As per government of India Task Force report (DeitY) gross size of the electronics industry is evaluated at about US$ 1.9 trillion and is anticipated to reach US$ 2.4 trillion by 2020.
The key drivers for the semiconductor market in India include rising demand for consumer electronics, growing automotive semiconductor market telecom infrastructure equipment’s, wireless handsets, notebooks and other IT and office automation products, set-top boxes and smart cards, Booming internet of things (IoT) market and Heavy investments in New Product Development, R Growth sectors, including health care equipment, automotive, consumer goods and industrial goods – all of which progressively use electronics – are as well expected to encourage semiconductor consumption in India.
India is heavily dependent for semiconductor chip imports on Asian countries such as China, Taiwan, South Korea and Japan, although electronic manufacturing service companies in India have reached considerable maturity for final assembly, testing, packaging and distribution services.
Chinese and Taiwanese companies compared to western players, are making the major inroads in Indian domestic semiconductor market.
The ministry of electronics and information technology (MeitY) is revising its policy framework towards making India a global semiconductor hub, which will see the government taking a more active role, including initial investment, in a bid to attract private sector players.
The existing policy has not worked as it offered little commercial viability for the private sector.