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India targets high-tech manufacturing growth with semiconductor and AI incentives
India is positioning itself as a global hub for high-tech manufacturing, specifically targeting the semiconductor and artificial intelligence sectors. During a visit to Tokyo, Commerce and Industry Minister Piyush Goyal announced that the government is developing a framework to exempt certain high-tech industries from mandatory Bureau of Indian Standards (BIS) certification. This measure aims to facilitate the import of essential equipment and components required to establish manufacturing facilities in India.
The semiconductor market in India is projected to grow at a compound annual growth rate of 20%, potentially reaching $155 billion by 2031. While India holds a strong position in chip design—employing nearly one-fifth of the global workforce—it remains heavily dependent on imports, with approximately 95% of its semiconductor demand met by foreign markets.
In addition to semiconductors, India is pitching itself as a destination for data centers, citing $200 billion in investment commitments from global hyperscalers. The government is also focusing on strengthening the broader electronics ecosystem, including display technology and indigenous components for space missions, to move beyond simple assembly toward high-value manufacturing.
Entities
Ashwini Vaishnaw · Bureau of Indian Standards · India · India Semiconductor Mission · Japan · Kotak Mahindra Mutual Fund · Piyush Goyal · Semiconductor Laboratory · Tokyo Electron
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 3 SOURCES] The Indian government is developing a framework to exempt high-tech sectors from Bureau of Indian Standards (BIS) certification for equipment and components. hindi.business-standard.com · www.newsbytesapp.com · www.news18.com
- [○ 1 SOURCE] India’s semiconductor market is projected to reach $155 billion by calendar year 2031, growing from an estimated $62 billion in 2026. www.electronicsforyou.biz
- [○ 1 SOURCE] India has received approximately $200 billion in investment commitments for data centers from global hyperscalers. www.newindianexpress.com
- [○ 1 SOURCE] Approximately 95% of India's semiconductor demand is currently met through imports from markets including China, Taiwan, South Korea, and Singapore. competitiveness.in
- [○ 1 SOURCE] India possesses approximately 300,000 chip designers, which accounts for nearly 20% of the global chip-design workforce. www.electronicsforyou.biz