According to estimates by the Ministry of Electronics and Information Technology (MeitY), half of India’s semiconductor demand will be met through domestic manufacturing by financial year 2034-35 (FY35), with some facilities expected to begin production as early as this year.
Domestic production is expected to substantially reduce India’s semiconductor import bill, which has been a significant drain on foreign exchange. Semiconductor imports in FY25 topped $30.3 billion, up from $19.3 billion in FY23 and $11.9 billion in FY19. From 2017 to 2025, India cumulatively imported semiconductor products worth $150 billion, with imports growing at a compound annual growth rate of 23 per cent, according to NITI Aayog estimates. If that pace continues, the country would import $240 billion worth of semiconductor products by 2035.
India currently imports 90 per cent of its semiconductor requirements, even as domestic electronics manufacturing expands. The country is targeting $500 billion in electronics manufacturing by FY30 and $750 billion by FY35. NITI Aayog projects that India’s semiconductor demand will reach $206 billion by 2035, a five-fold jump from an estimated $44 billion in FY26.
For context, China is aiming to raise its semiconductor self-sufficiency rate from around 20 per cent today to 50-60 per cent by 2030, while Germany targets 20 per cent self-sufficiency by the same year, which would triple its domestic production to $100 billion.
