India’s semiconductor and AI push reshapes global economy: KPMG at WEF 2026

India is rapidly emerging as a major global technology and trade powerhouse, driven by strong investments in semiconductor manufacturing and rapid adoption of artificial intelligence ( AI ). This transformation is highlighted in KPMG ’s latest report, “Shift from Emerging to Pivotal: India in the New Geoeconomic Order,” released at the World Economic Forum (WEF) 2026 in Davos. KPMG, a leading global professional services firm, says India’s growth is no longer just about numbers but about building a reliable ecosystem that supports innovation, resilience, and global collaboration. What stands out is India’s ability to move from policy announcements to execution, turning ambition into tangible progress.

A major part of this shift is India’s push in semiconductor manufacturing. The government has approved six semiconductor fabrication plants ( fabs ) with an investment of $1.3 billion , signalling a decisive move from planning to building actual capacity. India has also allocated $2.2 billion for deep-tech research and development, reinforcing its place among the world’s top five countries in critical technologies. Initiatives like the India Semiconductor Mission and Semicon India are accelerating the development of chip-making infrastructure, including fabrication, testing, and advanced packaging. The report notes that India’s domestic availability of key inputs such as chemicals, minerals and gases gives it a strategic advantage in creating a more integrated and reliable semiconductor supply chain. With continued investment in R&D and talent, India is on track to become one of the top five semiconductor hubs globally by 2030 , supporting advanced computing and secure communications.

Alongside semiconductors, India’s AI adoption is growing rapidly and reshaping industries across the economy. KPMG projects that AI will generate $1.7 trillion in economic value for India by 2035 . The IndiaAI Mission has deployed over 38,000 GPUs , supporting research, startups and large-scale AI applications. The report also highlights that more than 6 million people are employed in the technology and AI ecosystem, and in 2024, 89% of new startups used AI in their products or services. India is focusing on responsible scaling of AI, backed by strong data governance frameworks and sector-specific applications in healthcare, agriculture, education and defence. The creation of the IndiaAI Safety Institute further strengthens the country’s commitment to safe and ethical AI deployment.

KPMG’s report also points to India’s expanding global influence. New trade agreements with the UK , Oman and New Zealand are widening India’s international footprint. The Production Linked Incentive ( 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. In the energy sector, India reached a 50% non-fossil fuel share in installed electricity capacity by June 2025, five years ahead of schedule. As global supply chains diversify and technology governance becomes more distributed, India’s strategic investments in semiconductors and AI are positioning the country as a critical partner for global businesses. The report suggests that India is no longer just an emerging market but is becoming a pivotal player in the global technology landscape, driving innovation and sustainable growth on a global scale.