As tensions between the West and China escalates, India is increasingly being looked upon as a compelling tech hub alternative. With skilled professionals, political stability and underlying economic relations, and President Joe Biden demanding “China-free” supply chains in some sectors, India has many strings to its bow.

While Washington shifts its links to China, India is the most important nation to forge strategic relations with, according to a report from the Information Technology and Innovation Foundation. Similarly, the Asia-based Hinrich Foundation argues that India faces “a historic opportunity to transform into one of the world’s most important technology hubs.” 

While China’s reputation as a technology hub has grown over many years, India still has areas to fine-tune, in order to be a truly compelling rival to China. 

India must grapple with issues that have limited manufacturing growth, and the need to develop smartphone manufacturing abilities, according to the Hinrich Foundation. Harsh Walia, a partner at Khaitan & Co., says legal and regulatory framework in India can also pave way for technological advancements.

The country “should remove impediments such as Right of Way for deployment of telecom infrastructure which will be essential and lay the groundwork for 5G deployment. 5G spectrum auction should also take place this year to ensure India is not left behind,” Walia advises.

The open sky policy for disseminating satellite-based internet is another key area to “look out for to accommodate new business models related to 5G and automation,” the lawyer adds.

Additionally, while telecom equipment manufacturing in India can eclipse China, “there is dire need to incentivise manufacturing in India and exports by granting sops and rebates,” Walia says.

But while China has been proactive in introducing policy measures, including financing, in order to support its satellite industry and incentivise the development of satellite-based broadband internet in China, India will need to follow suit in order to prove itself a strong option.

“For full realisation of the potential of the satellite sector in India and supporting new business models and entrants, an overhaul and simplification of current framework is necessary,” Walia adds.

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