Indian Economy News

Semicon India Programme Advances with Approval of 10 Projects; IT Sector Revenue Rises to US$ 283 Billion

The Indian government has moved ahead with the Semicon India Programme, which is in line with the Prime Minister Mr. Narendra Modi’s Atmanirbhar Bharat, make in India, and Make for the world. The focus is to develop a complete ecosystem for semiconductor and display manufacturing. This began with a total outlay of Rs. 76,000 crore (US$ 8.44 billion) and has already approved 10 major projects. These account for approximately Rs. 1.6 Lakh crore (US$ 17.78 billion) of expected investments, including 2 fab units and 8 packaging units. The deployment includes advanced technologies such as CMOS silicon fabs, Silicon Carbide fabs, memory, and advanced packaging, with several projects in different stages of implementation. In addition, 24 chip-design projects have been supported through startups, of which 16 have already completed tapeouts, and 13 have received venture capital funding. More than 350 universities have been provided access to essential Electronic Design Automation (EDA) tools, which have benefited 65,000 engineers and enhanced the semiconductor design and development talent pool in India. The India Semiconductor Mission (ISM) is the nodal agency to assess and recommend these strategic projects.
Apart from the semiconductor sector, the IT sector continues to be a prime growth driver. National Association of Software and Services Companies (NASSCOM) estimates put the total IT revenue at US$ 283 billion for 2024-25, largely due to robust export demand and a robust domestic market. The exports are estimated to be about US$ 224.4 billion, with the domestic market accounting for US$ 58.2 billion. This sustained growth trend is a result of broad-based growth across the services and software segments. The sector’s sustained growth is further aided by continued Foreign Direct Investment in both Computer Software and Hardware and associated services.

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