CEA Nageswaran sees equity gains if AI hype cools
India's Chief Economic Adviser V Anantha Nageswaran thinks the country might actually benefit from not jumping headfirst into the global AI craze, at least when it comes to equity markets.
If the current AI hype cools off, he says India's solid economic basics (like a well capitalized banking system and a small current account deficit which is manageable) could make it more appealing to foreign investors.
He calls this a possible "second mover advantage," where India stands out by not being overly dependent on AI.
India's growth above 7% despite headwinds
Despite global ups and downs, India's economy has kept growing at over 7%, thanks to things like low corporate debt and more people investing their savings locally.
There are challenges, like rising oil prices and some tension with the US but Nageswaran is optimistic that these strong fundamentals will keep drawing in international investors, especially if they start looking beyond just AI-driven markets.