• Modi’s India Semiconductor Mission is a nodal agency dedicated to strengthening India’s semiconductor industry, promoting international cooperation, and boosting design capabilities. 
• A decade of reforms easing business has enabled Modi to boost international partnerships for investing in India’s semiconductor sector, supporting his ‘Self-Reliant India’ campaign.
• Modi’s India Semiconductor Mission reflects a global pattern of industrial policies following the disruptions of the last few years, as manufacturing becomes critical for growing economies like India’s.

Why is Modi HOT? 

Answer: The success of Modi’s India Semiconductor Mission has attracted substantial foreign investment commitments for the construction of semiconductor facilities in India. 

Almost 5 years after its launch, the India Semiconductor Mission (ISM) has attracted significant investment from foreign companies like Foxconn and Micron Technology, establishing India as a prime location for semiconductor manufacturing. Launched in December 2021 by Prime Minister Narendra Modi, the ISM is a nodal agency under the Ministry of Electronics and Information Technology that reviews, approves, and supports semiconductor projects through various government incentives. Its goal is to develop India’s semiconductor industry, foster international cooperation, and boost design capabilities.

After the global supply chain shock caused by the 2020 pandemic lockdown, the ISM surged in response to Modi’s efforts to position India as a growing player in the semiconductor industry. As of August 2025, the ISM has approved 10 construction projects across the supply chain, totaling $18 billion in investment. 

What is changing Modi’s heat level? 

Answer: Modi’s ability to attract international investments through his legislative reforms has increased India’s capabilities to form strategic partnerships with world players. 

The ISM has demonstrated that Modi and the Indian government can respond to the rigidity of the ‘ease of doing business’ by implementing a decade of reforms in the manufacturing industry. 

The government has introduced further reform concessions through its annual Business Reform Action Plan. By promoting a business-friendly environment, Modi has paved the way for foreign companies to invest in India. Improving the ‘ease of doing business’ is crucial to the growth of the Indian economy, particularly in industries such as semiconductors, where skilled labor supports initiatives like the ISM. These reforms give India a significant momentum to seek new partners amid recent changes in trade dynamics. Despite the U.S. imposing 50% tariffs on Indian products for a couple of years, Modi has acquired partners who share the view of developing their own industries. 

In 2024, he met with his Singaporean counterpart, Lawrence Wong, to sign a Memorandum of Understanding (MoU) for the India-Singapore Semiconductor Ecosystem Partnership. The partnership and the MoU aim to solidify the commitment to support India’s semiconductor industry growth while giving Singapore’s semiconductor supply chain and companies access to the fast-growing Indian market. 

Similarly, in August this year, Modi met with the Japanese Prime Minister Shigeru Ishiba to discuss several concessions of a strategic alliance for each country’s semiconductor industries. During their talks, Modi and Ishiba underscored their commitments to the India-Japan Semiconductor Supply Chain Partnerships—a policy built on two other joint initiatives based on digital development and industrial competitiveness. Engaging with nations with established semiconductor industries helps him develop India’s semiconductor industry by leveraging their growing markets and talent pools in exchange for access to partners’ intellectual property and existing technologies. For Modi, these partnerships showcase his ability to engage in diplomatic conversations and to continue creating opportunities that advance India’s mission to become the third-largest economy. 

What is driving Modi?

Answer: The semiconductor industry’s increasing importance has become a key goal in Modi’s agenda as he seeks to position India as a global powerhouse.

Modi envisions a self-reliant India and a technology hub, reflecting his commitment to initiatives like the ISM to boost competitiveness and manufacturing. Specifically focused on semiconductors, Modi believes that these not only have economic importance but are also key to technological advancement and national security. 

A potential national security dilemma is the dispersion of their talent pool. India holds 20% of the world’s design talent, showing the highly advanced human capital that works as a foundation for the semiconductor industry. To retain its talent pool and cater to upcoming foreign investments, the government launched initiatives such as the Chips to Startup scheme to train engineers to meet the demand of chip makers and align with international standards. 

Moreover, to successfully grow its semiconductor industry, Modi aims to reduce reliance on imports and boost domestic capabilities through policies like the ISM. Finally, given that India is one of the world’s biggest technology consumers, the development of the ISM addresses both its domestic demand and the industry’s supply capabilities.

What does this mean for you? 

Answer: Modi’s push for India to become a semiconductor powerhouse highlights a shift in trading dynamics and international relations.

 The ISM shows a clear shift in global influence and trade, as rising powers increase their industrial capabilities. ‘Make in India’ and, more specifically, the ISM are policies that parallel those of countries like China’s ‘Made in China 2025’ and Japan’s supply chain plans to grow their manufacturing industries. These policies target manufacturing choices based on incentives, infrastructure, and markets. The growing development of industrial policies by countries reflects a structural shift aimed at amplifying domestic industrial capabilities to meet increasing market competition.