Bullish Signal: India's Semiconductor Market to Hit $300B by 2035; IT & EMS Stocks to Gain
Analyzing: “India’s semiconductor push to drive $300 billion market by 2035: Report” by et_companies · 18 Mar 2026, 10:02 AM IST (about 2 months ago)
What happened
A report projects India's semiconductor market to reach $300 billion by 2035, with domestic production fulfilling over 60% of demand. This massive growth is primarily driven by advancements in AI, the automotive industry, and data centers, signaling a significant shift towards self-reliance in a critical technology sector.
Why it matters
This development is crucial for India's economic growth and technological sovereignty. It reduces reliance on imports, strengthens the 'Make in India' initiative, and positions the country as a global player in semiconductor manufacturing and design. For traders, it highlights a long-term structural growth story with substantial investment potential.
Impact on Indian markets
The positive impact will be felt across several sectors. Indian IT services companies like TCS, Infosys, HCLTech, and Wipro will benefit from increased demand for design, R&D, and embedded software services. Electronics Manufacturing Services (EMS) providers such as Dixon Technologies and Amber Enterprises are set to gain from higher local component production. Companies focused on automotive technology like KPIT Technologies will also see tailwinds.
What traders should watch next
Traders should monitor government policy announcements regarding semiconductor incentives, progress on new fabrication plant setups, and quarterly results of IT and EMS companies for signs of increased order books or revenue from semiconductor-related projects. Key indicators will be capital expenditure plans by these companies and any new partnerships with global chipmakers.
Key Evidence
- •India's semiconductor market projected to hit USD 300 billion by 2035.
- •Local production to meet over 60% of domestic demand.
- •Expansion fueled by AI, automotive, and data center growth.
- •Sector expected to attract significant investment and create millions of jobs.
Affected Stocks
Potential for increased domestic semiconductor design and manufacturing, benefiting IT services and hardware companies.
Increased demand for semiconductor-related services and R&D, benefiting IT services and hardware companies.
Growth in the semiconductor ecosystem will drive demand for IT services, design, and embedded software.
Expansion of the semiconductor industry will create opportunities for IT consulting and engineering services.
Specialized engineering and R&D services for semiconductor and embedded systems will see increased demand.
Focus on automotive and embedded software, directly benefiting from semiconductor growth in the automotive sector.
Increased local manufacturing of electronic components and devices will boost demand for EMS providers.
As a major EMS player, will benefit from increased domestic electronics manufacturing driven by semiconductor availability.
Sources and updates
AI-powered analysis by
Anadi Algo News