KPMG flags five priorities for India to turn AI advances into economic gains

MUMBAI: India has the technology ambitions. Now it needs the talent, computing power and research muscle to turn them into economic gains. A report by KPMG has identified five priorities for the country to translate advances in artificial intelligence (AI) and other emerging technologies into tangible economic and social benefits.

The report said technology would play a crucial role in shaping India’s future growth, productivity, competitiveness and public service delivery. However, developing new technologies alone would not guarantee success. The real test would be whether India could build the capabilities and institutions needed to deploy them at scale.

“The question is whether India can develop the talent, research capabilities, enterprises, data infrastructure and institutions needed to create value from them at scale,” the report said.

KPMG identified five building blocks for this transition: skilled talent, research and development (R&D), computing and data infrastructure, enterprises capable of scaling technology, and digital public infrastructure.

India will need skilled professionals across research, engineering, data science, design and technical trades to develop and deploy emerging technologies, the report said. Strengthening research capabilities in universities, laboratories and businesses will also be critical, alongside mechanisms to move discoveries from research settings into commercial applications.

Computing capacity and reliable data systems form another key pillar, particularly for AI, which relies on secure, well-governed data ecosystems. Businesses, ranging from start-ups to established companies, will also need the ability to develop technology products and services and scale them beyond early adoption.

India’s digital payments ecosystem provides an example of how technology infrastructure can reshape economic activity.

The Unified Payments Interface (UPI) processed more than 24,161 crore transactions worth around Rs 314 lakh crore in the 2025-26 financial year. The platform had onboarded 55.49 crore users as of June 2026.

According to the report, UPI’s significance goes beyond transaction volumes. Its success demonstrates how public digital infrastructure that allows businesses to innovate on top of a common platform can change behaviour across the economy.

The next opportunity lies in extending this approach to emerging technologies, including AI, semiconductors, quantum technology, space technology, drones, green hydrogen, rare earths and biotechnology. These sectors could open new avenues for economic growth and social progress while strengthening India’s productivity and global competitiveness.

AI could augment human capabilities and create new sources of value across manufacturing, healthcare, agriculture, education and governance, the report said.

Realising these benefits, however, will require sustained investment in talent, research, infrastructure and enterprise development, alongside responsible governance. AI must be deployed in ways that are ethical, secure and inclusive as its use expands across industries and public services.

For India, the challenge is no longer simply to develop new technologies, but to make them work at scale. As the report puts it, “Technology, after all, is only as valuable as the outcomes it enables.”