Chief Economic Advisor V Anantha Nageswaran stated that the current lack of focus on artificial intelligence (AI) in Indian equities, which has contributed to a selloff by foreign investors, will transform into a "strength" within a year. He made these remarks during the SBI-Amundi India Investor Seminar held on October 9, 2026.
Current Economic Context
Nageswaran noted that the Indian rupee has faced depreciation pressures, nearing its lifetime lows. He emphasized that if the AI boom falters, India is well-positioned to benefit from this situation. "One year from now, we might find that the absence of an AI trade will turn out to have been India's strength," he remarked.
Investor Sentiment
Acknowledging that the lack of AI opportunities is viewed as a drawback by global investors, Nageswaran expressed confidence in India's potential to leverage a "second mover advantage" in the AI sector. He described AI as a "borrowing story" and suggested that a market shake-off would redirect capital towards growth opportunities that do not rely on AI.
