The 2026 Annual Meeting of the World Economic Forum is taking place from 19-23 January in Davos, Switzerland. Under the theme of ‘A Spirit of Dialogue', world leaders from government, business, civil society and academia will convene to engage in forward-looking discussions to address global issues and set priorities with a call for bold collective action.
Launch of India’s ‘Shift from emerging to pivotal: India in the new geoeconomic order’ report
KPMG in India, in partnership with the Confederation of Indian Industry (CII), hosted a dynamic panel discussion, “Shift from emerging to pivotal: India in the new geoeconomic order”. This session explored India’s rising prominence in global business strategy, investment flows and policy frameworks that foster inclusive growth.
A key highlight of the event was the launch of “Shift from emerging to pivotal: India in the new geoeconomic order". This insightful report illustrates how India’s policy, digital and energy architectures, combined with innovation momentum, are shifting the country from emerging to pivotal. It outlines an action agenda that presents a forward-looking lens for how India can influence norms, connect markets and enable sustained growth in an increasingly complex global environment. The report was unveiled in the presence of:
- Shri Kinjarapu Rammohan Naidu, Hon’ble Minister of Civil Aviation, Government of India
- Shri Harsh Rameshkumar Sanghavi, Hon'ble Deputy Chief Minister, Government of Gujarat
- Chandrajit Banerjee, Director General, CII
- Ramachandran Dinesh, Chairman TVS Supply Chain Solutions
- Rohit Kapoor, Chairman and Chief Executive Officer, EXL (NASDAQ: EXLS)
- Bill Thomas, Global Chairman and Chief Executive Officer, KPMG International
- Yezdi Nagporewalla, Chief Executive Officer, KPMG in India.
India’s semiconductor and AI surge is powering its transformation into a global technology leader, anchoring resilient supply chains and enabling innovation at scale. As global supply chains diversify and technology governance becomes more distributed, India’s strategic investments signal a new era of collaboration and competitiveness.
Shift from emerging to pivotal: India in the new geoeconomic order
Reinforcing India’s role by advancing reforms, strengthening reliability and deepening resilient capabilities
Global supply systems are undergoing a fundamental reset as fragmentation, regionalisation and technology‑driven divergence reshape the architecture of trade, production and investment. Nations are reorienting to safeguard continuity while capturing advantage in a landscape defined by shifting alliances, multi‑hub power structures and rising risk sensitivity. As geopolitical alignments grow more fluid, economic strategies are being recast to prioritise resilience, autonomy and durable competitiveness.
Within this recalibration, India is shaping the evolving geoeconomy by translating domestic reforms into cross‑border leverage and aligning national ambition under Viksit Bharat 2047 with execution at scale. The shift signals India’s transition from participating in global systems to steering outcomes, with regulatory policies as a central driver of competitive positioning.
India’s pivot is being reinforced through more harmonised trade engagements that support preferential entry, streamlined compliance and stronger sustainability alignment. The partnerships with priority economies enhance regulatory compatibility and attract long‑term investment. At the same time, rising domestic capacity and the progression of targeted policy instruments from formulation to operational delivery are enabling India to translate external opportunities to sustained performance and create value across sectors supported by aligned policy, technology and institutional readiness.
Strategic pillars shaping India’s progress
Moving from strategic foundations to forward execution, the action agenda sets out pathways to enhance India’s economic readiness through greater regulatory alignment and simpler interpretations. It highlights the value of aligning state‑level regulations to encourage smoother multi‑jurisdiction operations. Strengthening backward linkages through enhanced domestic capability in key value chains is presented as another priority, supported by the development of technology‑enabled MSME clusters and improved access to essential inputs.
The agenda also emphasises the importance of scaling infrastructure through integrated logistics, modernised energy systems and investment‑ready industrial environments to enhance reliability across sectors. Advancing digital sovereignty through secure compute capacity, sustainable data centre ecosystems and DPDP‑aligned frameworks forms a complementary pillar. Further, it underlines the need for skill enhancement through outcome‑oriented apprenticeships and continuous workforce development. Together, these areas contribute to a more coordinated, resilient and globally connected economic architecture.
In summary, the report illustrates how India’s policy, digital and energy architectures, combined with innovation momentum, are shifting the country from emerging to pivotal. It outlines an action agenda that presents a forward-looking lens for how India can influence norms, connect markets and enable sustained growth in an increasingly complex global environment.
India’s strategic shift over the last 18 months…
Market access and trade
Shifted from an emerging export market to an active alternative supply-chain hub as global firms diversify away from concentrated geographies
Signed trade agreements with the U.K., Oman and New Zealand, materially expanding preferential market access and signalling deeper trade integration
Investor confidence
Foreign capital flows have become more conviction-driven, reflecting confidence in India’s macro stability and policy continuity
FDI equity inflows grew nearly 13 per cent y-o-y in FY25, highlighting investors’ view of the Indian market as strategic than a purely demand-driven1
Manufacturing
PLI has shifted from policy intent to measurable execution, converting incentives into USD22 bn of realised investments across 14 sectors as of Sept’25, proving its ability to mobilise private capital at scale2
The impact is visible in outcomes, with over USD200 bn in incremental production and sales and 1.26 mn jobs created, positioning PLI as a concrete driver of manufacturing scale and employment growth2
Technology and innovation surge
Approval of six semiconductor fabs with an outlay of over USD1.3 bn marks a shift to execution-led capacity planning, anchoring higher-value manufacturing and ecosystem depth3
Budget FY26 allocated USD2.2 bn to high-impact R&D and deep tech, reinforcing India’s top five global ranking in critical technologies and enhancing long-term innovation leadership4
Defence
Robust indigenous production supported record exports of USD2.6 bn in FY25 (private sector contributing 64 per cent), reinforcing the emergence of a commercially viable, export-ready manufacturing hub5
Established defence partnerships with the U.S. and the U.K. to facilitate strategic capability transfer and joint R&D across emerging domains
Energy transition
Reached 50 per cent non-fossil fuel share in total installed electricity capacity in Jun’25, achieving the milestone over five years earlier than committed6
Green hydrogen partnerships with Singapore and Germany integrated India as a key supplier in Asia-Europe decarbonisation supply chains, strengthening exports, standards and long-term investments
Market access and trade
Shifted from an emerging export market to an active alternative supply-chain hub as global firms diversify away from concentrated geographies
Signed trade agreements with the U.K., Oman and New Zealand, materially expanding preferential market access and signalling deeper trade integration
Investor confidence
Foreign capital flows have become more conviction-driven, reflecting confidence in India’s macro stability and policy continuity
FDI equity inflows grew nearly 13 per cent y-o-y in FY25, highlighting investors’ view of the Indian market as strategic than a purely demand-driven1
Manufacturing
PLI has shifted from policy intent to measurable execution, converting incentives into USD22 bn of realised investments across 14 sectors as of Sept’25, proving its ability to mobilise private capital at scale2
The impact is visible in outcomes, with over USD200 bn in incremental production and sales and 1.26 mn jobs created, positioning PLI as a concrete driver of manufacturing scale and employment growth2
Technology and innovation surge
Approval of six semiconductor fabs with an outlay of over USD1.3 bn marks a shift to execution-led capacity planning, anchoring higher-value manufacturing and ecosystem depth3
Budget FY26 allocated USD2.2 bn to high-impact R&D and deep tech, reinforcing India’s top five global ranking in critical technologies and enhancing long-term innovation leadership4
Defence
Robust indigenous production supported record exports of USD2.6 bn in FY25 (private sector contributing 64 per cent), reinforcing the emergence of a commercially viable, export-ready manufacturing hub5
Established defence partnerships with the U.S. and the U.K. to facilitate strategic capability transfer and joint R&D across emerging domains
Energy transition
Reached 50 per cent non-fossil fuel share in total installed electricity capacity in Jun’25, achieving the milestone over five years earlier than committed6
Green hydrogen partnerships with Singapore and Germany integrated India as a key supplier in Asia-Europe decarbonisation supply chains, strengthening exports, standards and long-term investments
…signifying a pivotal inflection point
[1] Financial year-wise FDI Equity Inflow, Department for Promotion of Industry and Internal Trade (DPIIT), 9 December 2025
[2] Production Linked Incentive Scheme Strengthens India’s Manufacturing Capacity and Export Performance, PIB, 12 December 2025
[3] India’s Semiconductor Revolution, PIB, 3 August 2025
[4] RDI Fund to Drive Private-Sector Led Deep-Tech Innovation and Position India as a Global Leader: Dr. Jitendra Singh, Department of Science & Technology, 26 November 2025
[5] Defence Atmanirbharta: Record Production and Exports, PIB, 20 November 2025
[6] Non-Fossil Fuels Contribute More than Half, as Total Installed Power Generation Capacity Reaches 505 GW, PIB, 18 December 2025
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