India overtaken as South Korea, Taiwan ride AI wave

Business Recorder

India overtaken as South Korea, Taiwan ride AI wave

BENGALURU: The Indian equity market’s sudden drop to seventh in the global market cap rankings has sent shudders through Dalal Street, with AI singled out as a decisive factor. But does blame lie solely with India’s lack of AI champions, or are there other factors behind the fall? That’s our main focus this week. AI is to blame, but not AI alone India’s equity market was overtaken by Taiwan and South Korea in quick succession, pushing what was once emerging Asia’s darling to seventh in the world by market capitalisation. It’s no secret what has powered the rallies in those East ⁠Asian markets, which are home to a host of companies that are critical to the AI supply chain, including TSMC, Samsung Electronics and SK Hynix. Last week, both countries received Goldman Sachs. India has been bypassed by the AI investment boom, with foreign investors instead pulling out almost $26.4 billion from local stocks so far in 2026, putting the country on course to far surpass the record $18.9 billion divestment of 2025.

Go to News Site

Google Play

App Store