDIA, AMD, Micron is one of the U.S. companies that has pledged to expand in the country.
“I am in regular contact with the CEO of Micron and they are making good progress,” Goyal said.
Goyal added that Indian giant Tata and other domestic companies are working hard to make India's semiconductor dream a reality.
Without the expertise of companies like TSMC, India is unlikely to be able to manufacture cutting-edge chips (British Semiconductor) and Samsung make some of the most advanced chips in the world.
“It's a tough job, but we have the talent, we have the skills,” Goyal said. The minister mentioned a recent trip to Silicon Valley, where he visited several U.S. semiconductor companies and “saw a large number of Indians working on the shop floor (and) on the management team,” Goyal recalled.
The minister, who has led the expansion of U.S. business under Prime Minister Narendra Modi, believes India will be able to deliver the first wafer by 2026-2027.
Apple has found success in India as it looks to diversify its supply chain away from China. Goyal said that 14% of the world's iPhones are made in India, and this number is “expected to grow.” Over the past two years, Apple has increased its assembly operations in China while expanding its retail operations to attract new iPhone buyers. Goyal said that Indian consumers are increasingly choosing more expensive iPhones.
Apple has also begun producing other products in China, including iPads, AirPods and Apple Watch. “They are increasing production,” Goyal added.
India's Commerce Ministry said Apple's expansion efforts in India have brought 150,000 jobs to Indian manufacturing plants, making it the country's largest employer in the electronics industry. An Apple spokesman could not immediately be reached for comment.
Apple's entry into India comes at a time when the Chinese market continues to face growth challenges.
Regarding the recent optimism surrounding China's economic situation and its latest stimulus measures, Goyal said India's success does not depend on China's troubles.
“India… is not dependent on China. We rely on our capabilities, our capabilities, and we believe our products are far superior to China's,” Goyal said.
Goyal met with a number of Wall Street investors on Monday, including BlackRockWarburg Pincus and KKR. Goyal said nearly all U.S. private equity firms are looking to build and develop data centers across the country.
Google, Microsoft and NVIDIA is one of the tech companies bringing artificial intelligence expertise to India, a move welcomed by the Modi government. But analysts warn that India must continue to grapple with larger problems, including poor infrastructure, bureaucracy and red tape that have slowed expansion plans.