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AI Boom and India: The entire world is currently focused on AI, but India is not receiving foreign investment in this field. Renowned expert Ruchir Sharma has now explained the reasons behind this.

AI Boom and India: Why is India not benefiting from the AI wave?

AI Boom and India: AI is the talk of the world these days. Many companies are raising significant funds in this wave, and their valuations are breaking records. However, this wave of AI is not being felt in India, and investors are avoiding investing here. Ruchir Sharma, Chairman of Rockefeller International and Chief Investment Officer of Breakout Capital, explained the reason for this. He said that while the entire world's focus is on India today, foreign investors are reluctant to invest in India. Let's explore his reasons for this.

Why is India not benefiting?

Speaking to The Indian Express, Sharma compared the AI boom to the dot-com bubble, saying that while Indian companies benefited greatly from business models like arbitrage, India doesn't have such a significant opportunity this time around. Sharma said that in his 30-year career, he had never seen a situation where investors were so disinterested and ignored in India. He said that India's IT sector was solely engaged in arbitrage business and wasn't doing anything innovative. As a result, we don't have anything like that now, and this is why foreign investors aren't coming to India. This is why India isn't seen as a major player in the AI sector. When the AI bubble bursts, he hopes India will start receiving some attention again.

Money collected from only a few countries and companies

Sharma said that foreign capital is now accumulating in a few countries that are at the forefront of AI. Among developed economies, this capital is going to the US and Japan, while among emerging economies, South Korea and Taiwan are ahead in this field. He said, "I never imagined that I would see a day when TSMC, a Taiwanese company, would be ranked higher than India in the MSCI index." He said that the hype surrounding AI will subside after some time. It cannot continue unabated. The entire global economy cannot be driven by just one factor.