India poised as semiconductor manufacturing hub, says top official

India is emerging as a critical destination for semiconductor manufacturing, driven by rising domestic electronics consumption and improving industrial capabilities, a senior government official said. S Krishnan, Secretary of the Ministry of Electronics and Information Technology (MeitY), highlighted India's growing importance in reshaping global supply chains as multinational companies seek to reduce concentration risk in semiconductor production.

The official pointed to India's expanding consumer electronics market as a fundamental factor supporting semiconductor manufacturing growth. With hundreds of millions of new consumers entering the digital economy, domestic demand for chips and related electronics continues to accelerate, creating a substantial domestic market base for manufacturers.

Krishnan also underscored India's improving manufacturing infrastructure and capabilities as key enablers for the sector's expansion. The government has implemented various policy initiatives and incentive schemes to attract semiconductor manufacturers and build a competitive domestic industry.

India's position in efforts to diversify global semiconductor supply chains further bolsters its strategic importance. As geopolitical tensions and supply chain disruptions highlight the risks of concentrated production, companies are exploring multiple manufacturing locations, with India increasingly viewed as a reliable alternative to established Asian semiconductor hubs.