India’s semiconductor market is projected to grow from $52 billion (₹4.5 lakh crore) in 2024 to $103.4 billion (₹9 lakh crore) by 2030, according to a report by the India Electronics and Semiconductor Association (IESA).
This growth will be driven by key industries such as handsets, IT, telecom, consumer electronics, automotive, aerospace and defence. Mobile handsets, IT and industrial applications alone account for nearly 70% of the semiconductor industry’s revenue and are expected to remain the primary growth drivers.
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“India’s semiconductor consumption market is valued at $52 billion in 2024-25 and is expected to grow at a robust CAGR of 13% through 2030. Sectors like automotive and industrial electronics present significant value-addition opportunities,” said V Veerappan, chairman of IESA.
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The report underscores the need for innovative research and development (R&D) targeting high-priority products such as smartphones, hearables, consumer durables and routers.
“The government’s targeted incentives for fabs and OSATs, increased R&D investments, and collaborative industry initiatives are key to propelling India’s semiconductor sector forward, with significant investment commitment of over $21 billion by IESA member companies in the last one year,” said Ashok Chandak, president of IESA.
The report highlights key recommendations for achieving India’s semiconductor ambitions. These includes continuity in the semiconductor incentive scheme beyond the initial outlay of $10 billion and design linked incentive scheme with some modifications.
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IESA said the government needs to prioritise local value addition, and set a target of 25% local value addition by 2025-26 and 40% by 2030 in electronics manufacturing.
It said that an unified scheme for product development can drive high-impact semiconductor products. Further, workforce development is a key area that needs focus, according to the report.
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