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India's semiconductor market might surge to $300B by 2035: Deloitte
18 Mar 2026

India's semiconductor market is set to witness explosive growth in the coming decade, with projections estimating it will reach a whopping $120 billion by 2030 and further expand to $300 billion by 2035.

The forecast comes from a recent report by Deloitte, which highlights how AI adoption, automotive electronics expansion, data center growth, and electronics manufacturing are all contributing factors.

Major shift in local production
Market shift

The report also predicts a major structural shift in India's chip ecosystem.

By 2035, local production is expected to meet over 60% of domestic semiconductor demand.

Currently, the country imports over 90% of its semiconductor needs.

In FY2024-25, India's semiconductor market is estimated at $45.5 billion and has been growing at a compound annual growth rate (CAGR) of 20% over the last three years.

Key segments driving demand
Sector growth

By 2035, segments like mobile phones, automobiles, computing, and data centers are expected to account for over 70% of India's total semiconductor demand.

The country's ambitions in this sector are being supported by the India Semiconductor Mission and state-level incentives.

So far, the sector has attracted more than $19 billion in manufacturing investments across 10 approved projects including eight OSAT facilities, one compound fab, and one semiconductor fab.

Investments pouring into the sector
Investment pipeline

The report further notes that 18-20 more proposals worth $20-25 billion are in the pipeline.

Over the next five years, India's semiconductor industry is expected to draw another $50 billion in capital investment.

Between 2030 and 2035, an extra $75-80 billion is likely to flow into the ecosystem, enabling broader capacity expansion.

Job creation on the horizon
Job creation

The semiconductor industry's expansion is also expected to create around two million jobs by 2035.

Nearly 30% of these jobs are tipped to come from manufacturing operations, another 30% from design services, and the rest 40% from other parts of the semiconductor value chain.

To support this scale-up, India will have to train between 400,000 and 500,000 people every year through specialized courses and training facilities.

Need for strong execution and coordination
Strategic recommendations

The report also emphasizes that the long-term success of India's semiconductor push shall depend on strong execution.

It recommends that the policy framework should evolve into a structurally embedded national program with greater funding certainty.

Deloitte also calls for better coordination between the Centre and states, including a single-window execution framework for land, utilities, and infrastructure delivery.