India is preparing for one of its biggest technology manufacturing pushes as the government considers investing between $45 billion and $60 billion over the next decade to develop a complete domestic semiconductor supply chain. The proposal is part of a comprehensive roadmap prepared by NITI Aayog to strengthen India’s position in the global chip industry and reduce dependence on imports.
The roadmap estimates that the global semiconductor market could grow from $631 billion in 2024 to $1.547 trillion by 2035. To capitalize on this opportunity, India aims to build a domestic semiconductor value chain worth $120–150 billion by 2035, helping the country emerge as both a major manufacturer and exporter of semiconductor products.
The report highlights that India imported nearly $150 billion worth of semiconductors over the last eight years, with imports growing at an annual rate of 23%. If current trends continue, semiconductor imports could touch $240 billion by 2035, increasing strategic dependence on foreign suppliers. Policymakers believe that strengthening domestic manufacturing is critical not only for economic growth but also for national security, as semiconductors are essential for AI, defence systems, electronics, automobiles, EVs and telecommunications.
The roadmap also emphasizes stronger partnerships with countries such as United States, Japan and South Korea. It warns that any geopolitical disruption involving Taiwan could significantly impact global chip supplies, given Taiwan’s dominant position in semiconductor manufacturing. The initiative aligns with India’s broader ambition of becoming a global technology and manufacturing hub under the semiconductor mission.
Key Highlights
- Government may invest up to $60 billion in semiconductor ecosystem development.
- India targets a $120–150 billion domestic semiconductor value chain by 2035.
- Global semiconductor market projected to reach $1.547 trillion by 2035.
- Semiconductor imports could rise to $240 billion by 2035 if domestic production remains limited.
- Focus on partnerships with the US, Japan and South Korea.
- Semiconductor manufacturing seen as crucial for economic growth and national security.
