Technology policy in India is no longer about single announcements. It now moves in clusters, with manufacturing, spending, talent, and capital all shifting at once. The week between March 23 and March 29, 2026, offered a clear snapshot of that pattern. Semiconductor plants moved closer to production, spending forecasts held firm, the IT industry edged toward a new revenue mark, and space startups drew fresh funding. None of these developments stood alone. Each pointed to a system that is widening in scope and becoming harder to separate into neat categories.
Semiconductor Push Moves From Plans to Production
India’s semiconductor effort has often been described in terms of ambition. This week, it moved a step closer to execution. Union Minister Ashwini Vaishnaw said that four semiconductor facilities under the India Semiconductor Mission are expected to become operational by the end of 2026.
The announcement builds on progress already seen at Micron Technology’s plant in Sanand, which began commercial production earlier. The upcoming facilities are expected to focus on assembly, testing, marking, and packaging, rather than advanced chip fabrication. That distinction matters. These are not the most advanced nodes, but they are part of a supply chain that India has long depended on imports for.
Officials have framed this phase as a starting point. The plan is to move toward more advanced manufacturing over time, supported by a second phase of the mission. For now, the focus is on building capability where entry barriers are lower and demand is steady.
This effort is tied to wider changes in electronics manufacturing. Demand from electric vehicles, consumer devices, and data centres has grown steadily, increasing the need for reliable chip supply. India’s attempt to build domestic capacity is as much about reducing dependence as it is about capturing part of that demand.
Tech Spending Growth Holds Steady
While manufacturing moves forward, spending on technology continues to rise. Research firm Forrester said India’s tech spending is expected to grow by 13.4 percent in 2026, slightly lower than the previous year but still ahead of most markets in the Asia-Pacific region.
The drivers are familiar but persistent. Companies are investing in cloud systems, cybersecurity, and data storage as they adjust to regulatory requirements and customer demand. Data localisation rules are playing a role, pushing firms to store and process information within India rather than relying on overseas servers.
This has created a steady demand for onshore services. Enterprises that once depended heavily on foreign providers are now looking for local options, both to meet compliance rules and to manage costs. That shift feeds into the growth of domestic providers and supports continued investment in data centres and related services.
The report also points to a broader change. India is no longer seen only as a supplier of IT services. It is also a large consumer of technology. That dual role shapes how companies invest and how policymakers think about the sector.
IT Industry Edges Toward $315 Billion Mark
At the same time, the industry itself continues to expand. NASSCOM projected that India’s technology sector will reach about $315 billion in revenue in the 2025–26 fiscal year, crossing the $300 billion mark for the first time.
Growth remains steady rather than sharp, at just over 6 percent. That reflects a recovery in demand for IT services after a period of slower spending in major markets. Engineering research and development, along with business process management, are also contributing to the total.
Employment figures show a similar pattern. The sector is expected to add around 135,000 jobs, bringing the total workforce close to six million. These numbers suggest that while automation is changing how work is done, it has not reduced the need for workers. Instead, it is shifting demand toward new roles.
Revenue linked to artificial intelligence remains a small part of the total, estimated at around $10–12 billion. Even so, it is beginning to influence how services are structured. Companies are incorporating AI tools into their offerings, changing both pricing and delivery models.
The industry’s position reflects a mix of stability and change. Traditional services continue to generate most of the income, while newer areas begin to reshape how that income is earned.
Space Startup Funding Signals Growing Interest
Away from the larger firms, activity in the space sector is gathering pace. Bengaluru-based Bellatrix Aerospace secured fresh funding to expand its satellite propulsion work and reach new markets.
The company focuses on electric propulsion systems, which improve satellite efficiency and extend mission life. These systems are becoming more relevant as the number of small satellites increases, driven by demand for communication and earth observation services.
The funding comes at a time when India’s space sector is opening up to private companies. Policy changes have allowed startups to work alongside ISRO, rather than operating at the margins. This has led to a rise in companies working on launch services, satellite design, and ground systems.
Investor interest reflects that shift. Space technology is no longer treated as a niche field limited to government agencies. It is becoming part of a wider commercial market, where cost and reliability determine success.
For companies like Bellatrix, the challenge lies in moving from development to deployment. Building propulsion systems is one step. Securing contracts and launching missions is another.
Semiconductor Market Outlook Points to Long-Term Demand
The week also brought a broader view of where semiconductor demand is headed. A report by Deloitte estimated that India’s semiconductor market could reach $120 billion by 2030 and grow further in the following years.
The drivers of this demand are spread across sectors. Mobile devices remain a large part of consumption, but growth is also coming from vehicles, data centres, and computing equipment. Electric vehicles, in particular, require a wide range of chips, increasing demand for both basic and specialised components.
The report links this demand to the ongoing push for domestic manufacturing. As new plants come online, they are expected to supply a larger share of the local market. This does not eliminate imports, but it changes the balance.
Challenges remain. Skilled labour, supply chains, and access to equipment all affect how quickly production can scale. Government incentives and private investment are addressing some of these issues, but progress depends on how these elements come together.
The outlook suggests that semiconductors will remain central to India’s technology plans, not only as a manufacturing goal but also as a requirement for other sectors.
