India is pushing for a 100 per cent domestic manufacturing in the electronics sector, from semiconductor chips to finished goods, according to a report by Haitong International Research.
As per the report the government-backed program has already attracted investments worth Rs 1.5 trillion (USD 18 billion) in the semiconductor industry.
The report stated that Prime Minister Narendra Modi has set an ambitious target for the electronics industry with an aim to expand the sector to USD 500 billion from its current USD 150 billion.
In addition, it stated that the government plans to create 6 million jobs in the electronics industry over the next few years, signalling the potential for economic growth and job creation.
“Government backed initiatives has already attracted investments of more than Rs.1.5 trillion (USD18bn) in the semiconductor industry. Prime Minister Modi has even bigger goal to grow the Indian electronic industry to USD500bn (currently at USD150bn) in the next decade, creating over 6mn jobs,” the Haitong International Research said.
As per the report India is the eighth country to launch a dedicated semiconductor program and is one of the largest consumers of semiconductor chips globally. It added that to encourage domestic production, the Indian government is offering 50 per cent financial support to build semiconductor manufacturing facilities which is further attracting investments.
The report also emphasized the potential growth in other sectors as India’s semiconductor manufacturing expands. In particular, companies involved in the chemical and air gas industries stand to benefit greatly from this development.
According to the report, chemicals and air gases play a crucial role in the semiconductor manufacturing ecosystem, providing essential materials required for various stages of chip production.
“We witness first-hand the enthusiasm and potential that lies ahead for India’s semiconductor industry. This is particularly important for chemicals and air gas businesses, as they form a critical part of the ecosystem,” the report stated.
The expansion of these industries will likely create additional jobs and drive further investments, making the semiconductor push a catalyst for economic growth across several key sectors.
Tata Electronics is setting up India’s first semiconductor foundry in Dholera, Gujarat at an investment of USD11bn.