Union Bank of India sees major AI semiconductors defense investments
Business
Union Bank of India's report says the next three to five years will see huge investments flowing into artificial intelligence (AI), semiconductors, and defense.
We are talking nearly ₹5.9 lakh crore for AI alone, with semiconductors and defense not far behind, making these sectors the new hotspots for financing in India.
Report flags risks, recommends green loans
The report also points to battery storage and green hydrogen projects as promising areas, but notes banks need to be careful about tech becoming outdated and uncertain revenues.
To handle long payback periods (especially in chips or space), the bank suggests smarter lending strategies like milestone-based funding and green loans.