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India's annual semiconductor demand is expected to exceed USD 150 billion over the next five years, Union Commerce and Industry Minister Piyush Goyal said on Thursday, highlighting the government's efforts to build a domestic chip manufacturing ecosystem and expand the country's role in artificial intelligence (AI).
Speaking at the Public Affairs Forum of India's (PAFI) 13th Annual Forum 2026, Goyal said the government was investing substantial capital in developing the semiconductor ecosystem, covering chip production, design, packaging and testing, to reduce the country's dependence on imports. He said India's annual semiconductor consumption demand was expected to grow to over USD 150 billion in the next five years. Goyal also said India was looking to participate across the AI technology stack, from large language models to AI agents, as the government seeks to strengthen the country's position in emerging technologies. "India is not going to be shy or going to be apologetic or avoid," he said, referring to the adoption of new technologies. "AI, for example, is something that we're going to embrace," he added. Addressing concerns about the impact of AI and automation on employment, Goyal said the technology would create new opportunities for India, although the nature of jobs could change. He stressed the need to prepare young workers for emerging roles, including cybersecurity and the development of AI agents. "It's going to open up such huge opportunities for India. We've got to be ready for that. We've got to skill our youngsters for that," he said. The minister also referred to Prime Minister Narendra Modi's emphasis on skilling 10 million young people in AI. Goyal said the increasing use of AI would create demand for skilled professionals capable of developing, managing and validating AI systems. He also cautioned businesses against relying entirely on AI-generated information without human verification, citing the possibility of inaccurate responses and the risks associated with using such information in professional decision-making. "Please don't use AI-generated content as it is. Superimpose the human brain before you use it, otherwise you are at great risk and cost," he said. Goyal urged businesses to establish skilling centres to prepare young people for emerging technologies and said human expertise would remain essential even as AI models become more advanced. He also highlighted India's growing startup ecosystem, saying the government's focus was shifting towards innovation and deep technology. The minister said India had more than 120 unicorns and stressed the need to encourage young entrepreneurs to develop new technologies and pursue opportunities in emerging sectors. Earlier, Goyal had outlined India's semiconductor demand projection during his visit to Japan in August 2026, when he said domestic demand could reach USD 150 billion by 2032. (ANI)
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