Thoughts from Davos 2026: India recognised as a trusted value-chain partner

WEF 2026 highlighted AI's shift from hype to execution, India's rising global confidence, and the need for policy consistency, R&D investment, and trusted partnerships in a fragmenting world

True to its theme, ‘A Spirit of Dialogue,’ the World Economic Forum’s (WEF’s) annual meeting 2026 concluded on a reassuring note. Amid a temporary easing of tariff-related concerns and a more measured stance on recent geopolitical issues, the development offered some comfort for the broader global economy. 

One thing that has stood out for me during my more-than-a-decade of visits to the WEF is the steadily growing crowds at Davos. This growth underscores the forum’s significance as a global melting pot of ideas, intellect, and dialogue on the issues that matter most to the world.   

As I return from the cold weather and the charged atmosphere of the WEF — along with the scheduling challenges posed by high-profile visits — I would like to share a few key takeaways from the nearly 40–50 meetings I attended or observed from the sidelines. 

AI: The dominant agenda 

nArtificial intelligence (AI) consistently dominated the conversations among business leaders, permeating every company pavilion and pit stop along the promenade.  

nThe consensus among participants is that the AI 'honeymoon' is maturing into an implementation marathon. To derive real value, businesses must focus on foundational elements: Building a solid data infrastructure, reimagining work in an AI-first era, and strengthening guardrails for privacy and safety. Leaders will need long-term conviction and significant investments in infrastructure and skilling to succeed. 

nAt a broader level, an interesting debate emerged as leaders weighed the return on investment of building large, capital-intensive AI models with broad capabilities against deploying cost-effective solutions that yield high returns, particularly relevant for emerging markets. For the first time, the relevance of parameter counts as a benchmark for measuring economic value or competitive advantage came into question. 

nPressing issues surrounding AI governance, sovereignty, infrastructure, concentration and national priorities took centre stage. Notably, Satya Nadella’s emphatic call for “AI diffusion” underscored the need for AI benefits to reach ordinary citizens across geographies and industries. 

Vibrant India@Davos 

As an Indian, I felt immense pride witnessing the India story unfold vibrantly this year. It was truly an honour to lead the CII (Confederation of Indian Industry) delegation and experience the confidence and positivity surrounding the country, especially in comparison to previous years. 

Written in the stars: Bharti Enterprises chairman Sunil Bharti Mittal aptly stated during one of his rare panels at WEF 2026 that India’s journey to becoming the world’s third-largest economy is indeed “written in the stars” — and I could not agree more! The sentiment was palpable in the confident presence of Indian delegations and leaders at various sessions. 

States made an impression: One of the striking aspects was witnessing India’s competitive federalism in action. With 10 Indian states participating, each state showcased its initiatives to attract investment and towards ease of doing business, welcoming investors with open arms. Now, they must ensure that they walk the talk. 

nCommunication of reforms and ease of doing business: India’s strong macroeconomic fundamentals are widely acknowledged by business leaders. Now, to accelerate foreign direct investment, the silver bullet is policy consistency and continued focus on ease and predictability of doing business.  The government’s numerous reforms must also be communicated more effectively to all stakeholders to overcome the lingering ‘muscle memory’ that plagues perceptions of India. Indian businesses would find it liberating. This becomes even more critical at a time when many other economies are embracing the spirit of deregulation. Similar attention should be paid to consistently highlight the opportunities in emerging growth sectors such as defence, electronics, space, semiconductors, and global capability centres. 

Investing in R&D: Another significant takeaway from several sessions was the aggressive investment in research and development (R&D) by companies in competing economies to develop future-ready, cutting-edge products. In this shifting landscape, Indian companies will have no choice but to increase their R&D investments, leveraging core research and AI to remain competitive both domestically and globally. 

India as a ‘living lab’ for AI applications: In the realm of AI, India is no longer a 'follower' nation. With daily active users ranging from approximately 65 million to 73 million — the highest globally — we are the world’s largest 'living lab' for AI applications. Union minister for electronics and information technology Ashwani Vaishnaw highlighted Stanford rankings that place India favourably in AI preparedness and penetration. However, our goal is to achieve Sovereign AI, working across all layers, including infrastructure and domestic foundational models. 

A trusted partner:  Lastly, numerous discussions at WEF 2026 pointed to the melting away of multilateralism and growing significance of bilateral agreements, with nations increasingly seeking partners they can trust or share common values with. India’s recent bilateral agreements, including the landmark India-EU free trade agreement, reflect this shift. It bodes well that India is being recognised as a trusted partner in value chains and supply chains, which, however, will require greater collaboration with global companies to co-create and design solutions together. 

Even as I return feeling optimistic and energised, I recognise that the WEF consensus rarely mirrors reality. Only time will tell whether this year’s forum sets a new precedent.

The writer is chairman and CEO, EY India. The views are personal