India's Semiconductor Boom: MeitY Secy on USD 2 Billion Digital Economy

Mumbai, Feb 28 (PTI) Domestic manufacturing of semiconductors is the next big space and many companies are expected to venture into this segment, a senior MeitY official said on Wednesday adding that a USD 2 billion digital economy is what India seriously needs.

S Krishnan, Secretary of Ministry of Electronics & Information Technology (MeitY), while speaking virtually at the India Digital Summit (IDS) 2024 said the digital economy is expected to grow at a faster pace in the next few years.

"Semiconductors is the other big space. More companies are likely to come into the space...Our interest in semiconductors is open," he said adding that in the next 5-10 years semiconductor manufacturing in the country is expected to come up in a big way.

About 20 lakh people are employed in the electronics manufacturing sector in the country and the government would like these jobs to go up to about 45 lakh, he added.

"We expect the digital economy to really grow at an increasing pace in the next few years. A USD 2 billion digital economy is what India seriously needs," Krishnan said.

When asked about governance, hygiene and compliance with law for digital economies, Krishnan pointed out that regulators, much like the public, recognized the necessity of regulation.

While balancing consumer protection and diverse requirements, regulations are thoroughly examined to ensure safeguarding of user information, he said.

In the tech sphere, consistent collaboration among regulators was crucial, he added.

Similarly, maintaining ongoing dialogue with companies on various IT aspects is essential, Krishnan stated adding that the second key aspect involves formulating regulations to ensure compliance.

On the proposed Digital India legislation, he said efforts were being made to enhance it with additional elements. The ministry is exploring ways to address a significant issue related to the idea and understanding of ideas, where different forms of control are in place, he said.

Some of these controls occasionally generate issues, emphasizing the need for regulation, Krishnan said.

This will be a key focus in the approach to cybersecurity, the MeitY Secretary said.