India may not yet be among the global leaders in artificial intelligence, semiconductor manufacturing, or advanced chip technologies, but it has a significant opportunity to create economic value by applying AI to solve real-world challenges, according to World Bank Executive Director Neelkanth Mishra.
Speaking on India’s technology landscape, Mishra said the country’s strength lies not in competing immediately with global giants developing large language models or advanced semiconductors, but in deploying AI at scale across sectors such as healthcare, education, financial services and governance.
He noted that India currently faces limitations in high-risk capital availability, making it difficult for domestic AI startups to attract the massive investments seen in countries like the United States. While some Indian firms struggle to raise a few hundred million dollars, leading global AI companies are securing funding worth tens of billions of dollars.
Despite these challenges, Mishra expressed confidence that India will benefit when the focus shifts from creating AI technologies to using them effectively. He said the real economic gains will emerge when AI is integrated into healthcare delivery, education systems, banking access, and other public services.
Mishra also highlighted progress under the India Semiconductor Mission, describing the country’s achievements over the past four years as significant. India has moved from having virtually no semiconductor manufacturing infrastructure to establishing multiple semiconductor packaging facilities, with its first wafer fabrication plant expected within the next few years.
However, he acknowledged that India remains far behind global leaders in advanced chip manufacturing. While leading nations are producing chips at the 1.8-nanometre level, India’s upcoming fabrication facilities are expected to operate at 28-40 nanometres.
Looking ahead, Mishra said the proposed Semicon 2.0 programme could help attract manufacturers producing chips in the 7-12 nanometre range by around 2032, strengthening India’s position in the global semiconductor ecosystem.
He also called for substantially greater investment in research, deep technology, and innovation. Although India’s startup and innovation ecosystem has expanded rapidly in recent years, he said it must grow significantly larger to support the country’s long-term technological ambitions.
