Taiwan Pushes for FTA with India to Boost Semiconductor and Trade Ties
Amid global trade uncertainties, Taiwan has reiterated its intent to sign a Free Trade Agreement (FTA) with India, aiming to strengthen economic cooperation and establish a robust technology partnership. Taiwan’s Deputy Trade Representative Yen Huai-shing emphasized India’s central role in the New Southbound Policy, underscoring how Taiwan’s semiconductor expertise and India’s growing digital and IT capabilities could create a complementary supply chain. Experts note that such a partnership could accelerate India’s chipmaking ambitions and help both nations reduce dependence on China, though geopolitical pressures from Beijing remain a significant hurdle.
Beyond trade, Taiwan is also seeking greater labour cooperation with India to address workforce shortages amid demographic challenges. Taiwan’s Labour Ministry has announced expanded recruitment of Indian professionals, particularly in IT, research, and industry. Industry observers believe a successful FTA would not only reshape regional economic dynamics but also give Taiwan a strong foothold in India’s fast-growing market, while supporting India’s $10 billion semiconductor incentive plan. An India-Taiwan FTA could open new opportunities for global firms by strengthening supply chain resilience in Asia, diversifying chip production beyond China, and creating a more stable framework for international businesses engaged in electronics, IT services, and manufacturing.
Editor’s Note: Taiwan is actively pursuing a Free Trade Agreement with India to deepen economic ties, align semiconductor and digital capabilities, and support India’s $10 billion chipmaking initiative amid shifting global trade dynamics. Alongside trade, Taiwan seeks expanded labour cooperation by recruiting Indian professionals to address workforce shortages, aiming to build resilient supply chains and reduce reliance on China.
Modi Visits China, Japan, and Russia Amid U.S. Tariff Pressures
Prime Minister Narendra Modi begins a key overseas tour on Thursday, meeting leaders of China, Japan, and Russia as India faces mounting trade tensions from U.S. President Donald Trump’s tariff hikes of up to 50% on Indian exports. The visit includes Modi’s first trip to China in seven years and a high-profile stop in Japan, where New Delhi hopes to strengthen its “Make in India” initiative by deepening economic and strategic partnerships. Japanese media reported that companies from Japan are planning investments worth up to 10 trillion yen ($68 billion) in India over the next decade, with Suzuki Motor pledging around $8 billion in the near term.
Talks with Japanese Prime Minister Shigeru Ishiba are expected to focus on high-value manufacturing, rare earth minerals, and supply chain resilience within the Quad framework that also includes the U.S. and Australia. Officials highlighted that India, which holds significant deposits of rare earths but lacks advanced processing technologies, could become a major partner for Japan in securing critical minerals. While India continues to seek dialogue with Washington on tariffs, stronger ties with Japan and other major economies are being positioned as a buffer against global trade disruptions. For global businesses, Japan’s large-scale investment plans and cooperation on rare earths signal new opportunities in India’s industrial and technology sectors. Enhanced India-Japan ties could also reshape supply chains in electronics, automobiles, and renewable energy, providing alternative avenues as trade uncertainty with the U.S. lingers.
Editor’s Note: Prime Minister Modi’s visit to China, Japan, and Russia aims to strengthen strategic and economic ties amid rising U.S. tariffs on Indian exports, with Japan pledging major investments and collaboration on rare earth minerals and supply chain resilience. As India seeks dialogue with Washington, deeper partnerships with Japan and other key economies are being positioned to buffer global trade disruptions and unlock new industrial opportunities.
India’s AI Talent Crunch Drives Salaries to Record Highs
India’s artificial intelligence sector is facing a severe skills shortage, with just one qualified engineer available for every ten Generative AI roles, according to TeamLease Digital’s latest report. The gap is reshaping the job market, driving salaries for Generative AI and MLOps engineers up to Rs 58–60 LPA, while cloud and cybersecurity roles are also witnessing double-digit hikes. In contrast, legacy roles such as IT support have stagnated at Rs 12 LPA. The report warns that without urgent investment in upskilling, the demand-supply mismatch could derail the country’s digital growth, especially with cloud computing already facing a 55–60% shortfall.
The boom is also creating new job hubs beyond Bengaluru and Hyderabad, with Tier-2 cities gaining prominence as Global Capability Centres (GCCs) expand. GCCs are projected to generate 1.2 million jobs by 2027 and already report 40% female participation, surpassing industry averages. With India’s digital economy expected to grow twice as fast as the overall economy and account for nearly 20% of GDP by 2029–30, the report highlights the urgency of skilling in frontier areas such as AI compliance, AR/VR, and risk operations to sustain momentum.
Editor’s Note: India’s AI sector faces a sharp talent crunch, driving salaries for Generative AI and MLOps engineers to record highs, while legacy IT roles stagnate and cloud computing suffers a 55–60% shortfall. As Global Capability Centres expand into Tier-2 cities and India’s digital economy surges toward 20% of GDP by 2030, urgent upskilling in frontier tech areas is vital to sustain growth and job creation.
Reliance Launches ‘Reliance Intelligence’ to Drive AI and Deep Tech Growth
Reliance Industries Chairman Mukesh Ambani announced the formation of a new wholly-owned subsidiary, Reliance Intelligence, at the company’s Annual General Meeting on Friday (August 29, 2025). The new entity will focus on building India’s next-generation AI infrastructure through gigawatt-scale, AI-ready data centres in Jamnagar, powered by green energy and designed for national-scale training and inference. Ambani said the subsidiary will also foster global partnerships, combining Reliance’s domain expertise with international tech companies and open-source communities to ensure resilient supply chains, performance leadership, and India-first compliance in AI.
Beyond infrastructure, Reliance Intelligence will deliver affordable AI services tailored for consumers, small businesses, and critical sectors like education, healthcare, and agriculture. It also aims to attract world-class talent across research, engineering, and product design. Ambani further announced an expanded partnership with Google to integrate Reliance’s large-scale execution capabilities with Google’s cloud and AI technologies, enabling developers, start-ups, and enterprises to innovate more securely and at scale.
This development offers international firms opportunities to co-develop AI solutions, collaborate on data centre ecosystems, and tap into India’s rapidly growing digital market. It also signals increasing competition in the AI and cloud space in Asia, where multinational companies will need to adapt to India-first compliance and affordability-driven business models.
Editor’s Note: Reliance Industries has launched Reliance Intelligence to build gigawatt-scale, green-powered AI data centres in Jamnagar and offer affordable AI services across key sectors, while fostering global partnerships and India-first compliance. With an expanded alliance with Google, the initiative opens doors for international firms to co-develop AI solutions and signals rising competition in Asia’s cloud and deep tech space.
India Opens First Semiconductor OSAT Pilot Line in Gujarat
India inaugurated one of its first end-to-end Semiconductor OSAT (Outsourced Semiconductor Assembly and Test) Pilot Line facilities in Sanand, Gujarat, marking a significant step in its ambition to become self-reliant in chip design and manufacturing. The facility, launched under the India Semiconductor Mission, will handle chip assembly, packaging, testing, and post-test services, a crucial stage before full-scale commercial production. Backed by CG Semi—a joint venture of CG Power (Murugappa Group), Renesas Electronics, and Stars Microelectronics—the G1 plant involves an investment of ₹7,600 crore ($870 million) and has a capacity of 0.5 million units per day, with the upcoming G2 facility set to scale this to 14.5 million units daily by 2026. Together, they are expected to generate over 5,000 jobs.
The new plant features advanced equipment, in-house reliability labs, and automation systems to meet international quality standards, positioning Gujarat as a semiconductor hub. The government is also addressing the global shortage of chip professionals by partnering with 270 universities and providing advanced semiconductor design tools, which have already enabled 20 chips to be fabricated locally. The project is seen as vital for sectors such as automotive, defence, infrastructure, and IoT, aligning with India’s Atmanirbhar Bharat vision of reducing import dependence and enhancing technological sovereignty. This development creates opportunities for non-Indian companies to collaborate in semiconductor packaging, equipment supply, and R&D, while also signaling India’s emergence as a competitive alternative hub in the global semiconductor supply chain.
Editor’s Note: India has inaugurated its first end-to-end Semiconductor OSAT Pilot Line in Gujarat under the India Semiconductor Mission, backed by CG Semi with ₹7,600 crore investment, aiming to boost chip self-reliance and generate over 5,000 jobs. With advanced infrastructure, university partnerships, and growing local chip fabrication, the initiative positions India as a rising semiconductor hub and invites global collaboration in packaging, equipment, and R&D.
Trai Plans Refurbished Device Scheme to Boost Digital Inclusion, Tackles Cybercrime Surge
The Telecom Regulatory Authority of India (Trai) is exploring a scheme to distribute refurbished smartphones and laptops to underserved users, aiming to bridge the digital divide despite India’s 1.2 billion mobile connections and rapid 5G rollout. The initiative, inspired by similar efforts in the UK and Vodafone Group, could help reach the 250 million people still dependent on basic feature phones while also addressing India’s mounting e-waste problem, which totals 1.75 million tonnes annually. Alongside this, Trai is updating outdated interconnect regulations for IP-based networks and reviewing spectrum pricing to strengthen India’s telecom framework.
The push for digital inclusion comes amid a sharp rise in cybercrime, with losses exceeding Rs 22,845 crore in 2024 and continuing at about Rs 1,000 crore per month in 2025. Regulators and telecom operators are deploying AI-driven tools to block fraudulent connections, detect spoofed calls, and educate citizens about scams, with platforms like Sanchar Saathi enabling millions of fraud reports. Industry leaders stressed that digital trust is critical for sustaining financial and digital growth, urging a whole-of-ecosystem approach to online safety. This development highlights opportunities for non-Indian companies in device refurbishment, e-waste management, and cybersecurity solutions, as India’s digital inclusion drive and security push could reshape market dynamics and partnerships across the global telecom and technology sectors.
Editor’s Note: Trai is planning a refurbished device scheme to boost digital inclusion for underserved users, tackle India’s 1.75 million tonnes of e-waste, and modernize telecom regulations amid rapid 5G expansion. With cybercrime losses soaring past ₹22,845 crore, AI-driven fraud detection and platforms like Sanchar Saathi are reinforcing digital trust, creating global opportunities in device refurbishment, cybersecurity, and telecom partnerships.