The global semiconductor industry, currently valued at $750 billion, is projected to double in size within the next 6-7 years. India is well-positioned to capitalize on this growth due to its abundant workforce, access to green energy, and expanding chemical manufacturing ecosystem.
India's competitive advantages include a skilled workforce with nearly a third of the global semiconductor industry talent. The country also boasts a significant clean energy capacity, with approximately 42% of its power generation coming from renewable sources. Additionally, India has one of the largest chemical manufacturing ecosystems in the world, located in Dahej, Gujarat.
The Indian government has received support from global industry leaders, with executives from 45 semiconductor companies expressing their interest in investing in India. The country's first major chip fabrication facility, being established by the Tatas in Dholera, Gujarat, is expected to commence operations by December 2026. Two additional plants in Gujarat and Assam are planned for semiconductor assembly.
Despite the focus on manufacturing, the government emphasizes the importance of both manufacturing and tech services. The government plans to create a comprehensive policy framework for global capability centers (GCCs) and invest in both sectors to generate significant employment opportunities.
The government's vision for the technology domain extends beyond semiconductors, encompassing 6G and artificial intelligence. India aims to establish itself as a global thought leader in these areas. The government has developed a framework for the digital economy, including the Digital Personal Data Protection Act, the Telecom Act, and the proposed Digital India Act.
The government's long-term plan, Viksit Bharat 2047, aims to transform India into a developed country by 2047. This vision involves sustainable and transformative changes in citizens' lives through policy interventions, investments, technology adoption, and government process re-engineering.