View: India needs a system-to-chips-to-fab virtuous cycle: Ajai Chowdhry

For far too long, India has leaned heavily on its strength in services, but as global dynamics shift, we must pivot towards becoming a product nation. The 1991 reforms laid the groundwork for physical, telecom, and digital infrastructure, yet nearly 60% of India’s exports are still service-based, especially in software. The reliance on services leaves India economically vulnerable, as automation may shave off service jobs in the future. In contrast, countries like China have 90% of their exports in commodities and only 10% in services.