Government's Semicon India Initiative to Create a Comprehensive Manufacturing Ecosystem
Synopsis
Key Takeaways
New Delhi, April 1 (NationPress) The government has implemented a systematic and focused strategy for the electronics manufacturing sector, encompassing the entire value chain, including semiconductors. According to an official announcement made on Wednesday, the production of electronic goods has increased sixfold over the last decade.
Over the past 11 years, India's electronics manufacturing industry has experienced remarkable growth.
Electronic goods production surged to approximately Rs 12 lakh crore in 2024-25, a significant rise from around Rs 1.9 lakh crore in 2014-15. Exports in this sector skyrocketed eightfold, reaching around Rs 3.3 lakh crore compared to just Rs 38,000 crore during the same timeframe.
Mobile phone production specifically saw a staggering increase, growing 28 times to Rs 5.45 lakh crore in 2024-25 from Rs 18,000 crore in 2014-15, as reported by the Ministry of Electronics & IT.
The Semicon India Programme, which commenced in January 2022, was established to foster the growth of a robust manufacturing ecosystem within India. This initiative aims to build a comprehensive ecosystem that includes design, fabrication, assembly, testing, packaging, and module manufacturing.
Within just four years, the government has sanctioned 10 projects with investment pledges totaling approximately Rs 1.6 lakh crore. Commercial production has begun at two plants (Micron and Kaynes), with an additional two set to start operations this year.
In conjunction with the successes of the Semicon India Programme, the Union Budget 2026-27 has proposed the India Semiconductor Mission 2.0, which focuses on the production of equipment and materials, complete design stacks, Indian intellectual property, and reinforcement of supply chains, as noted in the statement.
Under the India Semiconductor Mission (ISM), 10 semiconductor manufacturing units are currently being built. As a cornerstone industry, semiconductor production is anticipated to generate a substantial number of jobs across the supply chain and related sectors, leading to significant indirect employment opportunities.
Additionally, under the Electronics Component Manufacturing Scheme (ECMS), 249 applications have been submitted for components, base materials, and capital equipment such as PCBs, capacitors, and laminates, as reported by the ministry.
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