Restricted access | Chapter | First published July 17, 2026 | Part of Confluence of Perspectives: Essays in Leadership, Management and Society Vol.1

8. Semiconductor Manufacturing in India: Assessing Its Impact on Gross Domestic Product and Pathways to Industrial Transformation

Sweta Priyadarshini, Project Manager, Ordinance Factory, Chandigarh | Dr K.R. Gola, Associate Professor Sharda University

Confluence of Perspectives: Essays in Leadership, Management and Society Vol.1  |  https://doi.org/10.67103/IRG.COP1.2026.9788168516410.8

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Abstract

India’s emergence as a possible semiconductor manufacturing hub may be one of
the most strategically important industrial shifts the country has experienced since
the liberalization of the economy. This review paper evaluates the relationship
between the semiconductor manufacturing and GDP of India using government data,
industry reports and peer- reviewed scholarship to create an analytical framework.
The Indian semiconductor market is valued at around USD 38 billion in 2023 and it is
anticipated to reach USD 100–110 billion by 2030. It is backed by the ₹76,000 crore
India Semiconductor Mission (ISM), which was launched in December 2021. This
paper draws on endogenous growth theory, learning-by-doing spillovers and global
value chain (GVC) integration and brings together evidence on GDP direct
contribution, employment multiplier, FDI inflow, export diversification and
technological externalities. As per the key findings, the electronics industry of
which semiconductors are a major component, already contributes around 3.4% of
national GDP (gross domestic product), and the total approved investments under
ISM have crossed ₹1.62 lakh crore (nearly USD 19.3 billion) so far. This paper has
important implications for macroeconomic policy, industrial policy and human
capital development; it further notes that there are significant structural constraints
which include infrastructure bottlenecks, and talent shortages of 2,50,000–3,50,000
by 2027 and geo-political stresses on supply chains. The research indicates that
sustained semiconductor industrialization can contribute an additional 1.5–2.0
percentage points to the share of the manufacturing GDP of India by 2030, subject to
sustained continuation of policies, deep value-chain integration and ecosystemlevel
investment in research and development.
Keywords

semiconductor manufacturing India Semiconductor Mission GDP growth Production Linked Incentive global value chains industrial policy electronics manufacturing.

Chapter information

Chapter title Semiconductor Manufacturing in India: Assessing Its Impact on Gross Domestic Product and Pathways to Industrial Transformation
Author(s) Sweta Priyadarshini, Project Manager, Ordinance Factory, Chandigarh | Dr K.R. Gola, Associate Professor Sharda University
Book title Confluence of Perspectives: Essays in Leadership, Management and Society Vol.1
Editor(s) Abhinanda Bhattacharya | Dr. Ruchi Jain Garg
Book Doi https://doi.org/10.67103/IRG.COP1.2026.9788168516410
DOI https://doi.org/10.67103/IRG.COP1.2026.9788168516410.8
Publication date July 17, 2026
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How to cite

Sweta Priyadarshini, Project Manager, Ordinance Factory, Chandigarh | Dr K.R. Gola, Associate Professor Sharda University. 2026. Semiconductor Manufacturing in India: Assessing Its Impact on Gross Domestic Product and Pathways to Industrial Transformation. In: Abhinanda Bhattacharya | Dr. Ruchi Jain Garg (eds). Confluence of Perspectives: Essays in Leadership, Management and Society Vol.1. Book Doi https://doi.org/10.67103/IRG.COP1.2026.9788168516410. https://doi.org/10.67103/IRG.COP1.2026.9788168516410.8

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