1) India-US Deal for Semiconductor Unit: Recently, US-based Company – Micron Technology, has signed a Memorandum of Understanding (MoU) with the state government of Gujarat to establish a Semiconductor Unit worth Rs 22,500 crore near Ahmedabad.
Challenges Regarding Semiconductor Manufacturing in India:
- A semiconductor fabrication facility (or fab) can cost multiples of a billion dollars to set up even on a relatively small scale and lagging by a generation or two behind the latest in technology.
- Semiconductors and display manufacturing is a very complex and technology-intensive sector involving huge capital investments, high risk, long gestation and payback periods, and rapid changes in technology, which require significant and sustained investments.
- The level of fiscal support currently envisioned is minuscule when one considers the scale of investments typically required to set up manufacturing capacities in the various sub-sectors of the semiconductor industry.
- India has a decent chip design talent but it never built-up chip fab capacity. The ISRO and the DRDO have their respective fab foundries but they are primarily for their own requirements and are also not as sophisticated as the latest in the world.
- Chip fabs are also very thirsty units requiring millions of liters of clean water, an extremely stable power supply, a lot of land and a highly skilled workforce.
2) Madras HC: Merit over Caste in Temple Priest Appointments: The Madras High Court has recently made a significant ruling that highlights the importance of meritocracy and equality in the appointment of temple priests.
SC Judgements regarding Temple Priest Appointments:
- Seshammal & others vs. State of Tamil Nadu (1972): The SC held that the appointment of an Archaka (temple priest) is a secular function, and the performance of religious service by the priests is an integral part of the religion.
- Adithayan vs. Travancore Devaswom Board (2002): The SC rejected the customary claim that only Brahmins (in this case Malayala Brahmins) can perform rituals in temples.
3) Indian Startup Ecosystem: According to “slowdown in India’s startup ecosystem” report, new additions in the coveted unicorn list declined sharply in 2023, indicating a slowdown in the Indian startup ecosystem.
Challenges Faced by Indian Startups:
- Indian startups encounter difficulties in securing adequate funding for their ventures. Limited access to capital inhibits their growth potential and hampers innovation. Startups face challenges in attracting investors and obtaining venture capital due to various factors such as risk aversion, uncertain market conditions, and lack of investor confidence.
- Many startups face challenges in generating sustainable revenues. They often struggle to find viable business models, monetize their products or services, and achieve profitability. Limited market reach, competition from established players, and insufficient customer acquisition pose additional hurdles.
- The absence of a robust infrastructure ecosystem can impede the growth of startups
- Startups in India face regulatory hurdles and complex tax structures.