India’s semiconductor market is set to grow to $103.4 billion by 2030, supporting the $400+ billion electronics sector, according to IESA’s India Semiconductor Market Report 2030. Valued at $52 billion in 2024-25, the sector is expected to grow at a 13% CAGR. Mobile handsets, IT, and industrial applications drive 70% of revenue, with opportunities in automotive and industrial electronics. IESA highlights government incentives, $21 billion in investments, and ambitious local value-addition targets as key factors for India’s global semiconductor ambitions.
India's semiconductor industry is on a promising trajectory, with market projections estimating growth to 103.4 billion in the next five years. This advancement is set to power the country’s thriving electronics sector, valued at over 400 billion, according to the Indian Electronics and Semiconductor Association (IESA) in its report, India Semiconductor Market Report 2030.
Currently, the semiconductor consumption market in India stands at $52 billion for the year 2024-25. With a robust compound annual growth rate (CAGR) of 13%, the sector is poised to expand significantly by the end of the decade.
Key drivers of this growth include mobile handsets, IT, and industrial applications, which collectively account for approximately 70% of the industry's revenue. Additionally, emerging opportunities in automotive and industrial electronics are expected to bring substantial value to the ecosystem.
Ashok Chandak, president of IESA, emphasized the importance of government policies in fostering growth. “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,” he stated. Chandak also highlighted the impressive investment commitments of over $21 billion made by companies in the past year.
The report outlines several strategic recommendations to bolster India’s semiconductor ambitions. These include the continuation of the India Semiconductor Mission beyond the initial $10 billion outlay and optimizing the Design-Linked Incentive (DLI) scheme. Furthermore, it suggests setting ambitious targets for local value addition in electronics manufacturing, aiming for 25% by 2025-26 and 40% by 2030 under the Production-Linked Incentive (PLI) benefits.
With a clear roadmap and collaborative efforts from stakeholders, India is well-positioned to emerge as a global player in the semiconductor industry, driving innovation and economic growth for years to come.
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