India Aims for $150 Billion Semiconductor Industry by 2035, Says NITI Aayog

India should focus on establishing a $120-150 billion semiconductor value chain by 2035, according to a NITI Aayog report. Leadership and purpose, rather than participation, are highlighted as key components to achieving this goal.

The report urges the Indian government to contribute at least one-third of the investment needed to secure projects and inspire long-term investor confidence. The semiconductor market in India is expected to reach approximately $200 billion by 2035, but current domestic supply covers only 5-10% of demand, exposing critical sectors to supply-chain risks.

The report emphasizes India's need for technological sovereignty due to the increasing dependency on imported technologies. Vice Chairman Ashok Kumar Lahiri remarked on the importance of building infrastructure layers for economic and national security, and aiming for domestic capabilities in designing and integrating semiconductors.

The global semiconductor industry's growth is poised to enhance with next-generation technologies. For India, this sector is a historical opportunity to enhance economic resilience and strategic autonomy, especially with evolving geopolitical tensions affecting global supply chains.

(With inputs from agencies.)