MAINS Current Affairs includes Mountbatten Plan (June 3 Declaration): Blueprint for Partition of British India & Future of India’s Chip Industry

HISTORY

1. Mountbatten Plan (June 3 Declaration): Blueprint for Partition of British India

Context: The Mountbatten Plan, announced on June 3, 1947, provided the final framework for the partition of British India and the creation of two independent dominions — India and Pakistan.

Background

• Lord Louis Mountbatten became the last Viceroy of India on 22 March 1947 and was given the responsibility by British Prime Minister Clement Attlee to transfer power to Indians by June 1948.
• However, increasing communal violence made the situation difficult, especially after:
• the Great Calcutta Killings,
• riots in Noakhali and Bihar,
• communal tensions in Bombay,
• violence in Punjab including Amritsar, Rawalpindi, and Taxila.
• Mountbatten concluded that maintaining a united India was becoming impossible and the demand for Pakistan could no longer be ignored.

Key Provisions of the June 3 Plan

• Acceptance of Partition

• The British Government accepted the division of British India into two separate dominions — India and Pakistan.
  • Decision by Provinces
• The Legislative Assemblies of Punjab and Bengal were allowed to decide whether their provinces would remain united or be partitioned.
  • Referendums
• Referendums were proposed in North-West Frontier Province (NWFP) and Sylhet district of Assam to decide whether they would join India or Pakistan.
  • Sindh’s Decision
• The Sindh Legislative Assembly was given the authority to decide its accession to India or Pakistan.
  • Boundary Commission
• A Boundary Commission headed by Cyril Radcliffe was established to determine borders in case of partition of Punjab and Bengal.
  • Creation of Two Dominions
• The plan provided for the establishment of the Dominion of India and Dominion of Pakistan, each having its own Constituent Assembly.
  • Princely States
• Princely States were advised to join either India or Pakistan by considering geographical and administrative factors.
  • Early Transfer of Power
• The date of transfer of power was advanced from June 1948 to 15 August 1947 due to the urgency of the political situation.

Why Did Congress Accept the Plan?

• To Control Communal Violence

• Congress leaders believed that quick independence and transfer of power were necessary to prevent further communal violence and instability.
  • Preference for a Strong Centre
• Leaders like Jawaharlal Nehru and Sardar Vallabhbhai Patel believed that a smaller but stable India was better than a united India weakened by communal conflicts.
  • Failure of Congress-League Cooperation
• The experience of working with the All-India Muslim League in the Interim Government convinced Congress that effective governance in a united India would be difficult.
  • Avoiding Plan Balkan
• Congress opposed Mountbatten’s earlier Plan Balkan, which could have allowed provinces to become independent states and resulted in India’s fragmentation.

Why Did Muslim League Accept the Plan?

• Creation of Pakistan

• The plan accepted the demand for Pakistan, which had been the Muslim League’s main objective since the Lahore Resolution.
  • Fear of Political Marginalisation
• Muhammad Ali Jinnah argued that Muslims would become politically subordinate in a Hindu-majority India, making a separate nation necessary.
  • Strategic Compromise
• Although Jinnah opposed the division of Punjab and Bengal, he accepted it as a compromise to achieve the creation of Pakistan.

Immediate Challenges After Announcement

• Unclear Boundaries

• The exact borders between India and Pakistan were undecided when independence was announced.
  • Population Migration Issue
• There was no proper plan regarding population movement, and Mountbatten did not expect a large-scale migration.
  • Administrative Division
• Division of assets, armed forces, civil services, and financial resources between India and Pakistan remained a major challenge.

Consequences of the Plan

• Political Outcome

• The June 3 Plan resulted in the Indian Independence Act, 1947, leading to the creation of Pakistan on 14 August 1947 and independent India on 15 August 1947.
  • Humanitarian Impact
• Partition caused one of the largest migrations in human history, accompanied by widespread communal violence, displacement, and loss of lives.
• Historian Yasmin Khan observed that Partition had “no firm line between winners and losers” as suffering affected communities on all sides.

Conclusion

The June 3 Plan marked the final stage of British withdrawal from India. While the Muslim League viewed it as the achievement of Pakistan, Congress accepted it as a difficult but necessary step to ensure political stability and prevent further fragmentation of India.

ECONOMY

2. Future of India’s Chip Industry

Context: NITI Aayog’s Frontier Tech Hub released the report “Future of India’s Semiconductor Industry”, highlighting opportunities and challenges in developing a strong domestic semiconductor ecosystem.

Why are Semiconductors Important?

• Semiconductors are the foundation of the modern digital economy as they power smartphones, computers, electric vehicles, telecom networks, Artificial Intelligence systems, defence equipment, and aerospace technologies.
• Currently, India imports most of its semiconductor requirements, creating risks due to global supply disruptions and geopolitical tensions.

Current Status of India’s Semiconductor Ecosystem

• India does not yet have a fully operational semiconductor fabrication plant (fab). The first fab at Dholera is expected to become operational by 2028.
• Around 10 semiconductor projects are under different stages of development.
• India remains dependent on imported chips for domestic electronics manufacturing.
• Geopolitical tensions around Taiwan have highlighted risks of concentrated semiconductor production.
• Dependence on foreign chips, especially for defence systems, can create serious national security vulnerabilities.

Major Challenges Before India

• Long Development Period

• Semiconductor fabs are highly complex facilities requiring nearly 4–5 years before production begins, while yield improvement and reliability testing take additional time.
  • High Investment Requirement
• Chip manufacturing needs massive capital investment, and India may require around $45–60 billion in public expenditure over the next decade, creating challenges related to fiscal sustainability and efficient subsidy allocation.
  • Technological Dependence
• India lacks advanced lithography technology, specialised semiconductor equipment, and high-purity materials, which are controlled by limited global players.
  • Skilled Workforce Gap
• Semiconductor manufacturing requires highly trained engineers and technicians, making investment in R&D, advanced institutions, and industry-academia collaboration necessary.
  • India Semiconductor Mission (ISM)
• India launched the India Semiconductor Mission (ISM) with an outlay of ₹76,000 crore to develop domestic semiconductor manufacturing capacity.

Key Features of ISM

• Support for Semiconductor Fabs

• The government provides up to 50% capital subsidy for semiconductor fabrication plants, while states provide additional support through land, electricity, and infrastructure incentives.
  • Packaging and Testing Support
• India is promoting chip packaging, assembly, and testing facilities as they require lower investment and can integrate India faster into global semiconductor supply chains.
  • Design and Talent Development
• ISM supports semiconductor design tools, university-level research, innovation, and skill development by utilising India’s existing strength in chip design services.

Strategic Shift Suggested by NITI Aayog Report

• Focus on Mature and Strategic Chips

• Instead of competing immediately in advanced 3–7 nanometre chips, India should focus on mature semiconductor nodes, defence-related chips, and compound semiconductors that are commercially practical.
  • Develop Packaging as a Core Strength
• Semiconductor packaging should be treated as a major industry because it requires lower investment, creates employment, and helps India enter global supply chains quickly.
  • Build Indigenous Research Capacity
• India needs to move from a semiconductor services model towards creating its own intellectual property through chip design, materials research, and AI-driven semiconductor engineering.
  • Strengthen Semiconductor Diplomacy
• India should develop trusted partnerships with the United States, Japan, European Union, and South Korea for technology access, equipment support, and resilient supply chains.

Significance of Semiconductor Industry for India

• Economic Growth

• A domestic chip ecosystem will strengthen electronics manufacturing, attract investment, and support India’s digital economy.
  • National Security
• Reducing import dependence will ensure secure semiconductor availability for defence and strategic technologies.
  • Employment Generation
• The sector can create high-skilled jobs in manufacturing, research, design, and engineering.
  • Atmanirbhar Bharat
• Domestic semiconductor capability supports initiatives like Make in India, Digital India, Atmanirbhar Bharat, and Production Linked Incentive (PLI) schemes.

Way Forward

• Target Practical Strengths

• India should focus on mature nodes, chip design, packaging, and strategic applications rather than attempting to dominate the entire semiconductor value chain immediately.
  • Increase R&D Investment
• Greater investment in semiconductor research, advanced laboratories, and industry-academia partnerships is required.
  • Develop Skilled Workforce
• Specialised training programmes should be promoted to create engineers and technicians for semiconductor industries.
  • Build Global Partnerships
• Collaboration with trusted semiconductor leaders can help India access technology and strengthen supply-chain resilience.

Conclusion

• India’s semiconductor ambitions are crucial for technological self-reliance, economic security, and digital transformation.
• A balanced approach focusing on chip design, packaging, mature nodes, skilled workforce development, and global partnerships can help India emerge as an important player in the global semiconductor ecosystem.

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