BusinessWire India

Davos [Switzerland]/ Mumbai (Maharashtra) [India], January 22: India's emergence as a pivotal force in global trade, technology, and sustainability is underpinned by bold investments in semiconductor manufacturing and rapid adoption of artificial intelligence (AI), according to KPMG's latest report, 'Shift from Emerging to Pivotal: India in the New Geoeconomic Order,' launched at the World Economic Forum 2026.

'India's transformation is remarkable. What we're seeing is more than economic growth, it's about building trust and shaping the future of global collaboration. From advanced manufacturing and digital infrastructure to clean energy and AI, India is building an ecosystem that drives resilience and innovation at scale. The country's ability to turn ambition into action is what stands out, delivering real progress that opens new opportunities for businesses worldwide,' said Bill Thomas, Global Chairman & CEO, KPMG International.

Semiconductor Investments: Driving Technological Leadership

- India has approved six semiconductor fabrication plants ('fabs') with an outlay of $1.3 billion, marking a decisive shift from policy intent to execution-led capacity building.

- The government has allocated $2.2 billion for deep-tech research and development, reinforcing India's top 5 global ranking in critical technologies.

- Flagship initiatives such as the India Semiconductor Mission and Semicon India are accelerating domestic chip-making infrastructure, including fabrication capacity, testing facilities, and advanced packaging units.

- India is capitalizing on its domestic base of chemicals, minerals, and gases to reinforce upstream inputs, enabling more reliable and integrated semiconductor production.

- Investments in R&D and talent development are building a robust ecosystem for design, fabrication, and advanced technologies, supported by global partnerships.

- With these strategic moves, India is on track to join the top five global semiconductor hubs by 2030, supporting critical infrastructure, advanced computing, and secure communications.

AI Adoption and Impact: Transforming the Economy

- India's AI adoption is projected to generate $1.7 trillion in economic value by 2035, reshaping industries across the economy.

- Over 38,000 GPUs have been deployed under the IndiaAI Mission, supporting research, startups, and large-scale AI applications.

- More than 6 million people are employed in the technology and AI ecosystem, with 89% of new startups in 2024 leveraging AI in their products or services.

- India's responsible scaling of AI is supported by robust data governance frameworks, sectoral adoption in healthcare, agriculture, education, and defence, and the creation of the IndiaAI Safety Institute.

Yezdi Nagporewalla, Chief Executive Officer, KPMG in India, 'India's systemic transformation is redefining our industry's landscape. By moving from incremental progress to actively shaping global standards, India's leadership in digital infrastructure, sustainability, and advanced technologies like semiconductors and AI sets new benchmarks. For us, this means adapting to evolving standards, leveraging India's integrated ecosystem, and embracing new opportunities for innovation and resilient growth.'

Other key highlights:

- Trade Diplomacy: New agreements with the UK, Oman, and New Zealand expand India's global footprint.

- Manufacturing Momentum: PLI schemes have attracted $22.2 billion in investments across 14 sectors, generating $207.9 billion in incremental production and creating 1.26 million jobs.

- Energy Transition: India achieved a 50% non-fossil fuel share in total installed electricity capacity by June 2025, five years ahead of schedule.

India's semiconductor and AI surge is powering its transformation into a global technology leader, anchoring resilient supply chains and enabling innovation at scale. As global supply chains diversify and technology governance becomes more distributed, India's strategic investments signal a new era of collaboration and competitiveness.

For further information, please refer to the report here.

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