New Delhi, January 8 (IANS). If the excitement around AI subsides, then the attention of big global investors may again return to India. This can bring big benefits in Indian markets. This has been said in the Bay Capital report released on Thursday.
The report says that most of the AI-related infrastructure around the world is being built by taking loans. This situation resembles the telecom and fiber network booms seen earlier, where risks emerged later.
The report also said that companies have invested $30 to 40 billion on generative AI, but 95 percent of the organizations have not received any benefits so far.
According to the report, in today’s investment environment related to AI, India’s market structure is being considered a weakness. But when the hype of AI ends, then this can become a profitable deal for India.
The report said India’s low involvement in a hot-button topic like AI could yield uneven but big benefits in the future when investors again invest on real economic grounds.
The report said that India currently lacks AI infrastructure like semiconductor manufacturing or very large data centers. Despite this, India is fast becoming a country where work is becoming faster and easier with the use of AI. Due to this, the capacity to work in the large domestic market of India is increasing and the production is also improving.
Due to AI-related investments, the flow of capital across the world has changed, due to which foreign portfolio investors’ money has flowed out of India. According to the report, about $23 billion in the year 2024 and about $13 billion in 2025 so far, foreign investment has gone out of India.
The report said that if investors had earlier decided to ‘Sell India’ for investing in AI, then ‘Buy India’ could be their next decision once the hype of AI ends.
The report also said that despite the outflow of foreign investment, India’s economic condition remains one of the strongest economies in the world.
India contributes 9 percent to global GDP growth and India’s economy is expected to grow at over 6.7 percent in the coming years from 2025 to 2028, which is the fastest among the G20 countries.
–IANS
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