India is accelerating its tech ecosystem with a ₹1.275 lakh crore outlay under the Semicon 2.0 mission, alongside a nationwide push for agentic AI in telecom and hardware. Showcased at the India Mobile Congress 2026, these initiatives aim to move domestic manufacturing toward advanced nodes while enabling autonomous network operations.
India is rapidly advancing its technology sector through a dual strategy of strengthening domestic semiconductor manufacturing and integrating agentic AI into telecommunications and consumer electronics. These developments, currently in the spotlight at the India Mobile Congress 2026 (October 7–10), reflect a shift toward a more autonomous and sovereign digital infrastructure.
Scaling Semiconductor Infrastructure
The government’s Semicon 2.0 mission, approved in July 2026 with an outlay of ₹1.275 lakh crore, has become the backbone of this strategy. The program is designed to deepen the local value chain, covering chip design, materials, and fabrication. Currently, 12 semiconductor projects have secured approval across six Indian states. Industry data indicates that investment commitments have crossed ₹1.64 lakh crore, with three facilities already having commenced commercial production. While the initial focus remains on legacy nodes, the ongoing influx of capital and technical expertise is intended to shorten the gap between Indian facilities and established global manufacturing standards.
Telecoms Embrace Autonomous AI
Parallel to hardware manufacturing, the telecommunications sector is witnessing a significant transformation through the adoption of agentic AI. At the India Mobile Congress 2026, telecom operators demonstrated how autonomous systems can replace traditional manual network management with zero-touch operations. By deploying AI that can make independent decisions for predictive maintenance and customer service, telecom firms are evolving into comprehensive service providers. This shift is extending to the enterprise level, where operators are offering integrated cybersecurity, authentication, and data center solutions.
Consumer electronics hardware is also evolving to support this software shift. On October 6, 2026, MediaTek introduced its Dimensity 9600 Pro chipset, built on a 2nm process node. The inclusion of native AI architecture in such chipsets allows smartphones to handle complex agentic AI tasks locally on the device, reducing dependency on cloud computing.
Risks and Future Monitorables
Despite the rapid momentum, the sector faces structural challenges that investors should keep in mind. The manufacturing of advanced semiconductor nodes requires substantial resources, including precision infrastructure, consistent power, and large volumes of water, which remain long-term execution hurdles. Additionally, India faces intense competition from established global manufacturing hubs like Taiwan and China, which have years of experience in high-yield production.
For the telecom sector, transitioning to fully autonomous systems involves operational risks, including the need for robust governance frameworks to oversee AI decision-making. Investors tracking this sector will likely monitor the commissioning timelines for the approved semiconductor facilities and the actual performance of new AI-integrated telecom frameworks in live network environments over the coming quarters.