KPMG says India’s AI and semiconductor push is reshaping its role in the global economy
A KPMG report launched at World Economic Forum 2026 says India’s growing semiconductor manufacturing ambitions and rapid AI adoption are strengthening its position in trade and technology, backed by approvals for fabs, deep-tech R&D spending, and mission-led GPU deployment.
From emerging market to pivotal player: the report’s framing
India’s role in the global tech economy is increasingly being described as structural rather than cyclical, and a new KPMG report launched at the World Economic Forum 2026 makes that case explicitly. Released in Davos around an event dated 21 January 2026, the report argues that India’s investments in semiconductor capacity and the pace of AI adoption are turning the country into a more decisive node in global supply chains and digital infrastructure.
The report’s broader thesis is that India’s advantage will come from connecting advanced manufacturing, digital public infrastructure and sustainability-linked growth. In that framework, chips and AI are not separate themes: they are interdependent, with compute, connectivity and industrial capability reinforcing each other.
Semiconductor capacity: signalling execution, not just policy
KPMG points to India’s semiconductor manufacturing push as moving from intent to implementation. It references approvals for multiple fabrication plants, along with an ecosystem approach that includes testing, packaging and upstream inputs such as chemicals and specialty gases. The narrative is that India is attempting to build a more integrated chain so that chip-making does not remain a standalone headline project.
The report also highlights government outlays for deep-tech research and development, suggesting a parallel bet on domestic talent and design capability so the country can compete not only as an assembly base but as a contributor to critical technology value chains.
AI deployment: compute access and guardrails
On the AI side, KPMG describes adoption as broad-based across sectors and points to mission-led compute deployment, including GPUs, as a way to support research, startups and scaled applications. It also references efforts that emphasise responsible scaling, including data governance and institutional safety capacity, as AI spreads into sensitive domains such as healthcare, education, agriculture and defence.
Taken together, the report presents India’s tech story as an attempt to combine speed with structure: build semiconductor capacity for strategic resilience while expanding AI capability in a way that attracts partnerships and aligns with global standards. Whether these ambitions translate into durable advantages will depend on execution—timelines for fabs, availability of skilled workers, and the ability to keep costs and reliability competitive.