Beyond the Manifestos, Technology Challenges for India’s Next Government

Context

Across major global economies, mastering the technological revolution is paramount, from China to the US. India needs to innovate to stay competitive amidst this trend.

Election 2024 Discourse

• Indian Tech Policy: Technology policy may not be a prominent topic in India’s current election discourse.  
  • However, the incoming government in Delhi will face significant challenges stemming from rapid technological advancements.
• Global Tech Challenges: These challenges include navigating the impact of technological changes on major economies, geopolitical rivalries, and global governance of key areas such as artificial intelligence, space industrialization, and the bioeconomy.

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China’s Deep Tech Push

• Campaign for Mastering New Productive Forces: The Chinese Communist Party (CCP) is spearheading a campaign to master the “new productive forces.”
  • This campaign is pivotal to Beijing’s ambition of surpassing Washington in advanced science and technology production and ascending to the top of the global power hierarchy.
• Government Support: Li Qiang pledged a “new leap forward” in supporting advanced technology sectors with priority areas electric vehicles, new materials, commercial spaceflight, quantum technology, and life sciences.
• Shift to Technology-Intensive Economy: The concept of transitioning from labor-intensive to technology-intensive production has been endorsed for some time.
  •  Previous leaders like Hu Jintao emphasized “scientific development” and the importance of technology and innovation for societal advancement.
• Strategic Objective: China aims for full control over the new productive forces to reduce reliance on foreign technologies. 
  • China has achieved dominance in sectors like solar panels and battery storage but trails the US in semiconductor production and generative AI innovation.

Technological Investment of the West

• Biden Administration’s Focus: The administration achieved bipartisan support for three significant pieces of legislation:
  • The Infrastructure Investment Act.
  • The CHIPS Act.
  • The Inflation Reduction Act.
• Limiting Support for Chinese Technological Development: The Biden administration aims to restrict US capital support for Chinese technological development. Measures include limiting advanced technology exports from the US and its allies to Beijing.
• Formation of Global Technology Coalitions: The US is forging new technology coalitions with allies, such as the Quadrilateral forum with Australia, India, and Japan.
• • Additionally, the “Chip-4” alliance includes the US and leading semiconductor producers: Japan, South Korea, and Taiwan.
  • Bilateral partnerships in critical and emerging technologies are being established, including the iCET partnership with India.
• France’s Call for European Technological Sovereignty: French President Emmanuel Macron emphasized Europe’s need to reclaim a significant role in global technological power distribution.
• • He called for strengthening Europe’s “industrial and technological sovereignty” to close the gap with the US and China.
  • Macron advocated for substantial investments in AI, quantum computing, space, biotechnology, and new energy technologies like green hydrogen and nuclear fusion.

India’s Task – Beyond Manifestos

• Leveraging Technology for Development: Prime Minister has utilized digital technologies for service delivery and emphasized investments in renewable energy over the past decade.
  • A mission mode approach has been adopted to revive India’s semiconductor production, and strategies for accelerating India’s AI capabilities have been developed.
  • Technology has been a focal point of the government’s foreign policy, especially in building strategic partnerships with the US and Europe.
• Need for Sweeping Technological Overhaul: There is a need to significantly increase national expenditure on R&D and encourage greater private sector participation in research, development, and production of modern technologies.
• Modernization Imperatives: The existing S&T monopolies under government control are outdated for India’s goal of building a technology-driven economy.
  • Modernizing India’s technological foundation is crucial for economic and national security objectives.

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Conclusion

The next government must prioritize this agenda to ensure India’s inclusion in the global landscape of “new and high-quality forces of production.”