IESA Releases Report on Semiconductor and ESDM Policies in India

The India Electronics and Semiconductor Association (IESA), an industry association in the Semiconductor and ESDM sector, has unveiled the 2024 Edition of the Compendium of Semiconductor & ESDM Policies in India. This report serves as a thorough and current reference for the policies and incentives provided by the Government of India and 14 states for the Semiconductor and ESDM industry. The launch took place during the IESA Vision Summit 2024, officiated by Shri. S. Krishnan, Secretary MEITY.

The Government of India plays a pivotal role as a facilitator, offering both financial and non-financial support to enhance the ease of doing business. This strategic approach aims to stimulate interest and investments from the private sector, particularly in large-scale design and manufacturing. Notably, eight states in India, namely Andhra Pradesh, Gujarat, Karnataka, Maharashtra, Odisha, Tamil Nadu, Telangana, and Uttar Pradesh, have explicitly expressed their commitment to nurturing the Semiconductor Industry.

Among them, Gujarat, Odisha, Tamil Nadu, and Uttar Pradesh have already formulated dedicated Semiconductor Policies. The recently released report by the India Electronics and Semiconductor Association (IESA) meticulously examines and compares the policies and incentives provided by these states. The insights derived from this analysis offer valuable recommendations for stakeholders involved in fostering the growth of the semiconductor sector in India.

Crafted in collaboration with Feedback Advisory, this report serves as a comprehensive reference guide for decision-makers, encompassing government officials, investors, business leaders, entrepreneurs, and prospective policymakers. The primary objective is to offer an easily accessible resource for those entrusted with making crucial decisions. The report presents a factual overview of the policies governing Semiconductors and Electronic System Design and Manufacturing (ESDM) in India.

It delves into critical areas such as Manufacturing & Fabless Policy, Company Eligibility, Fiscal Subsidies, Non-Fiscal Subsidies, and the Policy Framework for Fabless Firms. By providing a succinct summary of both the Government of India and State Policies, this document aims to equip stakeholders with essential insights necessary for informed decision-making in the realm of Semiconductors and ESDM.

Veerappan V, Vice Chairperson, IESA, commented, “The semiconductor and ESDM sector is a key enabler of the digital transformation that is reshaping the world. India, with its large and growing market, talent base, and policy framework, has the potential to emerge as a global hub for this sector. With the Indian semiconductor market poised to reach a valuation of $80.3 Bn by 2028, we are excited to present the 2024 Edition of Compendium of Semiconductor & ESDM Policies, a comprehensive and updated report that provides a detailed overview of the various policies and incentives offered by the Government of India and the states to encourage and enhance this sector. We sincerely hope that this report will help in spreading awareness, enabling decision-making, and attracting more investments and innovations in this sector.”

Ashok Chandak, President, of IESA, stated, “The Semiconductor and ESDM sector is vital for India's economic and social progress, as it enables innovation and value creation across various domains such as healthcare, education, agriculture, defense, and more. India has a huge opportunity to leverage its strengths in design, talent, and market to become a global leader in this sector. At IESA, we are committed to facilitating collaboration and partnership among the government, the industry, the academia, and the research institutions to create a vibrant and thriving ecosystem for the Semiconductor and ESDM sector in India. This report is another step in this direction.”

Essential reading for gaining a comprehensive understanding of the present landscape, opportunities, and challenges in the Semiconductor and Electronic System Design and Manufacturing (ESDM) sectors in India, the 2024 edition of the Compendium of Semiconductor & ESDM Policies is a valuable resource.

Offering insights and recommendations, the report serves as a guide for industry professionals and policymakers alike, outlining steps required to position India as a global hub for these industries. As the industry's representative voice, the India Electronics and Semiconductor Association (IESA) remains committed to collaborating with the government and stakeholders. Together, they aim to foster a conducive ecosystem that supports and enhances the growth of the Semiconductor and ESDM sectors within India.