India Raises Semiconductor Demand Forecast by 50 Percent to USD 150 Billion by 2030 as Cabinet Approves India Semiconductor Mission 2.0 with Rs 1.27 Lakh Crore Outlay | Current Affairs

The Ministry of Electronics and Information Technology revised India's semiconductor demand forecast upward by 50 percent to USD 150 billion by 2030, up from the earlier estimate of USD 103.4 billion made in January 2025. A senior MeitY official explained that the sharp revision is driven by a big push in electronics and components through various incentive schemes expected to create a USD 500 billion ecosystem, alongside rising AI-led demand from large data centres coming up across the country. India's current semiconductor demand stands at approximately USD 64 billion annually, with over 90 percent of requirements being imported.

The Union Cabinet this week approved India Semiconductor Mission 2.0 with an outlay of Rs 1.27 lakh crore to strengthen semiconductor design, manufacturing, equipment, materials, research, and talent capabilities. ISM 2.0 builds on the original India Semiconductor Mission and aims to ensure that 20 to 30 percent of India's semiconductor requirement is met domestically by 2030 through one fabrication plant and 13 OSAT and ATMP facilities receiving incentives under the scheme. ISM 2.0 is administered by MeitY and aligns with India's goal of becoming a USD 500 billion electronics manufacturing hub.

Why in News: Semiconductor policy and ISM are high-priority exam topics for SSC CGL, UPSC, Banking, and Railway exams. Key facts include the revised demand forecast (USD 150 billion by 2030), the increase (50%), ISM 2.0 outlay (Rs 1.27 lakh crore), nodal ministry (MeitY), domestic supply target (20 to 30% by 2030), and the USD 500 billion electronics ecosystem goal.

Key Points to Remember:

India's semiconductor demand forecast revised to: USD 150 billion by 2030
Revision: 50% higher than January 2025 estimate of USD 103.4 billion
Revised by: MeitY (Ministry of Electronics and Information Technology)
India's current annual semiconductor demand: approximately USD 64 billion
India currently imports: over 90% of its semiconductor requirements
Drivers of revised forecast: Electronics PLI schemes, AI data centre growth, EV demand, telecom expansion
Cabinet approved: India Semiconductor Mission 2.0 (ISM 2.0)
ISM 2.0 outlay: Rs 1.27 lakh crore
ISM 2.0 covers: Semiconductor design, manufacturing, equipment, materials, research, and talent
Domestic supply target by 2030: 20 to 30% through 1 fab plant and 13 OSAT and ATMP facilities
India's overall electronics manufacturing target: USD 500 billion ecosystem
ISM 1.0 already attracted over USD 19 billion in investments across 10 approved projects

Related Static GK:

MeitY full form: Ministry of Electronics and Information Technology; Minister (2026): Ashwini Vaishnaw
ISM full form: India Semiconductor Mission; launched 2022 under MeitY; nodal agency for semiconductor ecosystem
Semiconductor: Fundamental building block of all modern electronics including chips, processors, and memory; made primarily from silicon
OSAT full form: Outsourced Semiconductor Assembly and Test
ATMP full form: Assembly, Testing, Marking and Packaging
Fab plant: Fabrication facility where semiconductor wafers are produced; India's first fab: Tata Electronics (Dholera, Gujarat) under ISM
PLI full form: Production Linked Incentive scheme; used across multiple sectors including semiconductors, electronics, mobile phones
Global semiconductor equipment spending 2026: Record USD 165.9 billion (23.2% growth, SEMI forecast)
India semiconductor market size FY2024-25: approximately USD 45 to 50 billion