New Delhi, July 13 -- The central government's endeavours to develop the Indian semiconductor industry will help reduce the country's reliance on imported chips by an estimated USD 10 billion to USD 20 billion, said a report by a major consultancy firm, McKinsey.

According to the firm, India must combine targeted government incentives with strategic collaborations involving global technology giants to accelerate the growth of its semiconductor industry.

The consultancy highlights that such a dual approach is essential for India to establish itself as a key player in the global semiconductor value chain.

"To realise this potential value and reduce import dependency, India will require a mix of targeted government incentives and partners...