India has assembled many of the building blocks of an AI economy: capital, talent, research and startups. But its next phase will depend as much on chips, electricity, skills and policy as on software, exposing the gap between rapid growth and the systems needed to sustain it.
India’s AI ambitions are now reflected in global rankings, investment flows and Bengaluru’s emergence as a lead ing innovation hub. Yet the numbers reveal only part of the story. Much of the hardware is imported, demand for skilled workers continues to outpace supply, and the infrastructure pow ering AI faces growing pressure. The country’s next challenge is no longer adopting AI, but building the industrial and social foundations that can sus tain its growth.
The Hardware Production Gap
The IndiaAI Mission has deployed over 38,000 GPUs and TPUs across domestic data centres. Registered startups and researchers can access this compute at ₹115–150 per GPU hour, roughly 42% cheaper than com mercial cloud rates. The governmentplans to scale this to 100,000 GPUs by December 2026. Not one of these chips is made in India. Every GPU in that stack is sourced from the same export controls that cut China off from this hardware exist as legal authority that could, under different political conditions, apply to India too.
A US India trade framework announced in February this year includes language protecting India’s chip access, but it depends on ongoing political align ment. Budget 2026–27 allocated ₹8,000 crore to the semiconductor and display manufacturing ecosystem programme, the largest single-year outlay since the mission launched, with a separate ₹1,000 crore for India Semiconductor Mission 2.0. The Tata PSMC fabrication plant at Dholera is targeting trial production by late 2026. But these plants are not building AI grade chips.
India’s Sovereign AI
At the IndiaAI Impact Summit 2026, three models were introduced: Sarvam AI, BharatGen, Gnani.ai. BharatGen has assembled over 15,000 hours of annotated voice data across 22 Indian languages. Sarvam’s Vision model, a 3-billion-parameter doc ument intelligence system, scored 84.3% on a standard OCR benchmark, outperforming Google Gemini 3 Pro (80.2%) and OpenAI’s GPT 5.2 (69.8%). Bhashini-v2, launched in early 2026, offers AI-powered translation across all 22 scheduled Indian languages and serves 140 million users on the MyGov platform. India is constructing the language of sovereignty. Indigenous models, na tional compute, and mission branding. But the engine underneath runs on hardware it cannot make and may not always be allowed to import.
The Jobless Economic Growth
India’s IT sector has long been the engine of middle-class stability, con tributing about 7.3% to GDP, employing over 5.8 million people directly, and creating the white-collar jobs that drove spending across housing, edu cation, and retail. That engine is under pressure from the same technology India is racing to lead. Particularly for mid-level coding, BPO, and testing roles that form the bulk of jobs in India. TCS announced 12,000 layoffs in 2025; Infosys and Wipro followed. Across the sector, jobs have been cut in what companies call strategic realignment.
NITI Aayog’s October 2025 report projected that in a worst-case sce nario headcount could fall to 6 million by 2031. In April 2026, global equity re search firm Bernstein wrote an open letter to Prime Minister Modi warning that India’s 10 to 15 million IT services, GCC, and BPO workforce faces direct exposure to AI-driven automation. Sonal Varma, chief economist for India and Asia ex-Japan at Nomura, said: “Entry-level routine jobs are being displaced, and mid-level jobs are transforming. India needs to create about 8 million jobs annually.’’
Skill Set for the Emerging Sector
AI DevOps engineers, data centre operators, ethical AI auditors are the major emerging roles. But they require skill sets entirely different from the mass-hiring model that built the IT sector. An IIM-Ahmedabad study found that 68% of white-collar work ers fear automation within five years; 55% have adopted AI tools, but only 48% have received any training. India produces over 1.5 million engineering graduates annually but ranks 18th globally in skills alignment and 73rd in human capital in terms of AI. Graduate volume is not the same as workforce depth.
In that way adoption without re skilling becomes exposure to disrup tion dressed up as progress. NASSCOM projects that the broader AI push could generate 750,000 jobs and add $500 billion in economic value by 2030. Whether they reach the workers being displaced depends on whether India can close the gap between how many people it trains and how well it trains them. It is a gap that every major index in 2026 has documented and none has resolved.
The Climate Bill
There is a cost to India’s AI ambitions that doesn’t appear in invest ment announcements is the physical climate risk accumulating around the infrastructure meant to run it all. A report by climate risk consul tancy assessed 2,595 planned data centres worldwide, examining risks of direct physical damage from climate hazards, operational disruption from extreme heat.
For India, the country ranks 11th globally in physical climate risk to planned data centre infrastruc ture. The more concerning finding is where that risk concentrates. Tamil Nadu, Telangana, and Karnataka, three of India’s major data centre corridors are among the top 30 regions globally for projected operational disruption from extreme heat. South Asia as a whole has one of the highest pro portions of high-risk planned facil ities globally, with risk projected to increase sharply toward the end of the century.
Data centres require large-scale cooling to keep servers running. Rising ambient temperatures increase cooling costs, strain electricity grids, and raise the probability of outag es. Countries including India, Brazil, Mexico, Indonesia, and Spain already record some of the highest projected operational disruption risks from heat globally, with more than 75% of anal ysed facilities classified as high risk. Productivity losses become ten times higher with indirect risks like power outages, water shortages, infrastructure failures.
India’s data centre ecosystem is concentrated in heat-exposed regions with al ready-strained urban infrastructure. Future vulnerability can be reduced by adequate planning during site selection, engineering standards, and resilience investment. Microsoft has committed $17.5 billion to Indian data centre expansion. Google is building a hub in Andhra Pradesh with a $15 billion commitment. Amazon has pledged $48 billion through 2030. At this stage, planning choices that are made now determine the risk profile for the next three decades. India has no mandatory national standard governing data centre siting or construction for climate resilience. This gap is no longer a future problem.
Where the Momentum Meets Reality
The 190% growth in Bengaluru’s ecosystem, the indigenous models outperforming global benchmarks, the public compute infrastructure being built at scale are all substantiated achievements. The QS Index gives In dia a perfect score of 100 on economic capacity and ranks it fifth globally in the “Future of Work” category. “The IndiaAI Mission represents substan tive, measurable progress, not merely a policy optics exercise.”
But the gaps are structural. The top ten Indian cities account for nearly half of all AI users while representing less than 10% of the population. The choices being made about who controls the technology, who gets the jobs, who bears the risks will deter mine whether this moment becomes something real or just another set of promises that get quietly shelved. What happens in policy rooms and planning offices will have to answer it.
EP Staff is the editorial team at EdPublica, an independent media organisation focused on science, education, environment and public policy. The team produces evidence-based news, features, explainers and analysis on issues that shape society and everyday life.
New Semiconductor Could Help Make Solar Cells More Efficient, Oxford Study Finds
Researchers from the University of Oxford and Wuhan University have identified bismuth sulfide as a semiconductor material that could overcome a longstanding trade-off between light absorption and electrical charge retention in solar energy conversion.
Advances in semiconductor materials could help improve the efficiency of solar energy conversion. Image credit:Pexels
Researchers from the University of Oxford and Wuhan University have identified a semiconductor material that could help overcome a longstanding limitation in solar energy conversion. The study, published in Nature on October 28, 2026, demonstrates how bismuth sulfide can absorb light strongly while slowing the loss of electrical charges generated during the process.
The discovery could offer a new direction for developing solar cells that convert sunlight into electricity more efficiently. It challenges the conventional understanding that materials with stronger light absorption necessarily lose their electrical charges more rapidly.
Solar cells use semiconductor materials to absorb sunlight and generate electrical charges. When sunlight strikes a semiconductor, it releases negatively charged electrons, leaving behind positively charged gaps known as holes. These charges must reach the electrodes to generate electricity. However, electrons and holes can recombine before being collected, releasing their energy and reducing the amount available for electricity generation.
This process, known as electron-hole recombination, is a major source of energy loss in solar cells. Materials that absorb sunlight efficiently often experience faster recombination, while those that retain electrical charges for longer periods generally have weaker light absorption. This trade-off has restricted the development of materials that combine both properties.
How bismuth sulfide slows electrical charge loss
The researchers found that bismuth sulfide (Bi₂S₃) combines characteristics of two conventional semiconductor types: direct and indirect semiconductors. Direct semiconductors absorb light strongly but generally allow electrons and holes to recombine quickly. Indirect semiconductors have slower recombination rates but weaker light absorption.
Bismuth sulfide exhibits a combination of these properties. The researchers describe it as a pseudo-direct semiconductor, in which closely spaced electronic energy levels allow the material to absorb light strongly while providing a lower-energy pathway that slows electrical charge recombination.
To investigate this mechanism, the team studied thin films of bismuth sulfide using ultrafast terahertz spectroscopy. By exciting the material with extremely short laser pulses, researchers measured the behaviour of the resulting electrical charges across different temperatures.
The findings, supported by electronic-structure calculations, showed that the material’s unusual electronic arrangement could reduce the rate of electron-hole recombination by approximately 75% at room temperature compared with conventional materials having similar light absorption.
Slower recombination could give electrical charges more time to reach the electrodes, potentially reducing energy losses during electricity generation. The researchers also suggest that the mechanism could be relevant to solar fuel technologies, where sunlight is used to drive chemical reactions.
Building on advances in solar-cell materials
The findings add to ongoing research aimed at improving solar-cell performance by controlling charge-carrier recombination. A study published in Nature Photonics in 2025 demonstrated how surface engineering could reduce recombination losses and improve the stability of perovskite solar cells.
By introducing sodium heptafluorobutyrate to modify the perovskite surface, researchers achieved a certified power-conversion efficiency of 26.96%. The devices retained their initial efficiency after 1,200 hours of continuous illumination and maintained 92% of their initial efficiency after 1,800 hours of ageing at 85°C.
Representative image.Image credit:Pexels
While the two studies use different approaches, they highlight the importance of controlling electrical charge losses in developing more efficient and stable solar technologies.
The Oxford researchers suggest that other materials, including tungsten diselenide and indium selenide, could be investigated for similar electronic properties. They also propose that techniques such as stretching layered crystals could help modify the energy levels of certain semiconductors.
However, the discovery does not mean that more efficient commercial solar panels are immediately within reach. The Oxford study establishes the physical mechanism in bismuth sulfide thin films rather than demonstrating a complete solar cell with improved power-conversion efficiency. Further research will be needed to assess its performance, stability and manufacturing potential.
By showing how strong light absorption can coexist with slower electrical charge recombination, the research offers a new direction for identifying semiconductor materials for future solar energy technologies.
MIT Researchers Develop Origami-Based Method for Lightweight, Load-Bearing Structures
MIT researchers have developed an origami-inspired construction technique that could enable lightweight, rigid structures using less material and simpler assembly methods.
MIT researchers have developed an origami-inspired construction technique that could enable lightweight, rigid structures using less material and simpler assembly methods.Image credit:MIT
Researchers at the Massachusetts Institute of Technology (MIT) have developed an origami-inspired construction method that could enable the fabrication of lightweight, rigid structures using less material and simpler assembly techniques. The approach could eventually be used for emergency shelters, architectural components and lightweight aerospace parts.
The modular system uses components cut from flat sheets of material, folded into shape and connected to form three-dimensional structural shells. According to MIT, simulations indicate that the structures can be approximately 3.5 times stiffer than those produced using some other structural origami techniques, while requiring only about two-thirds as much material.The research was announced by MIT on October 27 and published in the International Journal of Solids and Structures.
Building structures through folding
The researchers drew inspiration from geometric patterns developed by artist and scientist Ron Resch in the 1960s. Unlike methods that fold a single sheet into a complete structure, the new approach uses individually fabricated components that are folded and connected to create a larger framework.
Alfonso Parra Rubio, a graduate student at MIT’s Center for Bits and Atoms and lead author of the study, developed a method for combining two tripod-shaped units into a rigid building block. These blocks can be interconnected to form a network of beams that creates a lightweight structural shell.
To simplify the design process, the team developed computational software that automatically generates components according to the intended structure. The software checks whether individual units can be folded before combining them into the final design.
The resulting files can be sent to computer-controlled cutting equipment to manufacture components from flat sheets of material, including aluminium. Workers can then fold and assemble the units using basic hand tools, without requiring large-scale welding equipment.
Demonstration at architectural scale
To demonstrate the method’s scalability, the researchers constructed a 23-foot folded-aluminium sculpture that was installed in the atrium of the Boston Public Library. According to MIT, a team without professional construction experience assembled the structure in a matter of days.
The researchers say the modular design simplifies assembly because the components are engineered to fit into their intended positions as the structure takes shape.
Representational image.Image credit:Pexels
However, the reported stiffness improvements are based on simulations comparing the method with other origami-based systems. Further testing will be necessary to establish its performance across different materials, loading conditions and real-world construction environments.
Potential applications
One potential application is disaster-relief housing. Flat-packed components could be transported efficiently to areas affected by earthquakes or floods and assembled on site, potentially reducing transportation and construction requirements.
The approach could also be explored for lightweight aerospace components, modular robots, sound-dampening panels and building facades. Its ability to create rigid structural shells without interior support columns could offer additional flexibility in architectural design.
The researchers plan to test the technique in larger architectural structures and investigate more complex component geometries that could improve strength and stiffness. They also intend to develop a more accessible interface for designing structures using the system.
While the method has yet to demonstrate widespread use in buildings, the research illustrates how geometric design and digital manufacturing could offer alternatives for constructing complex structures.
Its practical adoption will depend on factors including durability, manufacturing costs, structural safety and performance under real-world conditions. Nevertheless, the approach presents a potential option for applications where reducing material use and simplifying assembly are priorities.
India’s Electronics Boom Masks a Deeper Dependence on Semiconductor Imports
India’s semiconductor industry is expanding, but dependence on imported chips remains a major challenge. New investments and manufacturing initiatives aim to strengthen domestic production and build a more resilient electronics supply chain.
A semiconductor microchip mounted on a printed circuit board. India is expanding domestic semiconductor manufacturing as it seeks to reduce dependence on imported chips.Image credit:Pexels
India’s electronics manufacturing industry is expanding rapidly, but its dependence on imported semiconductors remains a significant challenge. A new industry report highlights the gap between the country’s growing electronics production and its efforts to establish a self-reliant semiconductor ecosystem.
India’s annual semiconductor import bill has reached ₹2.8785 lakh crore, according to the State of India’s Semiconductor Industry 2026report released by the Data Security Council of India (DSCI) on October 23. The report estimates that India continues to depend on imports for 90–95 per cent of its semiconductor requirements.
The findings underline a central challenge in India’s technology ambitions: expanding the production of electronic devices while reducing dependence on foreign suppliers for the chips and components that power them.
Electronics production rises, but dependence persists
India’s electronics manufacturing industry has grown considerably over the past decade. According to government figures, electronics production increased from approximately ₹1.9 lakh crore in 2014–15 to ₹13.11 lakh crore in 2025–26. Electronics exports rose from around ₹38,000 crore to ₹4.24 lakh crore over the same period.
However, growth in electronics manufacturing does not necessarily mean that the components used in these products are manufactured domestically.
Semiconductors are essential to smartphones, computers, automobiles, telecommunications equipment and data centres. Their production involves complex processes requiring specialised facilities, advanced equipment, materials and highly skilled workers.
India has developed a substantial electronics assembly and manufacturing base, but building a semiconductor ecosystem requires investment across several stages, from chip design and wafer fabrication to assembly, testing and packaging.
The distinction matters because a country can manufacture and export electronic devices while continuing to import many of the high-value components used in them. Reducing semiconductor imports therefore requires strengthening domestic production capabilities rather than simply increasing the number of devices assembled within the country.
Five manufacturing units enter production
India launched the Semicon India Programme in 2021 with an initial outlay of ₹76,000 crore to establish a domestic semiconductor and display manufacturing ecosystem.
According to government figures and the DSCI report, 12 semiconductor manufacturing projects have been approved, involving investments exceeding ₹1.64 lakh crore. Five units have commenced commercial production.
The approved projects include silicon and silicon carbide fabrication facilities, a gallium nitride micro-LED display facility, and nine units focused on assembly, testing and packaging.
These facilities represent an important step towards establishing domestic semiconductor manufacturing capacity. However, the commencement of production does not, by itself, establish how much domestic demand the facilities can meet or how quickly they can reduce import dependence.
The government approved Semicon 2.0 in July 2026 with an outlay of ₹1,27,500 crore. The programme aims to strengthen research and development, chip design, manufacturing equipment, materials, workforce development and advanced packaging.
The broader objective is to develop an ecosystem in which domestic manufacturers can access more of the infrastructure and specialised services required to produce semiconductors.
Strengthening the supply chain
Semiconductor manufacturing depends on more than fabrication plants. It requires specialised materials, sophisticated machinery, reliable infrastructure, research capabilities and trained personnel.
A May 2026 roadmap by NITI Aayog identified India’s dependence on imported semiconductors and components as a vulnerability, particularly given the concentration of global manufacturing capacity in a limited number of countries.
Supply disruptions can affect industries ranging from automobiles and consumer electronics to telecommunications and defence. A shortage of critical chips can interrupt production even when manufacturers have sufficient capacity to assemble the final product.
India’s policy response has consequently extended beyond semiconductor fabrication. The Electronics Component Manufacturing Scheme seeks to develop domestic suppliers and strengthen the production of components used across the electronics industry.
Detailed view of organized electronic circuit boards in a production setting.Image credit:Pexels
Government figures published in September indicated that 106 projects had been approved under the scheme by August, with 38 approved plants already producing components.
Developing these supporting industries could help domestic manufacturers access more components locally. Nevertheless, the extent to which this reduces semiconductor dependence will depend on the types of components produced, their quality, cost and ability to meet industrial demand.
The workforce challenge
India’s established strength in semiconductor design offers another opportunity. The country has a large pool of engineers working in chip design and related technology services. Translating this advantage into manufacturing capacity, however, requires additional skills and infrastructure.
Operating semiconductor fabrication facilities involves specialised knowledge of materials, manufacturing processes, equipment maintenance and quality control. Assembly, testing and packaging also require trained technicians and engineers.
The DSCI report identifies workforce development as a priority, including the need to train approximately one lakh factory-floor technicians.
Such training will be essential if new facilities are to operate efficiently and expand production. Collaboration between industry, technical institutions and research organisations could help address the skills gap, although the availability of trained personnel alone cannot guarantee commercially competitive manufacturing.
Beyond factory announcements
India’s semiconductor ambitions reflect a wider effort to strengthen technological security and reduce exposure to international supply disruptions. Yet progress cannot be measured solely by the number of approved projects or the investments announced.
The more significant indicators will be sustained commercial production, manufacturing yields, domestic value addition, the development of local suppliers and the ability to meet demand at competitive prices.
India’s expanding electronics exports demonstrate the strength of its manufacturing growth. Its semiconductor import bill, meanwhile, illustrates the gap between assembling electronic products and producing the critical components within them.
Bridging that gap will require sustained investment in research, infrastructure, skilled labour and the supporting industries that make semiconductor production possible. Whether India’s new manufacturing projects can translate policy ambitions into a resilient domestic supply chain will determine how far the country can move towards semiconductor self-reliance.