Energy Crisis Threatens India's Tech Ambitions

New Delhi: India is on its way to becoming a global hub for technology, but geo-political conditions globally are hampering these dreams. The crisis in the Gulf of Hormuz, in particular, has raised questions about the future of India's semiconductor mission and data centres. According to Counterpoint expert Tarun Pathak, if energy prices continue to rise, it will have a direct impact on sectors like data centres. Energy consumption in data centres is very high. If electricity becomes expensive, new investment in this sector may decline and demand may even decline. India's electronics and AI sectors are largely dependent on infrastructure and foreign investment. The energy crisis and raw material uncertainty may slow down both these sectors. The Indian government's semiconductor mission is on track, but the crisis in Hormuz has proved that India is still dependent on external sources for many important things.