India Set For Growth in Electronics Manufacturing, AI Race: Ashwini Vaishnaw

Union Minister Ashwini Vaishnaw on Wednesday expressed confidence in India’s growth trajectory in electronics manufacturing while speaking at the Rising Bharat Summit 2025.

"Every country which got into electronics manufacturing, they all started with the same process, be it South Korea or Vietnam. Most countries had a similar phase of starting from scratch. We're following the same trajectory that these countries followed initially. We're now at the components stage," Ashwini Vaishnaw said.

He highlighted that the sector has witnessed a 17 percent compound annual growth rate (CAGR) in manufacturing and a 20 percent CAGR in exports over the past five years, despite challenges posed by the Covid-19 pandemic. He added that the electronics manufacturing is now employing 25 lakh people which largely consist of women.

Addressing a question on whether Chinese smartphone makers like Vivo and Oppo could form alliances under India’s Production Linked Incentive (PLI) schemes, the minister said, "Any country, or company who wants to work in India have full freedom to work here. Companies usually want to enter JVs when they aspire to grow at a faster pace."

On the subject of artificial intelligence, Vaishnaw affirmed that India is on track to develop its own AI model. "Compute power and talent has given an edge to developers and startups," he said.

When asked if India is lagging in the global AI race, he remarked, "This is first chapter of AI boom and it has only recently become B2C where everyone is using AI. We are not late, we are in the race and will be among the top few countries to harness the power of the new tech."

Vaishnaw also shared a major update on India’s semiconductor ambitions, revealing that the country is set to produce its chips this year. "Plants are currently being set up and validation is under process. We will have a Made in India chip this year," he said.

Vaishnaw said that the Indian Railways will have three major changes in the next few years. "First, where we are today, safety will improve more significantly. There should be a further reduction of 80 percent in rail accidents. Second, capacity will increase, we're now the second country in terms of railways. Third, our trains ranging from Vande Bharat, Namo Bharat to the upcoming Bullet trains, tech will only enhance as new trains are inaugurated," he said.

He added that railways aim to provide affordable transport to the low-income and middle-income, saying India has one of the cheapest railways in the world.