India’s Semiconductor Drive Set to Create $300 Billion Market by 2035

New Delhi — India’s semiconductor sector is projected to expand dramatically, reaching USD 120 billion by 2030 and USD 300 billion by 2035, fueled by the rapid adoption of artificial intelligence (AI), growth in the automotive sector, and the expansion of data centres, according to a Deloitte report titled Technology, Media, and Telecommunications Predictions 2026.

Structural Shift Towards Local Production

Currently, India imports over 90% of its semiconductor requirements, but local manufacturing is expected to meet more than 60% of domestic demand by 2035. The report forecasts that India will host 4-5 silicon fabs, 8-10 compound fabs, 1-2 display fabs, and 20-25 OSAT facilities, supported by the India Semiconductor Mission (ISM) and state-level incentives.

Investment Pipeline and Ecosystem Expansion

The sector has already attracted USD 19 billion in approved manufacturing investments across 10 projects, including OSAT facilities, a compound fab, and a semiconductor fab. An additional USD 20-25 billion in proposals is under consideration. Deloitte predicts USD 50 billion in capital investment over the next five years and USD 75-80 billion between 2030 and 2035, which will significantly expand India’s semiconductor ecosystem.

Sector-Wide Impact on Employment

The growth of India’s semiconductor market is expected to generate approximately 2 million jobs by 2035, with employment distributed across manufacturing, design services, and the broader value chain. To support this, the industry will need to train 400,000 to 500,000 people annually in relevant skills, including fab operations and ATMP labs.

Policy Recommendations for Sustained Growth

Deloitte cautioned that continued growth depends on effective execution. The report recommends transforming short-term incentives into a structurally embedded national program, ensuring funding certainty beyond annual budgets. It also emphasized stronger coordination between the central and state governments to implement a single-window framework for land acquisition, utilities, and infrastructure development.