On August 15, 2025, Prime Minister Narendra Modi stood atop the historic Red Fort in New Delhi and delivered a message that reverberated far beyond India’s borders: the nation’s first domestically produced semiconductor chip would hit the market by year’s end. For a country that has long aspired to be a global technology powerhouse, this announcement marked a watershed moment—one that signals India’s intent to become a serious player in the world’s electronics and clean energy industries.
“By the end of this year, made in India, made by the people of India, made in India chips will come to the market,” Modi declared, according to Times of India. The Prime Minister’s words underscored not just a technical achievement, but a broader ambition: to transform India into a global hub for semiconductor manufacturing and to carve out a leadership role in the clean energy transition.
India’s journey to this point has been anything but straightforward. As Modi himself acknowledged, the concept of domestic semiconductor manufacturing dates back 50 or 60 years, but bureaucratic inertia and missed opportunities stymied progress for decades. “The thought process of the semiconductor itself was foeticide 50-60 years ago. It lost 50-60 years… Other countries moved forward while we were stuck,” he said, clarifying that his intent was not to blame past governments but to highlight the dangers of letting visionary projects languish.
Now, the country is moving forward in what Modi described as “mission mode.” Six semiconductor plants are already operational, and four more have just received government approval, bringing the total to 10. The combined investment in these plants is a staggering ₹1.6 lakh crore, with the four newest facilities alone accounting for over ₹4,500 crore. These include the 3D Glass Solutions Inc. unit in Odisha, the SiCsem Compound Fab Unit in Bhubaneswar, Advanced System in Package Technologies in Andhra Pradesh, and the CDIL Semiconductor Project in Punjab. Collectively, they are expected to churn out tens of crores of chips annually, according to Business Standard.
Major ongoing projects are also reshaping the landscape. Tata Electronics has teamed up with Taiwan’s PSMC for a ₹91,000 crore venture, while Micron Technology, CG Power-Renesas-Stars, TSAT (Tata Semiconductor Assembly and Test), Kaynes Semicon, and the HCL-Foxconn joint venture are all investing heavily in wafer manufacturing and advanced chip packaging. The scale is unprecedented for India—and it’s only the beginning.
India’s semiconductor market is booming, with its value rising from USD 38 billion in 2023 to an estimated USD 45–50 billion in 2024–25. By 2030, industry analysts expect the market to more than double, reaching USD 100–110 billion. These numbers are more than just statistics; they reflect a tectonic shift in India’s industrial priorities and its determination to achieve self-reliance, or Atmanirbhar Bharat, as Modi calls it.
But the semiconductor story is just one part of a much larger narrative unfolding across India’s manufacturing sector. As the country races to meet its ambitious Net Zero target for 2070, the government has rolled out a supportive policy framework that’s winning praise from industry leaders and analysts alike. Still, as Mint reports, there is a significant gap between policy intent and actual execution—especially in hard-to-abate sectors such as steel, cement, refining, and heavy transport.
A 2024 PwC report, “Decoding the Fifth Industrial Revolution,” found that 93% of Indian manufacturers are prioritizing sustainability, and many expect a two- to threefold increase in profits over the next three to five years by embracing what’s known as Industry 5.0. This new paradigm emphasizes not only automation and digitalization, but also resilience, sustainability, and a human-centric approach. Yet, as the report cautions, “where most of the manufacturers fall short is in the execution part.”
One of the biggest hurdles is infrastructure. Green hydrogen and compressed biogas (CBG)—two cornerstones of India’s clean energy strategy—require new supply chains, distribution systems, and technical expertise. Hydrogen, for instance, needs a highly organized supply chain tailored to specific industrial needs, while CBG works best with a decentralized model involving local biomass collection and distribution. Upgrading legacy systems to accommodate these technologies is no small feat.
Manufacturers are being urged to leverage existing clean energy policies, such as the National Green Hydrogen Mission, rather than waiting for future enhancements. These policies offer financial incentives, assured offtake, and infrastructure support—tools that can help companies build long-term sustainability and competitiveness. Engaging with government agencies, according to Mint, can also amplify manufacturers’ voices and help shape future policy directions.
Another major challenge is the skill gap. Transitioning to green hydrogen and CBG demands new expertise in engineering, safety, procurement, and operations. Without targeted training and upskilling, companies risk falling behind in the race to adopt cleaner fuels and technologies. Partnerships with startups and research institutions are proving invaluable, enabling technology sharing and custom solutions tailored to specific sectors. Public-private initiatives, too, are scaling up impact by leveraging government programs and resources.
Digital technologies are emerging as powerful allies in this transition. AI-driven energy management systems and demand-centric distribution models can optimize the supply and use of clean energy, ensuring that the right resources are delivered in the right quantities and with the necessary safety protocols. By embracing these tools, Indian manufacturers can further boost operational reliability and efficiency.
Still, the road ahead is long and dynamic. “Measurable change will not come from government initiatives alone. Manufacturers must carry the vision forward with investments, innovation, and the integration of sustainable practices across their operations,” Mint notes. The sense of urgency is palpable: “The journey to transition to clean energy is long and dynamic, and we are already behind schedule. The time to act is NOW.”
India’s semiconductor breakthrough and its push for clean energy adoption are not isolated efforts—they are deeply intertwined. Both reflect a broader shift toward self-reliance, global competitiveness, and environmental stewardship. The government’s role in crafting a favorable policy environment has been critical, but the private sector’s willingness to invest, innovate, and adapt will ultimately determine the pace and scale of progress.
As India prepares to launch its first homegrown semiconductor chip and as manufacturers step up their clean energy commitments, the country is sending a clear message: it is ready to claim its place on the global technology and sustainability stage. The next few years will test the resilience, ingenuity, and determination of India’s industry leaders—but if recent developments are any indication, the nation is more than up for the challenge.
