India will be self-reliant in semiconductor by 2035: 300 billion dollar market, local production will increase by 60%

New Delhi: India’s semiconductor market could nearly triple to $120 billion by 2030 and reach $300 billion by 2035. This growth will be driven by the rapid expansion of artificial intelligence (AI), automotive sector and data centers.

This information has been given in a report by accounting and consulting company Deloitte. According to the ‘Technology, Media and Telecommunications Predictions 2026’ report, India currently imports more than 90 percent of its semiconductor needs, but this is likely to change by 2035. Domestic production can meet more than 60 percent of the country’s demand by then.

The report says that India’s semiconductor market is estimated between $ 45-50 billion in the financial year 2024-25. Its annual growth rate in the last three years has been around 20 percent. The market will reach $120 billion by 2030 and $300 billion by 2035, driven by AI, automotive, data centers and electronic manufacturing.

According to the report, sectors like mobile phones, motor vehicles, computing and data centers will account for more than 70 percent of the country’s total semiconductor demand by 2035. So far, investment of more than $19 billion has come in this sector through 10 approved projects.

According to the report, an additional investment of $ 50 billion is expected in this industry in the next five years, while between 2030 and 2035, an additional investment of $ 75-80 billion can happen, which will expand the entire environment. This expansion will also create employment on a large scale. The sector is expected to generate around 20 lakh jobs by 2035, of which 30 per cent will be in manufacturing, 30 per cent in design services and 40 per cent in other value chain activities.

However, the report cautions that effective enforcement will be necessary to maintain this progress. For this, the need to change the policy framework from a time-bound incentive scheme to a permanent national program and to ensure better coordination between the Center and the states was emphasized.