India Builds Strategic Semiconductor Capacity to Shield Economy

Economic Affairs Secretary Anuradha Thakur announced that the government is taking proactive steps to build capacity in strategic sectors, specifically semiconductors, to shield the national economy from an uncertain global environment. Speaking at the State Bank of India Banking and Economics conclave, Thakur characterized India as a stable economy capable of withstanding external headwinds.

This push for strategic resilience follows upgraded growth forecasts for India from international agencies, including the OECD, Asian Development Bank, S&P Global, and Fitch Ratings. Reserve Bank of India Deputy Governor Poonam Gupta noted that the Indian economy has performed exceptionally well despite facing multiple shocks.

Market analysts expect the Reserve Bank of India to raise its fiscal year growth forecast. Due to broadening inflationary pressures and recent actions by the US Federal Reserve, analysts also anticipate the central bank may implement its first interest-rate hike since early 2023.