India’s Ministry of Electronics and IT (MeitY), Ministry of Power, and Powergrid have initiated a consultation to encourage the development of homegrown power semiconductors and modules, aiming to reduce reliance on imports for critical electricity grid components.
- Consultation invites industry input until October 8 with meeting on October 14
- Goal to indigenize supply chain for VSC-HVDC power modules
- McKinsey warns of $130 billion import shortfall without indigenization
What happened
The Indian government, through MeitY, the Ministry of Power, and Powergrid, has initiated a consultation process aimed at developing indigenous power semiconductors and modules. This process involves inviting stakeholders to provide feedback on the design, development, and supply of silicon carbide (SiC) MOSFET-based power modules specifically for Voltage-Sourced Converter High-Voltage Direct Current (VSC-HVDC) technology. The consultation phase ends with a stakeholder meeting scheduled for October 14, following a deadline for submissions on October 8.
The initiative targets the comprehensive domestic value chain encompassing device design, module engineering, fabrication, packaging, assembly, testing, qualification, and system integration. This is intended to build self-reliance in a critical technology area that underpins advanced power transmission systems integral to India’s electricity grid infrastructure.
Why it matters
India’s electricity grids are categorized as critical infrastructure but currently depend heavily on imported power semiconductor equipment. This import reliance poses strategic vulnerabilities and economic risks. As per a McKinsey report, unless India accelerates efforts to develop local production capabilities, the country could face a production gap exceeding $130 billion in power equipment. This shortfall may push import dependence beyond 70%, making it India’s largest import category alongside oil and gas.
Between 2020 and 2025, India’s electrical equipment consumption increased rapidly, growing by $24 billion to $59 billion. Domestic production for this market only reached $32 billion in 2025, further highlighting the widening gap met through imports. This indigenization push aligns with India’s broader self-reliance goals, aiming to safeguard grid security and stimulate domestic technology manufacturing.
What to watch next
Key developments to monitor include the outcomes of the October 14 stakeholder consultation and the finalized request for proposal (RFP) that will shape future government support and procurement policies. The response from technology manufacturers and industry players will be critical in determining how quickly a domestic power semiconductor ecosystem can be established.
Additionally, tracking the progress of developing fully integrated systems across the supply chain—from chip design to module assembly and testing—will indicate how India’s strategic capabilities evolve. This will also influence future import dependency trends and India’s positioning in the global power semiconductor and advanced transmission technology markets.