New restrictions on AI chips into India but growth remains unaffected

The US restrictions are part of global tech wars and the third globalisation, aimed at hindering China's access to AI technologies

The United States (US) has proposed a group of restrictions on exporting top end AI (artificial intelligence) chips. AI chips are being treated, by the US government, as defence equipment and many elements of defence restrictions are being brought into this space. The use of these chips in India faces new restrictions as compared with before. Exporting software and software-enabled services is central to Indian growth. From an Indian economic-strategy viewpoint, however, the new restrictions do not make an important difference. The path to doubling services exports in the next decade remains fully available. The new environment does have some