India’s semiconductor market set to reach $200 Billion by 2035

India’s semiconductor market is projected to more than triple from nearly USD 64 billion in 2026 to USD 200 billion by 2035, according to an EY-IESA report recently released..The report, titled ‘Semicon India 2.0: From Capacity Creation to Ecosystem Leadership’, said the projected growth presents a major opportunity to convert rising domestic demand into manufacturing, innovation and stronger supply-chain resilience.
Consumer electronics currently accounts for around 30 per cent of India’s semiconductor market, followed by automotive at 16 per cent and industrial applications at 15 per cent. Emerging sectors such as artificial intelligence, data centres, telecommunications, electric mobility and advanced manufacturing are expected to further drive demand.The report noted that semiconductor imports rose more than fivefold from USD 5.7 billion in FY17 to USD 30.3 billion in FY25, recording a compound annual growth rate of 23 per cent.
India, meanwhile, has nearly 20 per cent of the world’s chip design engineers, providing a strong talent base for semiconductor design, manufacturing and commercialisation.
IESA President Ashok Chandak said India can combine its engineering talent, domestic electronics demand, design capabilities and growing manufacturing capacity with resilient global supply-chain partnerships.The report also highlighted the rapid expansion of electronics manufacturing. Total electronics production rose nearly sixfold from Rs 1.9 lakh crore in FY15 to Rs 11.3 lakh crore in FY25, while domestic manufacturing grew sevenfold and electronics exports increased elevenfold.The report identified advanced packaging, compound semiconductors, photonics and chip-to-system integration** as high-potential areas. It recommended integrated manufacturing clusters, stronger alignment between central and state policies and specialised talent-certification programmes to accelerate the sector’s growth.