India's semiconductor market to reach $300 billion by 2035

India’s semiconductor market is projected to witness significant expansion over the next decade, according to a Deloitte report. The market, currently valued at $45–50 billion in FY2024-25, is expected to reach $120 billion by 2030.

It is further projected to scale up to $300 billion by 2035, driven by demand from AI, automotive, and data centre segments. The report highlights a structural shift towards domestic manufacturing and ecosystem development.

Market Growth Projections and Key Drivers

The Deloitte report outlines strong growth momentum, supported by technological and industrial demand. Over the past 3 years, India’s semiconductor market has grown at a CAGR of 20%. The next phase of expansion is expected to be driven by increasing digitisation and advanced computing needs.

Key growth drivers include:

• Artificial Intelligence (AI) adoption across industries
• Automotive electronics and EV ecosystem growth
• Expansion of data centres and cloud infrastructure
• Rising electronics manufacturing in India

By 2035, segments such as mobile phones, automotive, computing, and data centres are expected to account for over 70% of semiconductor demand. This concentration reflects the increasing integration of chips across core economic sectors.

Shift Towards Domestic Manufacturing

India currently imports over 90% of its semiconductor requirements, highlighting significant external dependence. By 2035, more than 60% of domestic demand is expected to be met through local production, indicating a shift towards self-reliance.

Planned infrastructure includes 4–5 silicon fabs, 8–10 compound semiconductor fabs, 1–2 display fabs and 20–25 OSAT facilities. This transition, supported by the India Semiconductor Mission and state incentives, reflects a structural transformation in the electronics ecosystem.

Investment Pipeline and Capital Inflows

The semiconductor sector has attracted over $19 billion in investments across 10 approved projects, including 8 OSAT facilities, 1 compound fab and 1 semiconductor fab. An additional 18–20 proposals worth $20–25 billion are currently under evaluation.

Investment is projected to reach $50 billion over the next 5 years and an additional $75–80 billion between 2030 and 2035. These capital inflows are expected to drive capacity expansion, strengthen supply chains and build core technology infrastructure.

Read More: India Explores Semiconductor Collaboration in Eindhoven Amid Growing Tech Ties.

Conclusion

India’s semiconductor market is projected to grow from $45–50 billion in FY2024-25 to $300 billion by 2035, supported by strong demand and policy backing. The sector is expected to transition from import dependency to increased domestic production, with over 60% of demand met locally.

Significant investments and infrastructure development are already underway, alongside a growing project pipeline. The expansion is also expected to generate large-scale employment and skill development requirements.

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