Union Minister for Electronics and Information Technology Ashwini Vaishnaw highlighted that the upcoming years will witness growth in electronics, semiconductors, and Artificial Intelligence (AI), urging Gujarat to position itself as a hub for data centers to seize global data-hosting prospects.

In his inauguration of the Gujarat SemiConnect Conference 2026 in Gandhinagar, Vaishnaw stated, “This combination of AI, semiconductor, and electronics manufacturing, which was merely a 2 trillion rupee industry ten years prior, has now transformed into a 12 trillion rupee industry, employing 2.5 million individuals, and is expanding at a CAGR (Compound Annual Growth Rate) exceeding 20 percent.”

“It’s a substantial increase in electronics production, involving components, materials, capital equipment, final products, and finished goods. Almost the whole ecosystem is arriving in India, and this will drive the next growth phase in the next three to four years. Therefore, participate in that. Join this trio of AI, semiconductor, and electronics production. The upcoming years will see significant growth in electronics, semiconductors, and AI,” states Ashwini.

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The Union government is preparing to introduce 'Semicon 2.0', which aims to transform India into a global center for manufacturing, as well as design, machinery, and talent, according to the Union Minister.

According to Vaishnaw, Semicon 2.0 will be entirely opposite of Semicon 1, which emphasized establishing manufacturing facilities in India. Under Semicon 1, India is developing 10 semiconductor manufacturing facilities. The initial plant began commercial production in Sanand on Saturday, and Ashwini mentions that the second plant will commence commercial production shortly.

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The Union Minister stated that by assuring tax benefits until 2047, the government has ensured policy stability.

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“Have you heard of any other country which has given policy certainty? Policy certainty is something which is so very important. Till 2047 we have tax incentives for data centers, and that means the entire world’s data can now come to India. Our strong IT industry, which provided software services in the past, can now provide AI- based services. The foundation for bringing the entire data of the world to India has been laid by our prime minister in the budget, where incentives up to 2047 have been given for setting up data centers,” Ashwini says.