India is positioning itself to become the new global king of the semiconductor industry. NITI Aayog has presented a massive vision to transform the nation into a chip-making powerhouse by 2035. The goal is to eliminate reliance on foreign chips and establish a 150 billion dollar value chain. This requires a total investment of up to 180 billion dollars over the next decade, with a recommendation for the government to fund one-third of the costs. From the smartphones in our hands to the smart cars on our roads, everything today depends on a tiny chip known as a semiconductor. A new report by NITI Aayog has drawn a complete blueprint of how India can become the world's new semiconductor king by the year 2035. According to the report, India shouldn't just remain a market for chips but should become a leader in this entire global industry with a strong value chain of 150 billion dollars.
The 2035 Masterplan and 150 Billion Dollar Vision
The report titled The Future of India's Semiconductor Industry released by NITI Aayog directly tells the story of India's dominance in the global market. The essence of this report is that India doesn't have to follow the world's crowd or merely imitate others. Instead, India will have to create such a strong position based on its strategic strength that the global supply chain can't function without it. The target has been set to build a massive semiconductor value chain of 120 to 150 billion dollars within the country by 2035. This is the blueprint for establishing India's supremacy in the global market, while to achieve this, a massive investment of about 135 to 180 billion dollars will be required over the next decade. The report recommends that the government itself should bear one-third of the total expenditure to catalyze this growth.
Ending Foreign Dependence and Saving National Wealth
The bitter reality today is that 90 to 95 percent of our domestic semiconductor requirement is imported from abroad. The report estimates that by 2035, the demand for chips in India alone will cross 200 billion dollars. It's a matter of great concern that if we continue to buy such a large portion from outside, a lot of the country's hard-earned money will go out in the form of foreign exchange. Also, if there is ever a problem in the global supply chain, many of our critical industries could come to a complete standstill. So, reducing this import is the biggest need of the hour. By building a domestic ecosystem, India can safeguard its economy from global shocks and ensure that the value created remains within its borders.
New Investment Formula and Government Support
Huge capital is needed to prepare the infrastructure for chip designing, manufacturing, and advanced packaging in the country. According to an estimate, a total investment of 135 to 180 billion dollars will be required for this over the next ten years. NITI Aayog has given a very important suggestion to the government. To win the trust of private companies, the Government of India itself should provide at least one-third of this total investment from its own pocket. When the government itself invests money in the basic infrastructure of chip-making factories, the risk of projects will decrease. This will enable large private companies to make secure, long-term investments in India. This public-private partnership is seen as the cornerstone of the entire semiconductor strategy.
Why are Chips Essential for Technology Sovereignty?
NITI Aayog Vice Chairman Ashok Kumar Lahiri has clarified that to become a developed nation, dependence on others' technology must be ended. This is called Technology Sovereignty. In today's time, Artificial Intelligence (AI), defense equipment, the telecom sector, transport, and even common citizen services run with the help of this small chip. 5 percent. 5 percent. India aims to capture a significant portion of this growth. By securing its own supply of semiconductors, India ensures that its progress in AI and defense isn't held hostage by global geopolitical shifts. The vision is clear: India must lead, not just follow, in the digital age.