India's Tech Ambitions Move Beyond Davos Rhetoric

$240 billion. That's how much India plans to invest in electronics manufacturing over the next six years. At Davos 2026, Indian officials didn't just talk about becoming a tech powerhouse—they outlined the execution roadmap that's already underway.

The Davos Pitch Meets Ground Reality

India's presence at this year's World Economic Forum carried a different tone. Gone were the aspirational promises of previous years. Instead, officials presented concrete progress on semiconductor fabs, electronics manufacturing incentives, and AI infrastructure development. The Production Linked Incentive (PLI) scheme has already attracted $15 billion in committed investments from global manufacturers.

But the real story isn't happening in Swiss conference rooms. It's unfolding in states like Karnataka, Tamil Nadu, and Gujarat, where construction crews are building the physical infrastructure of India's tech ambitions. Micron Technology's$2.7 billion memory chip facility in Gujarat represents just the beginning of what officials call India's "electronics Second Wave."

The timing reflects a broader geopolitical shift. As companies diversify supply chains away from China-centric models, India positions itself as the primary alternative for large-scale electronics manufacturing. Trade tensions, pandemic disruptions, and national security concerns have created an opening that India is aggressively pursuing.

From Assembly to Innovation

India's first electronics wave focused primarily on assembly and basic manufacturing. The second wave aims higher: semiconductor fabrication, advanced component production, and indigenous R&D capabilities. The difference matters enormously for long-term competitiveness.

Tata Group's partnership with Taiwan Semiconductor Manufacturing Company (TSMC) exemplifies this shift. Rather than simply assembling imported components, the collaboration targets advanced chip manufacturing on Indian soil. Similarly, the government's push for domestic 5G equipment production through companies like Tejas Networks signals intent to control critical technology infrastructure.

The human capital dimension is equally ambitious. India plans to train 85,000 semiconductor professionals over the next five years through specialized programs at institutions like the Indian Institute of Science and IIT Bombay. This represents recognition that hardware manufacturing requires different skills than the software services that built India's initial tech reputation.

Execution Challenges Behind the Confidence

Yet significant obstacles remain. Semiconductor manufacturing demands extraordinary precision in everything from power supply stability to skilled workforce development. India's infrastructure, while improving rapidly, still faces reliability challenges that could derail sensitive manufacturing processes.

The regulatory environment presents another complexity. Multiple state governments compete for major investments, sometimes creating conflicting incentive structures. Coordinating federal policies with state-level implementation requires the kind of bureaucratic efficiency that India has historically struggled to achieve at scale.

International partnerships also carry risks. As Apple and Samsung expand Indian operations, they bring supply chain requirements that local vendors must meet. The gap between current capabilities and global standards remains substantial in many component categories.