Ashhar Alam | New Delhi
India is rapidly cementing its position as a global technology and trade powerhouse, driven by bold investments in semiconductors and accelerated adoption of artificial intelligence (AI), according to KPMG’s latest report, “Shift from Emerging to Pivotal: India in the New Geo-economics Order,” launched at the World Economic Forum 2026.
“India’s transformation goes beyond economic growth; it is building trust and shaping global collaboration,” said Bill Thomas, Global Chairman & CEO of KPMG International. “From advanced manufacturing and AI to clean energy, India is creating a resilient ecosystem that delivers innovation at scale and opens new opportunities worldwide.”
India has greenlit six semiconductor fabs with a total investment of $1.3 billion, signaling a shift from policy announcements to execution-driven capacity building. Another $2.2 billion has been earmarked for deep-tech research, reinforcing India’s place among the top five global technology nations.
Flagship initiatives like the India Semiconductor Mission and Semicon India are accelerating domestic chip-making infrastructure, including fabrication, testing, and advanced packaging facilities. Leveraging domestic resources such as chemicals, minerals, and gases, India is strengthening upstream inputs for more integrated and reliable semiconductor production.
Combined with R&D and talent development programs, these measures are positioning India to become one of the world’s top five semiconductor hubs by 2030, supporting critical sectors like advanced computing, defence, and secure communications.
India’s AI push is projected to generate $1.7 trillion in economic value by 2035, with widespread adoption reshaping sectors from healthcare and agriculture to education and defence. Under the IndiaAI Mission, over 38,000 GPUs have been deployed, enabling research, startups, and large-scale applications.
The technology ecosystem employs more than 6 million people, and 89% of new startups in 2024 are leveraging AI in their products or services. Responsible scaling is reinforced by robust data governance frameworks and initiatives like the IndiaAI Safety Institute.
“India’s systemic transformation is setting new benchmarks,” said Yezdi Nagporewalla, CEO of KPMG India. “By moving from incremental progress to actively shaping global standards, India is driving innovation, resilience, and growth across sectors.”
Trade Diplomacy: 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 1.26 million jobs.
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Energy Transition: India achieved 50% non-fossil fuel electricity capacity by June 2025, five years ahead of schedule.
KPMG’s report underscores how India’s surge in semiconductors, AI, and sustainable manufacturing is not only powering domestic growth but also positioning the country as a key player in global supply chains and technology governance. With its integrated ecosystem and forward-looking policies, India is ushering in a new era of innovation, collaboration, and competitiveness.
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