India’s semiconductor market is expected to witness a significant expansion, growing at an annual rate of 13% and reaching $103.4 billion by 2030, according to the India Electronics and Semiconductor Association (IESA). The sector, currently valued at $52 billion in 2024, is being propelled by major industries such as mobile handsets, IT, telecommunications, consumer electronics, automotive, aerospace, and defense. Among these, mobile devices, IT, and industrial applications collectively contribute nearly 70% of the industry’s revenue and are anticipated to remain the primary growth drivers.
“The semiconductor market in India is projected to reach $52 billion in FY23 and maintain a steady 13% CAGR through 2030. Sectors like automotive and industrial electronics present vast opportunities for additional value,” stated IESA Chairman V Veerappan.
The report emphasizes the necessity of advancing research and development (R&D) in high-priority products such as smartphones, consumer electronics, and networking equipment like routers. It also highlights the importance of government support, particularly incentives for semiconductor fabrication plants (fabs) and outsourced semiconductor assembly and test (OSAT) units.
IESA President Ashok Chandak noted that its member companies have collectively invested over $21 billion in the past year to strengthen India’s semiconductor ecosystem. The report recommends extending the government’s semiconductor incentive scheme beyond its initial $10 billion allocation and revising the design-linked incentive program to support industry growth.
Additionally, IESA suggests that the government focus on increasing domestic value addition in semiconductor manufacturing, with a goal of achieving 25% local value addition by FY25 and 40% by 2030. These strategic measures aim to position India as a key player in the global semiconductor landscape.