India’s semiconductor story is entering a transformation phase, shifting from ambition to execution, but the country still depends heavily on imports. According to a new NITI Frontier Tech Hub roadmap India’s semiconductor market could reach about USD 200 billion by 2035, while nearly 90-95 per cent of current demand is still met through imports.
The Big Bet
The report mentions that semiconductors are now a core part of economic power, national security and digital sovereignty. It says the global semiconductor market is expected to cross USD 1.5 trillion by 2035, while India’s demand is projected to grow at a CAGR of 19 per cent and It will touch around USD 90 billion by FY2030 and more than USD 200 billion by FY2035.
The opportunity is large, but also the risk. India spent almost USD 150 billion importing semiconductor products between FY17 and FY25, and the report also warns that annual import costs could rise to USD 240 billion by 2035 if current trends of import continue.
The roadmap was released by the NITI Frontier Tech Hub in the presence of Finance Minister Nirmala Sitharaman and Electronics & IT Minister Ashwini Vaishnaw. It outlines a 10-year strategy to build a USD 120-150 billion domestic semiconductor value chain by 2035, anchored around five strategic pillars—frontier R&D and design IP, policy and investment, production, talent development, and trusted international partnerships.
Where India Stands
India’s semiconductor landscape is undergoing a significant transformation. The country’s first fabrication plant is expected to commence production by 2028. While leading firms are committing investments in the assembly and packaging segment, global fabless design majors have their captive design centres in India, leveraging the country’s deep pool of skilled professionals, who account for 20 per cent of the global semiconductor design workforce.
That gives India a meaningful base in design, even though manufacturing remains at a nascent stage and domestic supply still lags far behind demand. India should focus on areas where it can win faster, such as advanced packaging, compound semiconductors, design leadership and wide-bandgap materials like SiC and GaN.
The report also marks what the government describes as India's shift from "ecosystem creation" to "ecosystem deepening". Rather than focusing solely on attracting investments, the strategy seeks to strengthen capabilities across chip design, materials, manufacturing, packaging, research and development, and skilled talent, while positioning India as a trusted partner in global semiconductor supply chains.
What The Roadmap Says
The roadmap sets a 2035 vision of building a USD 120-150 billion semiconductor value chain and becoming a top-three global hub for OSAT and advanced packaging. It also says India should aim for 15-25 per cent chip self-sufficiency by 2030 and 35-50 per cent by 2035, while retaining 35-70 per cent of value in each chip consumed in India depending on the time horizon.
A key message of the report says “India should target becoming the ecosystem player that the global semiconductor industry cannot run without”. The document says India must move from being a downstream consumer to a co-creator of frontier technologies.
Why it matters
Semiconductors are no longer just components but the “foundational currency of geopolitical power, economic competitiveness and national security”. For policymakers and investors, the message is clear: India’s chip challenge is not only industrial, but strategic. |
