Govt backing key to India’s $350B semiconductor ambition

India’s chip industry is gearing up for major growth, with the market expected to jump from $54 billion in 2026 to $350 billion by 2035.

This big leap depends on strong government support (think incentives and subsidies) to boost local production and cut down on imports.

India’s semiconductor subsidies total $80B
Right now, India still relies heavily on imports for making chips, but that’s set to change.

With three government subsidy packages (ISM 1.0, 2.0, 3.0) worth $40 billion and two additional packages (ISM 4.0, 5.0) at $20 billion each, for a combined total of $80 billion, the aim is to slash import dependency and ramp up homegrown manufacturing.

By 2035, India hopes its own factories will help breach more than 20% of its semiconductor import bill, thanks to a mix of local use and exports. News Bytes App