- Context (ET): An indigenously made semiconductor chip is set for 2025-end launch, marking India’s structured entry into the Fourth Industrial Revolution.
About Fourth Industrial Revolution
- Digital Fusion: WEF defines Industry 4.0 as the integration of physical, digital, & biological domains.
- Tech Drivers: AI, IoT, and robotics constitute its core, transforming production and governance.
- Chip Backbone: Semiconductors underpin Industry 4.0 via automation, connectivity, & computation.
- Data Centrality: Big data underpins cyber-physical systems, enabling real-time decisions & innovation.
- Global Disruption: PwC projects $15 trillion GDP impact, transforming competitiveness worldwide.
India’s Competitive Advantages
- Youth Workforce: Over 65% Indians below 35 provide a demographic dividend, conditional on skills.
- Market Scale: 900+ million internet users accelerate the adoption of digital & emerging technologies.
- Design Strength: India contributes 20% global chip design workforce, boosting domestic innovation.
- Startup Ecosystem: DPIIT recognised ~1.6 lakh startups, driving AI and robotics breakthroughs.
- Strategic Partners: Quad technology group bolsters semiconductor resilience & supply-chain security.
India’s Structural Constraints
- Infra Gap: Absence of 300-mm fabs constrains domestic capacity for advanced semiconductors.
- Skill Deficit: Projected one-million AI talent shortfall by 2026 threatens India’s digital competitiveness.
- Import Dependence: Over 90% chips are imported, exposing the economy to supply disruptions.
- Regulatory Lag: Digital Personal Data Protection Act 2023 lacks AI ethics, weakening accountability.
- Inequality Risk: The World Bank estimated 69% Indian jobs face automation-driven displacement risk.
Government Interventions
- Indian Semiconductor Mission: Launched in 2021, it aims to strengthen the semiconductor ecosystem.
- PLI Scheme: Incentivises electronics production, boosting India’s manufacturing competitiveness.
- Digital India: 2015 programme expands connectivity, accelerating adoption of emerging technologies.
- Skill Development: PMKVY 4.0 includes AI and robotics, enhancing workforce preparedness.
- Quantum Mission: ₹6,000 crore programme supports quantum research, strengthening sovereignty.
- Atal Innovation Mission: AIM promotes research, incubation, & start-ups driving 4IR technologies.
- National AI Portal: The portal disseminates knowledge, fostering awareness and policy innovation.
Way Forward
- Infrastructure: Develop robust 5G, logistics, and electricity to sustain advanced technologies.
- Skilling: Expand AI and robotics training through IndiaAI Mission and PMKVY.
- Governance: Enact binding AI laws ensuring accountability, transparency, and ethical deployment.
- Alliances: Strengthen Quad cooperation & pursue friend-shoring for resilient technology supply chains.
- Inclusion: Provide MSMEs with digital tools and financial access, ensuring participation in 4IR.
India’s indigenous semiconductor launch and strategic 4IR initiatives position the nation as a global technology leader, enhancing innovation, manufacturing, and digital sovereignty. Strengthened infrastructure, skilling, and international partnerships will ensure inclusive, resilient, and future-ready growth.
Reference: The Economic Times
PMF IAS Pathfinder for Mains – Question 318
Q. India has the largest young workforce in the world, but employability remains low. Examine the implications of this paradox for India’s readiness in the era of Industry 4.0, particularly in terms of global competitiveness and integration. (250 Words) (15 Marks)
Approach
- Introduction: Write a brief introduction about the employment paradox with current facts.
- Body: Examine the implications of this paradox for India’s readiness in the era of Industry 4.0 and suggest policy measures.
- Conclusion: Emphasis on a multi-pronged approach for India’s readiness in the era of Industry 4.0.
