In the fiscal year 2023–2024, India imported nearly ₹1.71 lakh crore (about USD 20.7 billion) worth of semiconductors, indicating a heavy reliance on foreign suppliers to supply the nation’s expanding demand for electronic components. Semiconductor chips, integrated circuits, memory chips, components of electronic integrated circuits, micro assemblies, and amplifiers are only a few of the many goods included in this figure.
With India’s imports increasing in the last three years, the rise in semiconductor imports is a part of a larger trend. In FY 2021-22, imports increased from ₹67,497 crore to almost ₹1 lakh crore, and in FY 2022-23, they were almost ₹1.3 lakh crore.
The Indian government is aggressively exploring measures to support domestic semiconductor manufacture in light of this significant reliance on imports. ₹76,000 crore has been allotted to the SEMICON India Program in order to enhance local production capacities. Five semiconductor assembly and manufacturing projects totaling ₹1.52 lakh crore were recently approved.
In order to improve its semiconductor ecosystem, India is also establishing foreign alliances. The goal of agreements with nations like the US and Singapore is to enhance knowledge transfer and create cooperative fabrication units.
By assisting domestic companies and luring in foreign investment, the government hopes to become self-sufficient in the production of semiconductors. This includes efforts to set up assembly/testing facilities and semiconductor manufacturing factories (FABS) in several Indian states.
The government is actively attempting to build indigenous manufacturing capabilities through financial incentives and international cooperation, as evidenced by India’s significant imports of semiconductors.
