New Delhi: India is advocating for a complete domestic manufacturing approach within the electronics sector, encompassing semiconductor chips to finished products, as reported by Haitong International Research.
The report indicates that a government-sponsored initiative has successfully attracted investments amounting to Rs 1.5 trillion (USD 18 billion) into the semiconductor sector.
Furthermore, the report highlights that Prime Minister Narendra Modi has established an ambitious target for the electronics industry, aiming to expand its value to USD 500 billion from its current USD 150 billion.
Additionally, the report notes that the government intends to generate 6 million jobs within the electronics industry over the forthcoming years, indicating a significant potential for economic growth and employment creation.
"Government-backed initiatives have already drawn in investments exceeding Rs.1.5 trillion (USD18bn) into the semiconductor sector. Prime Minister Modi has even more ambitious goals for the Indian electronics industry, aiming to increase its value to USD500 billion (currently at USD150 billion) within the next decade, which would also lead to the creation of over 6 million jobs," the report stated.
The report further points out that India is among the eight countries to launch a dedicated semiconductor program and is among the largest consumers of semiconductor chips globally. It added that to promote domestic production, the Indian government is providing a 50% financial incentive for the establishment of semiconductor manufacturing facilities, which in turn is attracting further investments.
Moreover, the report underscores the potential for growth in other sectors as India's semiconductor manufacturing capacity expands. Specifically, businesses involved in the chemical and air gas industries are expected to benefit significantly from this development.
The report also highlights the critical role of chemicals and air gases within the semiconductor manufacturing ecosystem, as they supply essential materials required at various stages of chip production.
"We are witnessing firsthand the enthusiasm and potential that India's semiconductor industry holds. This development is particularly significant for businesses in the chemical and air gas sectors, as they are integral to the ecosystem," the report stated.
The growth of these sectors is anticipated to create additional employment opportunities and stimulate further investments, thereby making the push for domestic semiconductor manufacturing a catalyst for economic growth across multiple key sectors.
Tata Electronics is in the process of establishing India's first semiconductor foundry in Dholera, Gujarat, with an investment of USD11 billion.
