Assessing India’s Readiness to Assume a Greater Role in Global Semiconductor Value Chains. dholera smart city.In July 2022, the western Indian state of Gujarat became the first Indian state to launch a policy specifically for the semiconductor sector: the Gujarat Semiconductor Policy (2022–2027). Gujarat seeks to develop a “Semicon City” in the Dholera Special Investment Region (SIR) , which it intends to become a dedicated manufacturing hub of semiconductor and display fabs.

Gujarat’s semiconductor policy seeks to facilitate eligible semiconductor and display fab projects with land allotments; expedited process approvals; ready access to power, water, and gas utilities; and generous fiscal incentives.For the dholera smart city, eligible projects will receive a 75 percent subsidy on the procurement of the first 200 acres of land, while additional land for upstream or downstream projects will receive a 50 percent subsidy on land cost. Other incentives include a one-time reimbursement of 100 percent stamp-duty and registration fees paid to the government, a fixed water tariff at 12 rupees per cubic meter for five years, and a capital subsidy of 50 percent for desalination plant. The policy also offers a power tariff subsidy of 2 rupees per unit for 10 years.Gujarat has further committed to implement a single-window clearance mechanism to expedite clearances and avoid bottlenecks