The Indian semiconductor market is expected to reach US$55 billion by 2026, with over 60 percent of the market driven by the smartphones and wearables, automotive components, and computing and data storage industries, as per the Deloitte report. India demonstrates a huge growth potential in the semiconductor manufacturing industry and is likely to explore allies across the globe for mutual trade and partnership in the segment. With an aim to fulfill its semiconductor industry’s ambition, India is also seeking foreign direct investments (FDIs) to bridge the gap between manufacturing know-how and technological expertise.
Bilateral Trade Partnership Between India and Russia:
Currently, the semiconductor manufacturing industry is concentrated across South Asian countries such as Japan, Taiwan, and South Korea. Besides these countries, considering the current global trade partnerships, Russia can also become India’s trusted partner in providing technological excellence to boost the growth of the semiconductor manufacturing industry. This further provides an opportunity for Russia and India to strengthen their bilateral collaboration in the global semiconductor ecosystem through various projects and tie-ups.
Russia is rich in its technological expertise and India demonstrates its strength in manufacturing capabilities. By sourcing the necessary raw materials, tech-savvy design, and development capabilities from Russia combined with India’s production abilities, India and Russia can become the world’s next superpowers in the tech-innovation segment.
Today, Russia has become India’s fifth-biggest trading partner and a trusted and seamless bilateral trade partnership between the two countries can create inroads across many industries.
Recognizing the future growth potential of the semiconductor manufacturing industry in Russia, Polymatech Electronics, India’s first Semiconductor Chips Manufacturer is planning to foray into the Russian market with its industry expertise. With this, the company is aiming to gain recognition for India on a global scale in the field of manufacturing prowess.
Technological Alliance and its Need:
In today’s global economy, competition between technological standards, platforms and ecosystems is becoming increasingly acute. Although the overwhelming majority of these come from the United States, China is continuing to build its own technological space, as it sets out its claim for global leadership. Currently, a narrow group of monopolies dominate the high-tech market. For many countries, protecting political and economic sovereignty means looking for partners who can help them break free from the clutches of digital monopolies.
India and Russia with their share of expertise can develop tech solutions together on the basis of trust and partnership. With this, India and Russia could become leaders of a non-aligned tech movement. As tech superpowers, India and Russia can provide high-tech-driven solutions in the semiconductor industry for the rest of the world.
Scope for Business growth in Russia and SPIEF 2023:
The current economical and political scenarios have created a unique opportunity for countries such as India to do business in Russia. The majority of US and European companies have significantly reduced the volume of their activities in the Russian market, which has formed a vacant space for Indian companies to start their business operations across sectors such as IT, Healthcare, Automobile, Manufacturing, and more. This change in Russia’s trade and economic rein has shifted its focus to the Eastern market for business growth opportunities. Today, Russia is undertaking many strategic initiatives to attract investment and business opportunities from other countries, especially from India into the Russian market. And, one such global initiative, ‘The St. Petersburg International Economic Forum’ (SPIEF) provides a platform for countries across the globe to come together and demonstrate their bilateral trade possibilities with Russia.
The St. Petersburg International Economic Forum (SPIEF) is a unique event in the world of business and economics. SPIEF has been held since 1997, and since 2006, it has been held under the auspices of the President of the Russian Federation, who has also attended each event. Over the last 24 years, the Forum has become a leading global platform for members of the business community to meet and discuss the key economic issues facing Russia, emerging markets, and the world as a whole. The 26th St. Petersburg International Economic Forum is set to take place on 14–17 June 2023 that offers a golden opportunity for all Indian companies to participate and showcase their sectorial expertise with the intention to set up businesses in Russia.
Source- Business Standard