New Delhi, March 17 -- India is developing itself as a semiconductor hub due to favourable government policies, growing demand, low-cost production capabilities, and strategic linkages with Western nations, according to a recent report by Jefferies.

The report highlights fiscal incentives from the government, low manufacturing costs, a talented design workforce, and rising demand as advantageous factors helping the sector.

"We believe India has strong potential to replicate its manufacturing success in autos to semis, led by policy support, rising demand, low cost and strategic goodwill with the West," said the report.

It added that the country's aspirations to become a major player in semiconductor manufacturing are gaining significan...