(MENAFN- KNN India)
New Delhi, Jan 29 (KNN) India's Semiconductor industry is poised for substantial expansion, with market value expected to nearly double from USD 52 billion in 2024 to USD 103.4 billion by 2030, according to a comprehensive analysis released by the India Electronics and Semiconductor Association (IESA).
The growth trajectory, detailed in a report reviewed by The financial Express, is primarily driven by the mobile handset, information technology, and telecommunications sectors, alongside contributions from consumer electronics, automotive, aerospace, and defence industries.
IESA Chairman V Veerappan highlighted the market's robust compound annual growth rate of 13 percent through 2030, with particular emphasis on emerging opportunities in automotive and industrial electronics segments.
The analysis reveals that mobile handsets, IT, and industrial applications currently account for approximately 70 percent of the industry's revenue, a trend expected to continue as the market expands.
The report emphasises the critical role of research and development in driving innovation across key product categories, including smartphones, hearables, consumer durables, and routers.
IESA President Ashok Chandak noted significant industry momentum, citing over USD 21 billion in investments committed by IESA member companies in the past year.
This investment surge aligns with government initiatives providing targeted incentives for fabrication facilities and Outsourced Semiconductor Assembly and Test (OSAT) operations.
To sustain this growth trajectory, IESA recommends several strategic initiatives, including extending the semiconductor incentive scheme beyond its current USD 10 billion allocation and reforming the design-linked incentive program.
The association has established ambitious targets for local value addition in electronics manufacturing, aiming for 25 percent by 2025-26 and 40 percent by 2030.
Additionally, the report advocates for implementing a unified product development scheme and emphasises the paramount importance of workforce development in supporting the industry's expansion.
(KNN Bureau)
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