India’s ambitious push to develop its semiconductor sector aims to move deeper into global value chains, reduce reliance on imports, and position the country as a trusted exporter in high-tech industries, with major projects and policy shifts signalling a new phase of technological and industrial growth.
India’s push to expand domestic manufacturing, with semiconductors at the centre, is being cast by industry leaders as a chance to move the country deeper into global value chains and reduce reliance on overseas suppliers. In comments following Narendra Modi’s Independence Day address, executives said the emphasis on factories, advanced technology and smaller businesses could help India build a more resilient industrial base and support the next phase of growth.
Pankaj Mohindroo, chairman of the India Cellular and Electronics Association, said the prime minister’s call for five to eight new semiconductor plants over the next seven to eight years marked a major change in ambition. He described it as a shift away from simple assembly work towards a position closer to the core of global technology manufacturing. The broader goal, according to the industry response, is to make India a trusted supplier in sectors where quality, cost and scale matter most.
That ambition is already reflected in a series of projects under way. In May 2026, Tata Electronics and ASML agreed to establish India’s first front-end chip fabrication plant, a deal seen as a milestone in the country’s effort to build a real manufacturing base in a sector long dominated by a small group of global powers. Tata Electronics has separately said it wants India to become a manufacturing hub across electronics services, chip packaging, testing, wafer foundries and design, with a large factory already operating and thousands employed.
The wider ecosystem is also taking shape around design, assembly, testing and packaging. Business Standard reported that government-backed projects under the India Semiconductor Mission now span wafer fabrication, packaging, testing and chip design, while analysts say the challenge will be to meet international standards and secure the skilled workers, suppliers and customers needed for scale. The Institute for Technology and Innovation Foundation has also said India already accounts for roughly a fifth of the world’s semiconductor design engineers, underlining that the country’s strength is not starting from zero.
Industry bodies also used the moment to press for wider market access. According to the Confederation of Indian Industry, free trade agreements could help agriculture and food-processing firms build export brands around millets, spices, fruit and flowers, while the Associated Chambers of Commerce and Industry of India said smaller firms stand to benefit if India can connect more deeply to global trade. The message from business was clear: if India can pair domestic capability with access to overseas markets, its manufacturing push could become a much bigger economic story than chips alone.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
