Will India’s AI Adoption Really Generate $1.7 Trillion by 2035?
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Synopsis
A recent KPMG report unveils India's potential to generate $1.7 trillion in economic value through AI adoption by 2035. With strong investments in semiconductors and AI, the country's transformation is not just about growth; it's about fostering trust and global collaboration. Discover the implications of these advancements.
Key Takeaways
- India's AI adoption could generate $1.7 trillion by 2035.
- Strong investments in semiconductors support AI growth.
- Over 38,000 GPUs deployed under the IndiaAI Mission.
- Government initiatives are accelerating chip manufacturing.
- AI utilization among startups is projected at 89 percent in 2024.
New Delhi, Jan 22 (NationPress) As India's semiconductor sector expands, forecasts indicate that its embrace of artificial intelligence (AI) could yield $1.7 trillion in economic benefits by 2035 and transform various industries throughout the nation, according to a recent report.
A KPMG report, unveiled at the World Economic Forum 2026 in Davos, asserts that India's commitment to responsible AI expansion is bolstered by strong data governance frameworks, sector-wide implementation in areas such as healthcare, agriculture, education, and defense, as well as the establishment of the IndiaAI Safety Institute.
“India's rise as a significant player in global trade, technology, and sustainability is supported by courageous investments in semiconductor manufacturing and swift AI adoption,” the report highlights.
The advisory firm underscored India's progress in this field, including the sanctioning of six semiconductor fabrication facilities with a budget of $1.3 billion and a dedicated $2.2 billion for deep-tech research and development.
Government-backed flagship programs, such as the India Semiconductor Mission and Semicon India, are expediting chip manufacturing frameworks, testing, and advanced packaging, the report noted.
The report also pointed out the deployment of over 38,000 GPUs as part of the IndiaAI Mission, with more than 6 million individuals engaged in the technology and AI sectors. Additionally, it stated that 89 percent of new startups in 2024 will utilize AI.
“India's transformation is extraordinary. What we are witnessing extends beyond mere economic growth; it involves fostering trust and shaping the future of global cooperation. From advanced manufacturing and digital infrastructure to clean energy and AI, India is creating an ecosystem that promotes resilience and innovation on a large scale,” remarked Bill Thomas, Global Chairman and CEO of KPMG International.
“The nation’s capacity to convert ambition into tangible action is commendable, resulting in substantial progress that creates new opportunities for businesses worldwide,” he added.
According to Yezdi Nagporewalla, CEO of KPMG in India, India's leadership in digital infrastructure, sustainability, and advanced technologies like semiconductors and AI establishes new standards.
The PLI schemes have attracted $22.2 billion, leading to $207.9 billion in additional production and generating 1.26 million jobs, with India achieving a 50 percent share of non-fossil fuel in its installed capacity by June 2025, the report concluded.
Point of View
This report highlights India's commitment to becoming a global leader in technology. The collaboration between government initiatives and the private sector's innovation sets a robust framework for future growth. As the nation embraces AI and semiconductor advancements, the emphasis on sustainability and responsible tech creates an opportunity for India to redefine its role in the global economy.
NationPress
23/01/2026
Frequently Asked Questions
What is the projected economic value of AI adoption in India by 2035?
India's adoption of AI is projected to generate $1.7 trillion in economic value by 2035.
Which sectors are benefiting from AI adoption in India?
AI adoption in India is impacting various sectors including healthcare, agriculture, education, and defense.
What initiatives are supporting India's semiconductor industry?
Government initiatives like the India Semiconductor Mission and Semicon India are supporting the growth of the semiconductor industry.
How many GPUs have been deployed under the IndiaAI Mission?
Over 38,000 GPUs have been deployed under the IndiaAI Mission.
What impact do PLI schemes have on India's job market?
The PLI schemes have generated 1.26 million jobs in India.
