A strong surge in demand and investment is set to reshape India’s semiconductor landscape over the next decade. A recent report by Deloitte estimates the market will grow to $120B by 2030 and further expand to $300B by 2035.
The growth is being driven by rising adoption of AI, expansion in automotive electronics, increasing data centre demand, and a push in electronics manufacturing.
The report highlights a major structural change in the ecosystem. By 2035, local production is expected to meet over 60% of domestic semiconductor demand.
At present, India imports more than 90% of its semiconductor requirements. In FY2024-25, the market is valued at $45.5B and has grown at a CAGR of 20% over the last 3 years.
By 2035, sectors such as mobile phones, automobiles, computing, and data centres are expected to contribute over 70% of total semiconductor demand.
Government initiatives like the India Semiconductor Mission and state-level incentives are supporting this growth. So far, the sector has attracted over $19B in investments across 10 approved projects, including 8 OSAT facilities, 1 compound fab, and 1 semiconductor fab.
The report notes that 18-20 additional proposals worth $20-25B are currently in the pipeline. Over the next 5 years, the industry is expected to attract another $50B in investments.
Between 2030 and 2035, an additional $75-80B is likely to be invested, supporting further expansion in capacity.
The semiconductor sector is expected to generate around 2M jobs by 2035. About 30% of these will come from manufacturing, another 30% from design services, and the remaining 40% from other parts of the value chain.
To support this growth, India will need to train 400,000-500,000 people every year through specialised courses and training programs.
The report stresses that long-term success will depend on strong execution. It suggests turning policy into a structured national program with clear funding.
It also recommends better coordination between central and state governments, including a single-window system for land, utilities, and infrastructure delivery.
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