Fuelled by sectors like smartphones, telecom, and IT, India’s semiconductor market is set to soar from ₹4.5 trillion in 2024 to ₹8.95 trillion by 2030, predicts the Indian Electronics and Semiconductor Association.
India’s semiconductor market is set to experience robust growth, with projections estimating an increase from approximately ₹4.5 trillion (US$52 billion) in 2024 to almost ₹8.95 trillion (US$103.4 billion) by 2030, according to a recent report by the Indian Electronics and Semiconductor Association (IESA).
Last week, right before the Union Budget 2025-26, the IESA unveiled their India Semiconductor Market Report 2030 during the Utkarsha Odisha Conclave 2025.
Sharing the ambitious growth trajectory of the Indian semiconductor market, Ashok Chandak, President of IESA, commended the critical role of government initiatives, including targeted incentives for semiconductor fabs (fabrication plants) and OSAT (outsourced semiconductor assembly and test) services.
He also noted that over US$21 billion in investments have been committed by IESA member companies in the past year, which will further propel India’s semiconductor capabilities.
“The market is valued at almost ₹4.5 trillion (US$ 52 billion) in FY23 and is on track to continue growing at a robust pace,” said Dr V. Veerappan, Chairman of IESA, emphasising that India’s semiconductor consumption market is expected to grow at a compound annual growth rate (CAGR) of 13 per cent through 2030.
The event, attended by prominent dignitaries from both the state and central governments, as well as industry leaders, saw the official launch of the report by Union Minister Ashwini Vaishnaw and Odisha Electronics Minister Dr Mukesh Mahaling.
The IESA, alongside its 45 member companies and experts, has worked together to compile this report.
Highlighting key sectors such as smartphones, information technology (IT), telecommunications, consumer electronics, automotive, aerospace, and defence, the report has analysed India’s semiconductor market from 2023 to 2030.
These sectors are poised to drive much of the growth, with mobile handsets, IT, and industrial applications contributing nearly 70 per cent of the industry’s revenue.
The report also provided recommendations for India to realise its semiconductor ambitions. These include:
- Extending the SEMICON India programme: The scheme should continue beyond the initial ₹865.7 billion (US$ 10 billion) allocation, with potential revisions to the design-linked incentive (DLI) scheme.
- Focusing on local value addition: India aims to achieve 25 per cent local value addition in electronics manufacturing by 2025-26 and 40 per cent by 2030, a target critical for reducing import dependency.
- High-priority chips: The report lists strategic products that align with India’s strengths and global market needs, especially in supporting semiconductor fabs and OSAT units.
- Unified product development schemes: Consolidating various initiatives under a unified Product Creation Initiative will streamline efforts to develop high-impact semiconductor products.
- Workforce development: The report stresses the importance of enhancing collaboration between industries and universities to build a skilled semiconductor workforce, which is crucial for future growth.
Vivek Tyagi, Head of IESA’s market research team, highlighted that focusing on local semiconductor design and manufacturing while reducing import reliance is vital to strengthening India’s position in the global electronics ecosystem. “Retaining economic value within India and minimising dependency on imports are key to the sector’s long-term success,” Tyagi said.
Chandak also urged increased investment in innovative R&D, particularly in high-priority products like smartphones, consumer durables, and routers. “This will enhance India’s market relevance and establish it as a leader in the global semiconductor sector,” he explained.
Dr Veerappan concluded by emphasising the importance of workforce development. “A skilled workforce is the backbone of India’s semiconductor aspirations. By investing in education and hands-on training, we can equip our youth to lead the sector’s transformation,” he added.
