Lok Sabha Question No. 4881 (UNSTARRED), answered on 2025-04-01
Subject: Impact of US Tariffs
Ministry: COMMERCE AND INDUSTRY
Asked by: Shri Haribhai Patel

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 4881 ANSWERED ON 01/04/2025

## IMPACT OF US TARIFFS

## 4881.  SHRI HARIBHAI PATEL:

Will the Minister of COMMERCE & INDUSTRY ( वाणिज्य एवं उद्योग मं त्री ) be pleased to state:

(a) the details of agreements and collaborations Government has entered into in the fields of AI, semiconductor chips and biotechnology to mitigate the impact of US tariffs;

(b) the potential benefits of these partnerships for India's technological and industrial growth, particularly in the context of global supply chain disruptions;

(c) the expected impact of these tie-ups on India's domestic innovation ecosystem, manufacturing capabilities and export competitiveness; and

(d) the  measures  taken  to  reduce  India's  dependency  on  external  technology  sources  while fostering a resilient economic framework?

## ANSWER

## वाणिज्य और उद्योग मंत्रालय में राज्य मंत्री (श्री णिणिन प्रसाद)

## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI JITIN PRASADA)

(a) to (d) India  takes  appropriate  steps  to  foster  innovation  ecosystem  in  the  field  of  AI, semiconductor chips and biotechnology through collaboration with various countries including the US. During the 5th India-USA Commercial Dialogue, an MoU between India and USA to establish Semiconductor Supply  Chain  and  Innovation  Partnership  was  signed  which  is  aimed  to  enhance bilateral collaboration for advancing resilient semiconductor supply chains and leverage complementary strengths of the two countries.

The initiatives, inter alia, through increased collaboration between U.S. and Indian companies in the field  of  investments,  joint  ventures,  and  technology  partnerships,  are  aimed  at  mitigating  the impacts of supply chain disruptions through identification of near-term commercial opportunities and facilitate longer-term strategic development of semiconductor innovation ecosystems; promote talent  and  workforce  and  R&D  development,  create  enabling  environment  for  increased  crossborder trade and investment in the semiconductor ecosystem, facilitate business-to-business (B2B) collaboration between the U.S. and Indian semiconductor industries.

Further,  these  initiatives  are  likely  to  foster  domestic  innovation  ecosystem,  manufacturing capabilities  and  export  competitiveness  by  driving  scientific  advances  and  innovation  ecosystem; promoting research and innovation through the private sector to address priority- driven, solutionfocused research to benefit innovators, researchers and other stakeholders.

In  order  to  create  a  robust  semiconductor  ecosystem  and  reduce  India's  dependency  on  external technology sources while fostering a resilient economic framework, inter alia, Government of India has introduced Semicon India Programme with an outlay of Rs 76,000 crore which provides fiscal support for setting up of Semiconductor Fabs, Display Fabs, Compound Semiconductors / Silicon Photonics (SiPh) / Sensors (including Micro Electro-Mechanical Systems) Fab/ Discrete Semiconductor  Fab  and  Semiconductor  Assembly,  Testing,  Marking  and  Packaging  (ATMP)  / Outsourced Semiconductor Assembly and Test (OSAT) facilities in India. It also provides Product Design Linked Incentive and also Deployment Linked Incentive for incentivizing chip design.The programme has led to significant investments in the sector over last few years.

Further, to promote indigenous innovation, the Anusandhan National Research Foundation (ANRF) has been established for global positioning of India in key technology sectors and catalyse multiinstitutional,  multi-disciplinary  and  multi-investigator  collaboration  with  industry.  Besides,  Prime Minister Early Career Research Grant (PMECRG) scheme and MAHA Programme of ANRF have been launched for promoting indigenous research and development in the country. These schemes ensure providing proper resources and financial assistance to the scientists and researchers in their bids to carve out a niche at the global forum.

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