India’s semiconductor market set to reach $103.4 billion by 2030

Electronics sector expansion and policy support to drive rapid growth

February 12, 2025

The sector, valued at US$52 billion in 2024-25, is expected to grow at a CAGR of 13% through 2030

Mobile handsets, IT, and industrial applications generate nearly 70% of revenue and will continue to be the main growth drivers

Automotive and industrial electronics present significant opportunities for value addition in India’s semiconductor industry

The government’s targeted incentives for semiconductor fabs and OSATs and increased R&D investment will be key to growth

India’s semiconductor market is poised for significant expansion, with projections indicating it will reach US$103.4 billion in the next five years, powering its US$400+ billion electronics industry. According to the Indian Electronics and Semiconductor Association (IESA) report, India Semiconductor Market Report 2030, the sector was valued at US$52 billion in 2024-25 and is expected to grow at a CAGR of 13% through 2030.

Mobile handsets, IT, and industrial applications continue to be the primary drivers of growth, contributing nearly 70% of the sector’s revenue. Additionally, automotive and industrial electronics present new value-addition opportunities, positioning India as a key player in the global semiconductor landscape.

Government policies are expected to be crucial in strengthening India’s semiconductor ecosystem. Industry leaders highlight the importance of targeted incentives for semiconductor fabs, outsourced semiconductor assembly and test (OSAT) facilities, and increased R&D investments and collaborative industry efforts. Over the past year, companies have committed more than US$21 billion in semiconductor projects, underscoring the sector’s growth momentum.

The report recommends extending the India Semiconductor Mission beyond its initial US$10 billion outlay and refining the Design-Linked Incentive (DLI) scheme to support domestic capabilities. Additionally, it suggests setting ambitious local value addition targets—25% by 2025-26 and 40% by 2030—under the electronics manufacturing PLI benefits to enhance India’s semiconductor self-sufficiency.

With continued policy support and industry collaboration, India will emerge as a global semiconductor hub, bolstering its electronics manufacturing capabilities and technological competitiveness.

Source: Economic Times

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