India Plays Catch-Up in AI and Chips Race with China's Manufacturing Might

Apr 25, 2025
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Summary

While China has surged ahead in deep tech innovation like AI and semiconductors due to its manufacturing prowess and heavy R&D investment, India is now playing catch-up by increasing funding and policy support for AI and domestic chip manufacturing initiatives.

Key Points

  • India lags behind China in deep tech innovation like AI and semiconductors due to historical focus on services over manufacturing, lower R&D investment, and brain drain of top talent.
  • India is increasing investment and policy support for AI and semiconductor development to catch up globally, including initiatives like IndiaAI Mission and incentives for domestic chip manufacturing.
  • China's early focus on manufacturing prowess, heavy R&D spending by tech giants like Huawei, and retaining top AI talent within its ecosystem has given it an edge over India in deep tech innovation.

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