India's AI sector lacks scale for IPOs, says Piyush Goyal
What's the story
India's Commerce Minister, Piyush Goyal, has said that the country's artificial intelligence (AI) sector is not yet at a stage where it can support stock market listings. He made the statement during a media event on Friday. Goyal attributed the slowdown in foreign portfolio inflows to the attractiveness of technology stocks in developed markets like South Korea, Taiwan, and Japan.
Market analysis
Goyal explains reasons for foreign portfolio inflow slowdown
Goyal pointed out that nine out of the 10 largest companies in the US are tech giants.
He said this trend is also seen in other developed markets such as South Korea, Taiwan, and Japan.
The minister explained that these factors have contributed to India's foreign portfolio inflow slowdown as investors are more interested in these markets.
Investment insights
Investors waiting for rupee stabilization, says Goyal
On the topic of foreign direct investment (FDI), Goyal said investors may have been waiting for the rupee to stabilize.
The currency has been trading between 94 and 96 against the dollar for four to five months.
He also said free trade agreements (FTAs) are expected to draw more investments into manufacturing by providing suppliers with greater certainty, as most inflows have gone into services and banking so far.
Global reach
Goyal praises decline in net FDI figures
Goyal praised the decline in net FDI figures, citing Inox's acquisition of the largest solar manufacturing company in the US and plans for India's first steel plant in the US in 66 years as proof that "India is going global."
He also addressed trade negotiations with Washington, saying India and the US have finalized their broad understanding. Now, they're working on legal details to ensure Indian exporters get the competitive advantage agreed upon in February.