India is gearing up for a big jump in capital spending, with data centers leading the charge.
Neeraj Kumar from Citi India says we could see external commercial borrowings hit $65 billion to $70 billion in FY27, thanks to rising investments in data centers, AI, and power.
While India's data center scene is still catching up to places like the US and Asia, it's quickly grabbing attention from major investors.
Firms increase renewable and semiconductor spending
Private companies are also ramping up spending in renewable energy and semiconductor manufacturing.
With high hedging costs, they are weighing both dollar and rupee loans.
When it comes to AI, Kumar points out that India is focusing more on building data center and application layers, taking a page from its earlier IT success stories rather than reinventing the wheel with new models.