India’s semiconductor market to reach $300bn by 2035: Deloitte report
India’s semiconductor market is estimated at $45-50 billion in FY 2024-25 and has been growing at a CAGR of 20% in the last three years. File | Photo Credit: Getty Images/iStockphoto
According to a report by Deloitte, India’s semiconductor market is expected to almost triple to $120 billion by 2030 and reach $300 billion by 2035, driven by exponential adoption of Artificial Intelligence (AI), automotive growth and data center expansion.
The report titled ‘Technology, Media and Telecommunications Forecasts 2026’ states that India, which currently imports more than 90 percent of its semiconductor needs, is ready for a structural change as local production is expected to meet more than 60 percent of domestic demand by the end of 2035.
“India’s semiconductor market is estimated to be $45-50 billion in FY 2024-25 and has been growing at a CAGR of 20% in the last three years. The market is expected to reach $120 billion by 2030 and $300 billion by 2035, driven by artificial intelligence, automotive, data centers and electronics manufacturing. By 2035, India will reach $4-5 billion.” “It is expected to host 8-10 silicon factories, 1-2 demonstration factories and 20-25 OSAT facilities, supported by ISM and State level incentives.” The report stated that 60% of the country’s domestic semiconductor demand is expected to be met by local production by 2035.
By 2035, various segments such as mobile phones, automotive, computing and data centers are expected to account for more than 70% of the total semiconductor demand in the country.
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Supported by the government’s India Semiconductor Mission (ISM), the industry has already attracted more than $19 billion in manufacturing investment across 10 approved projects, including eight Outsourced Semiconductor Assembly and Testing (OSAT) facilities, a compounding plant and a semiconductor factory.
Deloitte pointed out that 18-20 other proposals with a total investment of $20-25 billion are under construction at various stages.
“Over the next five years, the semiconductor industry in India is estimated to attract an additional $50 billion in capital investment,” the report said. The report stated that another investment of 75-80 billion dollars is expected between 2030 and 2035, which will enable the expansion of the ecosystem.
The expansion of the semiconductor ecosystem will also fuel major job creation. It is estimated that the sector will provide approximately two million employment opportunities by 2035. About 30% of this will be in manufacturing operations, 30% in design services, and the remaining 40% in the rest of the value chain.
“To support this growth, the industry will need to train 4,00,000 to 5,00,000 people annually through relevant courses, factory and ATMP laboratories and training facilities,” the report said. But Deloitte warned that maintaining this momentum will largely depend on execution.
The report recommended that the policy environment should evolve from a time-bound incentive scheme to a structurally embedded national program to ensure funding certainty beyond annual budget cycles.
He also emphasized the need for better coordination between the Center and states to implement a single-window implementation framework for land, utilities and infrastructure delivery.
It was published – 18 March 2026 13:36 IST
