The Asia-Pacific region accounts for nearly 60 per cent of global semiconductor production, maintaining its dominance in the sector. Against this backdrop, India is rapidly positioning itself as a significant player, with its semiconductor market valued at USD 34.3 billion in 2023 and projected to grow nearly threefold to USD 100.2 billion by 2032. This surge reflects a robust CAGR of 20 per cent, outpacing the global industry’s expansion, which is expected to reach USD 1 trillion by 2030, growing at around 10 per cent annually between 2023 and 2030, as highlighted in a Union Bank of India Research report.
India’s growing importance in the global semiconductor supply chain is already evident. In 2022, the country exported semiconductor devices worth USD 516 million, with the United States, Hong Kong, and South Africa among the leading destinations. At the same time, imports far outweighed exports at USD 4.55 billion, with China, Singapore, and Vietnam serving as key suppliers, underlining India’s current dependence on external sources while it builds domestic capacity.
Looking ahead, India’s semiconductor demand will be largely driven by telecom and industrial applications, accounting for nearly two-thirds of overall consumption. Growth in mobile devices, IT hardware, consumer electronics, and industrial equipment will further accelerate this trend. Moreover, the adoption of emerging technologies such as 5G, artificial intelligence, and electric vehicles is expected to significantly boost demand, reinforcing India’s role as a critical hub in the evolving global semiconductor landscape.
