Ashwini Vaishnaw Says Second Semiconductor Plant Begins Production, Predicts 10% Rise in Consumption

By A Staff Reporter

Delhi | Union Minister Ashwini Vaishnaw on Saturday announced that India’s second semiconductor plant has begun production, marking another step forward in the country’s technological and industrial growth. He also projected a sharp rise in domestic consumption, attributing it to the positive impact of ongoing GST reforms.

“The second semiconductor plant started production last week,” Vaishnaw said, highlighting the government’s continued focus on strengthening India’s manufacturing and digital ecosystem.

Discussing the economic outlook, he noted that the Goods and Services Tax (GST) reforms have played a major role in stimulating demand and investment. “During the GST reform, many estimates were made about how consumption would increase, how demand would grow in the country,” he said.

Citing official figures, the minister explained, “If we look at our GDP numbers from last year, it was ₹335 lakh crore. Of that, consumption accounted for ₹202 lakh crore, and investment accounted for ₹98 lakh crore. But because of the GST reforms, consumption will be significantly increasing, and it’s very likely that consumption will increase more than 10 per cent this year, which means there is a strong possibility of extra consumption of around ₹20 lakh crore.”