India's smartphone market is experiencing rapid growth, with the potential to soon surpass China. Driven by surging demand for smartphones and an explosion in manufacturing facilities, India has established itself as the second largest smartphone market globally. The government is making significant strides to support this growth, rapidly working on the establishment of chip manufacturing units within the country. Currently, the chip market is dominated by the United States and China.
This surge in the smartphone market is set to gain further momentum. The Ministry of Electronics and Information Technology (MeitY), in collaboration with the Department of Telecommunications (DoT), has developed a plan to provide a substantial boost to India’s smartphone sector. Under the Atmanirbhar Bharat Yojana, the government aims to enhance local chip production, which is expected to significantly benefit the smartphone industry.
In a recent discussion at an ET program, MeitY Secretary S. Krishnan emphasised the crucial role of chipsets when considering mobile operating systems in India. He highlighted that initiatives like Atmanirbhar Bharat, the India Semiconductor Mission, and the Design-Linked Incentive Scheme will play an essential part in this development. The recent budget also reflects a commitment to focus on semiconductors.
This year, the government has allocated a remarkable budget increase of 83 percent for the Semiconductor Mission, now totaling Rs 7,000 crore. Additionally, the budget for the Production Linked Initiative Scheme has been raised by 55 percent, amounting to Rs 9,000 crore. In contrast, China’s semiconductor budget stands at approximately 47 billion dollars, equivalent to around Rs 4 lakh crore. The advancement of semiconductors is also poised to drive the development of AI in India, with these components set to enhance AI applications, which will play a significant role in various sectors in the future.
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