The semiconductor market in India is projected to grow to $103.4 billion over the next five years, powering the $400+ billion electronics market, the Indian Electronics and Semiconductor Association (IESA) said in its report ‘India Semiconductor Market Report 2030’.

The country’s semiconductor consumption market was valued at $52 billion in 2024-25 and is expected to grow at a CAGR of 13% through 2030.

Sectors like automotive and industrial electronics present significant value-addition opportunities while mobile handsets, IT and industrial applications, which together contribute nearly 70% of the revenue, remain the primary growth drivers.

Ashok Chandak, president of IESA, said that the government policies will play a huge role in fostering a strong semiconductor design and manufacturing step up.

“The government’s targeted incentives for Fabs and OSATs, increased R&D investments, and collaborative industry initiatives are key to propelling India’s semiconductor sector forward,” with significant projects investment commitment of over $21 billion by companies in the past year, he said.

The report also highlights key recommendations for achieving India’s semiconductor ambitions which include continuing the India Semiconductor Mission initiative beyond the initial outlay of $10 billion and DLI scheme with some modifications.

It added that setting a target of 25% local value addition by 2025-26 and 40% by 2030 in electronics manufacturing PLI benefits would be crucial.