Going into this level of prescription is indeed futile. But political will is very important and there is a lot Government can do to boost the semiconductor industry (training and education, preferential terms for local products especially with Government contracts, financial incentives for local companies etc.)
the electronics production is very important for any country. Now China is holding its big share. Competing the cost of production with China is a real great challenging task. The Govt of India needs a strong intelligent calculative speculative inventional enterprenual long term policies to become successfull.
"The hope is to grow production in India from about $20 billion in 2009 to a large but unspecified target that includes growing chip design in India to $55 billion and growing tech exports to $80 billion. India's current chip design export revenue is about $7.5 billion." How does the numbers come from?
It makes feel very much like China when they said they would like to develop something. Usually this kind of development is not healthy. I agree with @seaEE that better internal infrastructure (including railways, roads, electricity and water supply) and law enforcement is way more important. Otherwise this will only become a backdoor to corruption.
Should government be that deeply involved, other than ensuring the freedom of enterprise, the availability of education, and the maintaining of an internal infrastructure that allows for mobility and the conducting of business?
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