The global boom in artificial intelligence (AI) is emerging as one of the biggest drivers of economic growth, and according to the International Monetary Fund (IMF), Asian economies are among the biggest beneficiaries. However, while India is attracting increasing investment and interest in AI, experts say questions remain about how much of the global opportunity the country will ultimately capture.
Speaking at the IMF and World Bank annual meetings in Bangkok, IMF Managing Director Kristalina Georgieva said rising spending on AI infrastructure is helping sustain global economic growth at around 3 per cent, despite headwinds from geopolitical tensions and disruptions to energy supplies. Much of this growth is being driven by demand for the technology that powers AI, including data centres, semiconductors and advanced computing infrastructure.
Asian economies have emerged as major winners because many of them play a central role in global technology supply chains. Countries involved in the manufacturing of chips, servers and other key hardware have benefited from a surge in AI-related investment.
India, meanwhile, is trying to position itself as a major AI player. The country has seen increased private-sector investment, growing demand for AI-skilled workers and greater government focus on digital infrastructure. Technology companies are expanding AI research operations in India, while startups are increasingly incorporating AI into products and services.
However, analysts note that India still faces challenges. AI adoption across businesses remains relatively limited compared with some advanced economies, and India plays a smaller role in the global hardware supply chain than countries such as Taiwan, South Korea or China. This gap between ambition and implementation could limit the extent to which India benefits from the current AI investment wave.
Supporters argue that India’s strengths lie elsewhere. With its large technology workforce, expanding digital economy and growing startup ecosystem, India could become a major hub for AI applications and services rather than hardware manufacturing.
As governments and companies worldwide race to invest in AI, the key question for India is no longer whether it will participate in the AI revolution, but whether it can move quickly enough to secure a larger share of its economic rewards.