as As the subject of artificial intelligence (AI) dominates global headlines and US tech giants invest billions of dollars in the sector, many Indian investors are gripped by familiar fears. “Are we missing the AI bus?”
This year's AI boom has benefited global markets from the US to China to Hong Kong. Indian investors are suffering as the exposure of Indian IT companies to AI remains low. Jefferies' Christopher Wood even called the country's stocks “reverse trading in AI.” This essentially means that India could outperform if the global AI bubble bursts.
However, Deepak Shenoy, founder and CEO of Capitalmind, has a completely different view. He believes that “AI as a theme is not lost on India.” Indeed, India's apparent lateness to the AI race could emerge as a strategic advantage.
Lessons from the dot-com era
Shenoy drew parallels with the dot-com boom of the late 1990s, in which India was not an early participant. meanwhile Silicon Valley poured in capital on a scale unimaginable in the Indian market at the time, and India quietly built capacity.
“Even during the dot-com boom, we were very late to the party. But guess what? Today, we have one of the largest e-commerce markets in the world. It's been 25 years since then and we have evolved through this,” Shenoy said, insisting that not being part of the boom did not really hinder India's wealth creation.
Shenoy passionately believes that AI will emerge here a little differently and a little later.
Lakshmi Mittal's Handbook
Shenoy uses a powerful analogy to explain India's potential role in AI. “We are the Lakshmi Mittal of the AI industry.”
just the same Lakshmi Mittal built a global steel empire by acquiring distressed assets at rock-bottom prices during the recession, but India could benefit from the inevitable AI collapse.
Shenoy said that AI will be a big topic in India, and that some Indian companies will be taking advantage of it. “It could happen in three to five years, we don't know! But we'll have to wait until there's a bubble in the US.”
Even if some AI companies go out of business, their technology, products, and intellectual property won't disappear; they will simply become cheaper. Indian companies can take advantage of this.
“We may not be able to spend $200 billion, but if the technology is available for $20 billion, we will buy it when no one else in the world wants it,” Shenoy said, adding, “We are the Lakshmi Mittal of the AI industry.”
He argued that India will pick assets from AI companies that are likely to go bankrupt and that the strategy is wiser than taking losses now.
AI has emerged as a major theme this year. Mangificent Seven's stock price and market cap have soared thanks to its focus on the AI boom. Nvidia has emerged to the forefront of this rally. The company's market capitalization exceeded $5 trillion this year, making it the first company to achieve this feat.
OECD Secretary-General Matthias Cormann said the surge in investment in artificial intelligence that has supported global growth will continue and bring long-term benefits.
Shenoy expects AI to remain a key capability in 2026, but believes 2026 is too short a time frame. “This whole thing might take four or five years to evolve.”
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or brokerages and not of Mint. Because market conditions change rapidly and circumstances may differ, investors are advised to consult a certified professional before making any investment decisions.
