India’s semiconductor industry, as it expands, is anticipated to create $1.7 trillion in economic value by 2035 through the adoption of artificial intelligence (AI), according to a recent report. The report, unveiled at the World Economic Forum 2026 in Davos by KPMG, highlighted India’s responsible AI scaling, supported by strong data governance frameworks and sectoral adoption in various fields like healthcare, agriculture, education, and defense.
The report emphasized India’s significant progress in the sector, including the approval of six semiconductor fabrication plants with a $1.3 billion investment and the allocation of $2.2 billion for deep-tech research and development. Government-backed initiatives like the India Semiconductor Mission and Semicon India are playing a crucial role in accelerating chip-making infrastructure, testing, and advanced packaging.
Furthermore, the report pointed out the deployment of over 38,000 GPUs under the IndiaAI Mission, the employment of over 6 million individuals in the technology and AI ecosystem, and the fact that 89% of new startups in 2024 utilized AI. Bill Thomas, Global Chairman and CEO of KPMG International, praised India’s transformation, highlighting the country’s ability to convert ambition into tangible progress that fosters global collaboration and innovation.
India’s leadership in digital infrastructure, sustainability, semiconductors, and AI is setting new standards, according to Yezdi Nagporewalla, CEO of KPMG in India. The report also mentioned that the Production Linked Incentive (PLI) schemes have attracted $22.2 billion, resulting in $207.9 billion in incremental production and the creation of 1.26 million jobs. By June 2025, India achieved a 50% share of non-fossil fuel capacity in its installed capacity.
