India and the AI Wave: Where We Stand and What Comes Next

India is not yet at the centre of the global AI investment boom. While global money is flowing into the US, Taiwan, and South Korea, India’s listed IT majors remain focused on stable service delivery rather than breakthrough AI innovation. Yet India isn’t “behind”—just differently positioned. Our current strength is AI adoption at scale. Once AI tools mature, Indian IT companies are among the best in the world at deploying them across global enterprises. This “late but large” advantage could become a major earnings catalyst over the next few years. Real AI innovation in India is happening inside startups—building copilots, AI agents, automation platforms, and vertical AI solutions. But most remain unlisted, keeping institutional investors on the sidelines. India needs stronger R&D incentives, deeper university–industry links, and leadership that pushes for IP creation rather than only service delivery. Two listed Indian players actively pushing AI:

– Building enterprise-grade AI platforms like TCS Cognix and deploying generative AI in BFSI, retail, and manufacturing to automate workflows at scale. – Scaling its Infosys Topaz AI suite to help clients integrate generative AI into operations, customer service, software development, and cloud modernization. Is AI a bubble? Some global valuations, especially in chips and frontier-model companies, look stretched. A correction is possible—but unlike past bubbles, AI is already delivering productivity gains. The bigger risk for India isn’t the bubble; it’s missing the innovation curve. India’s next decade will reward companies that build AI, not just integrate it.