Re: We do significant value add in chip design but we only get salaries of our designers/reserchers and foreign companies (AMD, Qualcomm) keep all the Value Add; is there a way we can get more out of them. That is, we are the GCC capital of the world and they have significant operations in India can we use this as a leverage to get something out of them?? Not sure what: indigenisation of IP? invest some share of value add back in India? Of course, anything too stringent (like China) will be counterproductive but are there policy options??
The knowledge spillovers are real. What the government can do is to focus on the DLI scheme so that more employees of GCCs start their own firms. Unlike in software, this will need more than venture capital. Probably something like advance commitments besides a better DLI..
That apart, we should insist that value addition is estimated in India. That number itself will act as a leverage. Apart from that you can't ask a fabless firm to change its business model. You can use the leverage to get them to widen and deepen the work they do here.
This topic is the eternal clash between two moral principles: (1) Care (give to those worse off or in need) v/s (2) Fair (How/why is it OK to take from those who earned it?).
No easy answers to that, no math formula will ever "solve" it, and it is an emotive topic.
Re; India's techno-strategic approach towards China - perhaps, they're looking at medium-high yard and low fence? The Economic Survey does make a strong argument for attracting Chinese FDI to invest locally and then export to high demand markets of US and Europe from India.
Sure, there would still be restrictions on Tech but, considering that the Economic Survey specifically pointed out the case of Chinese EVs investing in Turkey and Brazil and then recent loosening of Visa restrictions on Chinese technicians, you would think India is looking to be a bit more open. Electronics production had taken a massive hit post 2020 conflict too.
If Econ Survey's recommendations are implemented, it would constitute a small yard high fence approach. Econ Survey is arguing for better ties in non-critical areas.
Re: We do significant value add in chip design but we only get salaries of our designers/reserchers and foreign companies (AMD, Qualcomm) keep all the Value Add; is there a way we can get more out of them. That is, we are the GCC capital of the world and they have significant operations in India can we use this as a leverage to get something out of them?? Not sure what: indigenisation of IP? invest some share of value add back in India? Of course, anything too stringent (like China) will be counterproductive but are there policy options??
The knowledge spillovers are real. What the government can do is to focus on the DLI scheme so that more employees of GCCs start their own firms. Unlike in software, this will need more than venture capital. Probably something like advance commitments besides a better DLI..
That apart, we should insist that value addition is estimated in India. That number itself will act as a leverage. Apart from that you can't ask a fabless firm to change its business model. You can use the leverage to get them to widen and deepen the work they do here.
Good piece on the devolution of tax formula.
It reminded me of Jonathan Haidt's "The Righteous Mind" (see https://en.wikipedia.org/wiki/Moral_foundations_theory
This topic is the eternal clash between two moral principles: (1) Care (give to those worse off or in need) v/s (2) Fair (How/why is it OK to take from those who earned it?).
No easy answers to that, no math formula will ever "solve" it, and it is an emotive topic.
Re; India's techno-strategic approach towards China - perhaps, they're looking at medium-high yard and low fence? The Economic Survey does make a strong argument for attracting Chinese FDI to invest locally and then export to high demand markets of US and Europe from India.
Sure, there would still be restrictions on Tech but, considering that the Economic Survey specifically pointed out the case of Chinese EVs investing in Turkey and Brazil and then recent loosening of Visa restrictions on Chinese technicians, you would think India is looking to be a bit more open. Electronics production had taken a massive hit post 2020 conflict too.
If Econ Survey's recommendations are implemented, it would constitute a small yard high fence approach. Econ Survey is arguing for better ties in non-critical areas.