According to a report by NITI Aayog, India’s semiconductor market is projected to reach approximately $200 billion by 2035. However, despite growing domestic demand, nearly 90-95 per cent of requirements are currently met through imports, resulting in significant foreign exchange outflows and exposing critical sectors to supply chain vulnerabilities.
Building a globally competitive semiconductor ecosystem in India will require cumulative investments of $135-180 billion over the next decade, directed towards design, fabrication, advanced packaging, materials and supporting infrastructure. The report said the government should commit at least one-third of the required investment to de-risk projects and anchor long-term investor confidence.
Further, the global semiconductor market is expected to exceed $1.5 trillion by 2035.
The report recommended that fabrication plants (fabs), advanced packaging, compound semiconductors and critical design infrastructure be prioritised for public funding. Alongside financial support, the report stressed the importance of policy stability, predictable incentives and coordinated execution across the value chain.
The report also suggested that India should aim to build a $120-150 billion semiconductor value chain by pursuing strategic leadership rather than mere participation. Rather than attempting to catch up with global leaders in wafer fabrication, it said India should define its own distinct pathway, one shaped by strategic self-sufficiency, ecosystem strength and global indispensability.
