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This week's edition takes a look at India's semiconductor mission and recent developments, Deutsche Börse Group confirming a GCC trend, Saint-Gobain's expansion, and more must-know news.

Recap: I hope you enjoyed last week’s guest article, when fellow Riser Adithya Nataraj Ramalingam went deep into “Green Hydrogen: Unlocking India–Germany Synergy in the Global Energy Transition”. My key takeaway: the energy sector will change drastically, and a closer Indo-German collaboration would benefit both sides substantially.

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Semiconductors are often described as “the new oil”, which became especially clear when semiconductor shortages at the height of the COVID brought global supply chains to their knees in late 2021. As a response, the Indian government launched the India Semiconductor Mission (ISM) and the latest reports show that this ambitious strategy is gaining real momentum.

The global chip market is expected to reach USD 1 trillion by 2030. India targets to triple its domestic sector from USD 38 billion today to USD 100-110 billion, capturing 10% of the market potential. While multiple government schemes are driving this growth, the ISM’s INR 76,000 Crore (EUR 8.44 billion) large funding program is the cornerstone, targeting to support the sector strategically in three key areas:

While public funding is important, private capital follows suit and semiconductor companies such as Micron Technology, CG Power, HCL Foxconn, or Tata Group received approval for their chip investments in the country.

Recent developments confirm that India is not only becoming an electronics manufacturing hub, but accelerates establishing its semiconductor industry:

India isn't alone in this semiconductor race. Southeast Asia, the Middle East, and the US are all competing for global market share. But India brings unique advantages: a massive domestic market, established chip design expertise, cost arbitrage, and increasingly, the attention of US Big Tech companies investing heavily in India's AI infrastructure.

The AI connection provides crucial tailwinds:

These developments create natural demand for the semiconductor capacity India is building and the strategic implications are clear. India is systematically building semiconductor capabilities across the entire value chain, backed by substantial government commitment and growing private investment.

For European businesses directly or indirectly involved in the semiconductor ecosystem, the question is whether they'll position themselves to participate in this growth. India's semiconductor mission is taking shape, and the window for strategic positioning is open now.

Sources: Times of India, The Economic Times, Data Center Dynamics

The German international exchange and capital markets infrastructure provider Deutsche Börse Group inaugurated its first Indian Global Capability Center (GCC) in Hyderabad on August 21st, and confirms the accelerating trend by German and European businesses establishing innovation hubs in India's tech ecosystem.

The German exchange operator joins a growing roster of European financial services companies recognising that India's GCC landscape has evolved far beyond traditional cost arbitrage. According to Zinnov's market observations and forecasts, GCCs are becoming key innovation hubs in global organisations. Deutsche Börse Group's center will focus on cutting-edge capabilities including cybersecurity, AI-powered analytics, and cloud-native infrastructure, similar to ERGO Group's EUR 130 million investment in its Mumbai GCC to accelerate generative AI that we reported last week.

However, I think the real opportunity lies with Germany’s and Europe’s large industrial and manufacturing sector to accelerate their digital developments. The synergies are substantial, yet most European industrial companies remain on the sidelines. For those ready to move beyond traditional offshoring models toward genuine innovation partnerships, India's GCC ecosystem offers a compelling path forward.

Sources: Deutsche Börse Group, Zinnov

India’s construction sector is booming and expected to grow to a USD 5.8 trillion industry by 2047, larger than the GDP of many of today’s leading economies. This provides substantial opportunities for the European construction and real estate sector as well, which the French leader in lightweight and sustainable construction Saint-Gobain addresses by expanding its footprint in Chennai.

The company started construction of two new production plants:

This expansion comes on the heels of Saint-Gobain's strategic acquisitions of two Indian competitors, consolidating its market position in a rapidly growing sector.

The timing aligns with India's increasing focus on sustainable construction standards. Saint-Gobain's mineral wool insulation and high-performance glass solutions directly address energy efficiency requirements in India's green building push, a trend that's creating premium market segments for European technology leaders and which was covered in detail in our recent guest article “The Green Imperative in India”.

With ten manufacturing lines already operational across India and now its largest investment in APAC underway, Saint-Gobain is demonstrating how European construction companies can capitalise on India's infrastructure trajectory.

Sources: The Machine Maker

In a recent report, the German organisation Konrad Adenauer Stiftung shares the growing importance of India for Germany’s science and innovation sector.

You can find the report here.

Your random facts and stories about India and the Indo-European friendship.

This week: the Reverse Brain Drain to India.

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