You’ve seen the news: US President Donald Trump is playing roulette with the global trade order. Then, there’s the massive Rs 23,000 crore performance-linked incentive scheme that the Indian cabinet approved for electronics makers at around the same time.

For companies in the manufacturing sector, it’s been a mad, hectic April. They know it’s necessary to strike new alliances—or renew old ones—if they are to emerge from the chaos in better shape than before. That means they’re looking for technology partners and opportunities for joint ventures.

But India, for a while, tried hard to avoid one particular partnership that could give its companies a much needed boost up the value chain.

China.

The reluctance isn’t surprising, but consultants and industry executives say it may not be long before tie-ups with Chinese firms become inevitable.

As they say, “If you can’t beat ’em, join ’em.”

Shristi Achar explains in this week’s edition of Make India Competitive Again. Check it out.

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There are plenty of reasons for India’s semiconductor companies to win. The US is seeking to dial back its reliance on China’s tech providers, shaking up global supply chains. Since one-fifth of global semiconductor-design talent is located in India, the country should be coming out on top.

But that isn’t how the shakeup is unfolding. Some projects like those of Murugappa Group, Micromax, and Tata Electronics are chugging along, but there are hardly any internationally noteworthy players.

Here’s one absent piece of the puzzle: there isn’t enough capital being directed into India’s semiconductor space. The government’s design-linked incentives, or DLI, are meant to kick-start the sector, but the funds simply aren’t enough to yield the results that would put India squarely on the map.

There are other problems too, from US President Donald Trump’s shenanigans to the fact that Indian firms still need to put in immense effort to convince customers that their chips can be just as good as anyone else’s.

It’s tough running a semiconductor company in India. Shristi Achar explains in the latest edition of Make India Competitive Again, as read by Brady Ng.

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India wants a sovereign AI model. It’s a big goal, and success means stringing together contributions from a range of entities, including Big Tech firms and domestic AI developers of all scales. The ideal version of this plan was meant to lead to plenty of competition—no preordained winners.

The latest development, however, is one that runs against that framework. Sarvam has been tapped to build India’s own large language model (LLM), while firms like Gan AI, Soket AI Labs, and Krutrim—all shortlisted to be part of the process—are still waiting for a call from the government.

Never one to let an opportunity slide, Sarvam is using its newfound status to raise up to $100 million in fresh venture funding, people in India’s AI ecosystem told The Ken.

As a nation, India is making a big bet to bring into existence a sovereign AI model. But it’s off to a rocky and familiar start: there’s one anointed winner while many others are left confused.

Besides, there are questions about whether India’s flagship AI initiative is on the right course. Sarvam is a two-year-old company that’s funded with non-sovereign capital from the likes of Lightspeed, Peak XV, and Khosla Ventures. Does that warp the nature of India’s plan to create a sovereign AI model?

Abhirami explains in this week’s Make India Competitive Again, as read by Snigdha Sharma.

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