India Trails in Critical Technologies, Especially Semiconductors

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    In the 21st century, technology leadership defines global power. A newly released Critical and Emerging Technologies (CET) Index evaluates how 25 countries perform across five vital technology sectors — Artificial Intelligence (AI), Biotechnology, Semiconductors, Space, and Quantum Technologies.

    Unfortunately, the report shows that India lags significantly behind the top three performers — the United States, China, and Europe — especially in semiconductor technology, a sector crucial for national security and economic self-reliance.

What is the CET Index?

    Developed using public and commercial datasets, the CET Index allows policymakers to assess each country’s relative strengths and weaknesses in critical technologies.

    To reflect strategic value, each sector was weighted based on six criteria, including geopolitical relevance, dual-use potential, and future growth implications:

  • Semiconductors – 35%
  • Artificial Intelligence – 25%
  • Biotechnology – 20%
  • Space – 15%
  • Quantum – 5%

India's Position in the Index

India scores 15.2 in the overall index, ranking below France and above Russia, Canada, and Australia. It significantly lags behind the top three performers — the United States, China, and Europe; in most sectors, particularly in semiconductor technology.

🏆 Top Global Performers: How They Lead

United States: Global Technology Leader

The U.S. leads across all five sectors, powered by:

  • Massive investments

  • A strong academic and research ecosystem

  • Decentralised innovation networks

Its dominance is particularly strong in:

  • AI

  • Semiconductors

  • Space technology

China: Fast Catch-Up with State-led Strategy

China is closing the gap through:

  • Centralised planning

  • State-led funding

  • Massive scale and manpower

It is making strong progress in:

  • Biotechnology

  • Quantum

However, China still struggles in semiconductors and advanced AI due to its dependence on foreign tech tools and a weaker private research base.

Europe: Balanced Yet Lagging in Key Sectors

Europe performs well in:

  • Biotechnology

  • Quantum

But falls behind in:

  • Semiconductors

  • Space

🔍 Sector-Wise Breakdown

🤖 Artificial Intelligence (AI)

  • Evaluated across 8 pillars

  • Focus on funding, talent, algorithms, computing power, and data access

  • Lower weight to regulation and global influence

Rankings:

  1. United States

  2. China

  3. Europe

India trails significantly due to lack of high-end research infrastructure and limited private sector contribution.

🧬 Biotechnology

  • Assessed using 9 pillars

  • High weight to:

    • Human capital

    • Funding

    • Pharma production

    • Genetic engineering

    • Vaccine research

India has potential here, given its pharmaceutical industry strength, but needs greater investment in R&D.

💾 Semiconductors

  • One of the most strategic sectors, with 35% weight in the index

  • Evaluated using 8 pillars, with emphasis on:

    • Chip design

    • Manufacturing

    • Talent

    • Funding

India’s challenge is its dependency on imports and lack of a complete supply chain. Taiwan, Japan, and South Korea dominate this space.

🚀 Space Technologies

  • Based on 10 pillars including:

    • Funding

    • Talent

    • Defence assets

    • Launch capability

    • Navigation and telecom

India ranks 7th, behind countries like the U.S., Russia, and China. Despite ISRO’s low-cost innovation, India lacks depth in private sector participation and space defence.

⚛️ Quantum Technologies

  • Based on 8 pillars, focusing on:

    • Core technologies

    • Talent pool

    • Funding

India is still in the nascent stage of quantum development. The National Mission on Quantum Technologies is a step in the right direction.

Global Collaboration and Challenges

  • U.S. partnerships with Europe, Japan, and South Korea further enhance its strength in quantum and semiconductors.

  • However, no single country has full control over the semiconductor supply chain.

  • While the U.S. maintains a strong lead in AI, China’s advantages in data, talent, and emerging models indicate an intensifying competition.

🛤️ India's Road Ahead: Way Forward

  1. Invest in Indigenous R&D: Boost funding to academic institutions and startups.

  2. Build Talent Pipelines: Create specialised training in AI, chip design, biotech, and quantum.

  3. Public-Private Partnerships: Encourage domestic industry participation in critical tech.

  4. Global Collaborations: Leverage tech alliances with Japan, U.S., EU for co-development.

  5. Strategic Vision: Treat technology as part of national security, not just economic policy.

    India has immense potential, but bridging the tech gap requires urgent action, sustained investment, and visionary policymaking. 


Practice Question:


India lags significantly behind in critical and emerging technologies, especially in the semiconductor sector. In this context, evaluate the strategic importance of developing indigenous capabilities in critical technologies. Suggest measures India should take to bridge the gap with global leaders.
(250 words)
Location: Bengaluru, Karnataka, India

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