India remains heavily dependent on imports for crude oil and runs a sizable merchandise trade deficit. Yet in one key sector, mobile phones, the country has achieved a remarkable turnaround. Today, 99.2% of the mobile phones sold in India are manufactured domestically, a milestone reached in a span of a few years.
India’s Semiconductor Market Growth and Import Dependence
India’s semiconductor market is expected to grow significantly, reaching approximately $200 billion by 2035. However, the country currently relies heavily on imports to meet this demand, with 90-95% of its semiconductor needs sourced from abroad. This reliance results in substantial foreign exchange outflows and heightens the risk of supply-chain disruptions in critical sectors. These insights are drawn from a May 2026 report by NITI Aayog.
The success story extends beyond mobile phones. India’s broader electronics trade has witnessed rapid growth as well. Highlighting the changing dynamics of the global semiconductor industry, the Prime Minister noted that the explosive growth of artificial intelligence is shifting the focus beyond transistor size to broader system-level integration, including memory architecture and heat management. He also positioned India as a reliable and trusted destination for companies looking to diversify and expand semiconductor manufacturing amid evolving global supply chains.
Over the past five years, electronics exports have nearly doubled, while imports have risen about 1.6 times. India imported electronic goods worth $179 billion and exported $90.6 billion in 2025-26, according to the Ministry of Commerce and Industry.
