Technology
CEA says growth above 7% may draw capital after AI
Business Standard··3d ago
Chief Economic Advisor V Anantha Nageswaran said the absence of an AI focus in Indian equities could become a strength within a year. Speaking at an SBI-Amundi seminar on Thursday, he said investors may return if the AI boom falters. He listed India growth above 7 percent and low corporate leverage as supports. He named US ties as a headwind.
Prism
What It Means For You
- Nageswaran framed India's missing AI equity trade as a possible later advantage, not a present gain.
- He said capital seeking non-AI growth could look to India's other fundamentals.
- He linked recent foreign selling and rupee pressure partly to that AI gap.
What's Happening
- The remarks came at the SBI-Amundi India Investor Seminar, Business Standard reported.
- He called AI a borrowing story that could shake off and redirect capital.
- He listed four exogenous headwinds affecting flows and the currency.
What He Counted as Strengths
- India has posted over 7 percent growth through recent shocks, he said.
- Other supports he cited include a well capitalised banking system and domestic savings moving into markets.
- He said those fundamentals look healthier than the exchange rate alone suggests.
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