India’s Semiconductor Imports Reach ₹1.71 Lakh Crore in FY23
India’s semiconductor imports surged to ₹1.71 lakh crore in the fiscal year 2022–23, underscoring the nation’s growing demand for electronic components across various industries. This significant import figure highlights the critical role semiconductors play in India’s technology and manufacturing sectors.
Rising Demand for Semiconductors
The substantial increase in semiconductor imports reflects India’s expanding electronics manufacturing industry, which encompasses consumer electronics, automotive technology, and telecommunications. The reliance on imported semiconductors has become a focal point for policymakers aiming to strengthen the country’s technological infrastructure.
Government Initiatives to Boost Domestic Production
In response to the heavy dependence on imports, the Indian government has launched several initiatives to promote domestic semiconductor manufacturing. The India Semiconductor Mission (ISM) is a key program designed to build a robust semiconductor and display ecosystem, positioning India as a global hub for electronics manufacturing and design.
Additionally, the Production Linked Incentive (PLI) scheme offers financial incentives to companies investing in semiconductor fabrication and related research and development. These efforts aim to attract both global and local players to establish manufacturing units in India, reducing reliance on foreign imports.
Strategic Importance of Developing Domestic Capabilities
Developing domestic semiconductor manufacturing capabilities is crucial for India’s economic growth and technological self-reliance. By fostering a local semiconductor industry, India aims to mitigate supply chain disruptions and enhance its position in the global technology landscape.
The government’s proactive measures are expected to create a conducive environment for semiconductor manufacturing, encouraging investments and innovation in the sector. As these initiatives progress, India aspires to transition from a major importer to a significant producer of semiconductors, aligning with its broader vision of self-reliance and technological advancement.
