Indian Economy News

India's semiconductor market to grow at 13%, reach Rs. 8,95,134 crore (US$ 103.4 billion) by 2030: IESA

  • IBEF
  • January 30, 2025

India’s semiconductor market is anticipated to expand from Rs. 4,50,164 crore (US$ 52 billion) in 2024 to Rs. 8,95,134 crore (US$ 103.4 billion) by 2030, according to a report by the India Electronics and Semiconductor Association (IESA). This growth is attributed to major sectors such as mobile handsets, information technology (IT), telecommunications, consumer electronics, automotive, aerospace, and defence. Mobile handsets, IT, and industrial applications alone contribute nearly 70% of the semiconductor industry’s revenue. They are expected to remain the primary drivers of growth. “India’s semiconductor consumption market is projected to reach Rs. 4,50,164 crore (US$ 52 billion) billion in FY23 and is expected to grow at a strong compound annual growth rate (CAGR) of 13% through to 2030. Sectors such as automotive and industrial electronics present considerable opportunities for added value,” commented the Chairman of IESA, Mr. V Veerappan. 

The report highlights the importance of innovative research and development (R&D) focused on high-priority products, including smartphones, consumer durables, and routers. “The government’s targeted incentives for fabs and OSATs, alongside increased R&D investments and collaborative industry initiatives, are crucial in advancing India’s semiconductor sector. IESA member companies have committed over Rs. 1,81,797 crore (US$ 21 billion) in investment in the past year,” said President of IESA, Mr. Ashok Chandak. The report outlines several key recommendations to achieve India’s semiconductor ambitions, including continuing the semiconductor incentive scheme beyond the initial Rs. 86,570 crore (US$ 10 billion) allocation and revisions to the design-linked incentive scheme. IESA has also outlined the need for the government to prioritize local value addition, setting a target of 25% local value addition by FY25 and 40% by 2030 in electronics manufacturing. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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