Budget 2026: Here are key challenges in electronics & semiconductor sector

Electronics & SemicIndia's electronics and semiconductor ambitions face hurdles such as high capital costs, talent gaps and weak value-chain presence

Electronics & Semiconductor Manufacturing

  Key challenges 

• With just 1 per cent in the global value chains of electronics, India needs to scale exports and attract global electronics majors to set up large manufacturing bases 
•  High cost of capital in India (8-10 per cent), compared to China, Japan, and South Korea (1-6 per cent), discourages investors from setting up facilities in the country 
• The presence of limited dedicated training fabs, cleanroom simulation facilities, and industry-academia partnerships results in a talent gap and slower technology transfer  

 

Industry ask 

• Continued policy push towards electronic components and semiconductor manufacturing to ensure supply chains

• Capital support for MSMEs. Continued access to advanced technology and skilled talent to ensure developmen

• To sustain chip production in India. Incentive support, infrastructure readiness, and promotion of long-term strategic partnerships will be essential to attract players