India targets $200 billion semiconductor sector by 2035 to curb imports

A NITI Aayog report projects that India’s semiconductor market could reach about $200 billion by 2035. Currently 90‑95% of chip needs are met through imports, creating a $150 billion import bill between FY17 and FY25 and a risk of $240 billion annually by 2035 if self‑reliance is not achieved.

The think‑tank says building a competitive ecosystem will require $135‑180 billion of investment over the next decade for fabs, advanced packaging, compound semiconductors, design infrastructure and supporting materials. It recommends that the government fund at least one‑third of this amount, provide stable policies and a single‑window clearance system, and secure critical minerals.

Domestic chip production is framed as essential for national security, defence programmes, 5G/6G rollout, AI, healthcare and precision agriculture. The report notes India already hosts a sizable design workforce and is advancing assembly and packaging facilities, with the first fabrication plant in Gujarat’s Dholera slated for 2028. Strategic partnerships with the US, Japan, Taiwan and the EU are suggested to enable technology transfer and integrate India into global supply chains.