- Despite AI boom, foreign investors are not taking interest in India.
- The Indian IT sector was not innovative but based on arbitrage.
- Investment capital is going to countries like America, Japan, South Korea, Taiwan.
- This noise of AI will subside soon, then India will get attention.
AI Boom And India: These days, AI is being discussed all over the world. Many companies are raising a lot of money in this wave and their valuations are breaking records. But the impact of this wave of AI is not being seen on India and investors are avoiding investing money here. Ruchir Sharma, Chairman of Rockefeller International and Chief Investment Officer of Breakout Capital, has given the reason for this. He said that today the entire world’s focus is on India, but foreign investors are not ready to invest money in India. Let us know what reasons he has given regarding this.
Why is India not benefiting?
Talking to Indian Express, Sharma compared the AI boom to the dot com bubble and said that Indian companies had benefited a lot at that time due to business models like arbitrage, but this time India does not have such a big opportunity. Sharma said that he has never seen such a thing in his 30 years of career, when investors are not interested in India and it is being ignored. He said that India’s IT sector was only in arbitrage business and was not doing anything innovative. The effect of this is that now we do not have anything like this and this is the reason why foreign investors are not coming to India and India is not being seen as a big player in the sector of AI. When the AI bubble bursts, then hopefully India will start getting some attention again.
Money accumulated with only a few countries and companies
Sharma said that now foreign capital is accumulating in only a few countries, which are at the forefront in AI. If we talk about developed economies, this capital is going to America and Japan, whereas in emerging economies, South Korea and Taiwan are ahead in this matter. He said that I never thought that I would see a day when TSMC, a Taiwanese company, would be ranked above the whole of India in the MSCI index. He said that the hue and cry about AI will subside after some time. This cannot continue continuously. It is not the case that the entire global economy runs on only one factor.
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