India's Semiconductor Revolution: A $300 Billion Opportunity by 2035

India's semiconductor market is projected to expand to USD 300 billion by 2035, driven by AI, automotive growth, and data center expansion. Local production is set to meet 60% of domestic demand. The sector is expected to create millions of jobs and attract substantial investment with strategic government support.

India's semiconductor industry is on the brink of a major transformation, with its market forecasted to grow to USD 300 billion by 2035. This surge is largely attributed to the increasing adoption of artificial intelligence, advancements in automotive technology, and the expansion of data centers, according to a Deloitte report.

Currently reliant on imports for over 90% of its semiconductor needs, India is moving towards a substantial shift as domestic production is predicted to fulfill 60% of the nation's demand by 2035. By this period, the country is expected to accommodate several silicon fabs, compound fabs, display fabs, and OSAT facilities, courtesy of initiatives like the India Semiconductor Mission (ISM).

The semiconductor sector is anticipated to generate around 2 million jobs by 2035, necessitating the training of half a million individuals annually. However, Deloitte warns that the realization of these projections hinges on the effective execution of policies and improved coordination between government levels to create an enabling environment for sustained growth.

(With inputs from agencies.)