India semiconductor market forecast: Deloitte sees USD 300 billion by 2035

Deloitte projected India’s semiconductor market to nearly triple to USD 120 billion by 2030. Deloitte said the market could expand further to USD 300 billion by 2035. The report linked the rise to wider use of artificial intelligence AI. Deloitte also cited stronger automotive demand and more data centres.

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The report said India still imports over 90 per cent of its semiconductor requirement. Deloitte expected this to change as domestic capacity increased. Local production was projected to supply more than 60 per cent of demand by end-2035. The estimates appeared in Deloitte’s report titled Technology, Media, and Telecommunications Predictions 2026.

India semiconductor market size and demand drivers

Deloitte estimated India’s semiconductor market at USD 45–50 billion in FY2024–25. Deloitte said the market rose at a 20 per cent CAGR over three years. Deloitte linked growth to electronics manufacturing and rising computing needs. Deloitte also pointed to AI, automotives, and data centres as key demand drivers.

By 2035, Deloitte expected mobile phones, automotive, computing, and data centres to drive most demand. Deloitte said these segments could form more than 70 per cent of total semiconductor demand. The report described this demand mix as a major reason for capacity plans. It also noted India’s broader electronics manufacturing push.

India Semiconductor Mission ISM projects and investment pipeline

Deloitte said government support under the India Semiconductor Mission ISM helped draw over USD 19 billion. That investment covered 10 approved manufacturing projects. Deloitte listed eight OSAT facilities among the approvals. It also included one compound fab and one semiconductor fab.

Deloitte added that more proposals were moving through the approval process. The report said another 18-20 proposals were in the pipeline. Deloitte put the combined value at USD 20-25 billion. The report said these proposals were at different stages across locations and project types.

Semiconductor ecosystem expansion plans in India

Looking ahead, Deloitte predicted large capital inflows into the semiconductor industry. The report forecast an additional USD 50 billion over the next five years. Deloitte also expected USD 75-80 billion more between 2030 and 2035. The report said this later funding would support wider ecosystem expansion.

Deloitte said India could host multiple manufacturing units by 2035. The report projected 4–5 silicon fabs and 8–10 compound fabs. It also expected 1–2 display fabs. Deloitte added that India could have 20–25 OSAT facilities, backed by ISM and state incentives.

Semiconductor jobs and training needs in India

The report said the growing ecosystem would create large employment opportunities. Deloitte forecast about 2 million jobs by 2035. The report expected 30 per cent in manufacturing operations. Another 30 per cent was linked to design services. The remaining 40 per cent was expected across the wider value chain.

Deloitte said the sector would need major talent development to meet demand. The report said India must train 4,00,000 to 5,00,000 people each year. Deloitte linked this to relevant courses and hands-on training. It also cited fab and ATMP labs and other training facilities.

Deloitte recommendations for India semiconductor policy execution

Deloitte cautioned that future gains depended on strong execution. The report said policy should shift from time-bound incentives to a national programme. Deloitte said this would improve funding certainty beyond annual budgets. The report also urged better Centre-state coordination for a single-window framework on land, utilities, and infrastructure delivery.

With inputs from PTI