Ruchir Sharma said foreign investors view India as lagging or a loser in the global artificial intelligence race [1, 2].
This perception threatens India's ability to attract high-tech capital and maintain competitiveness as AI reshapes the global economy. If the country is seen as an "anti-AI play," it may miss critical windows for infrastructure development and technological leadership [4, 5].
Sharma, the chairman of Rockefeller International and founder of Breakout Capital, detailed these concerns during an interview with Bloomberg Television and at an Express Adda event in India [1, 2]. He said the global investment community views the country as failing to keep pace due to a systemic lack of core AI infrastructure [2, 3].
According to Sharma, the primary deficits include a lack of high-performance compute and essential hardware, such as semiconductors [2]. He said these gaps, combined with low research and development spending, have left the country without a compelling position in the ecosystem [3, 4].
"India is a loser in the AI race," Sharma said [3].
He said the current AI wave has bypassed the country's capabilities, leaving it poorly positioned to capitalize on the trend [3]. The skepticism from investors is rooted in the belief that India lacks the foundational tools necessary to support a robust AI economy [4, 5].
"Investors see India as an anti-AI play due to its lack of AI infrastructure and low R&D spending," Sharma said [3].
Sharma said the combination of on-ground business challenges and a lack of specialized hardware makes the investment landscape unattractive for those seeking AI growth [4, 5]. He said the AI wave has left the country without a compelling positioning in the ecosystem [3].
“India is a loser in the AI race.”
The gap between India's software services strength and its hardware deficiencies creates a strategic vulnerability. While India has a massive talent pool for AI implementation, the lack of domestic semiconductor production and high-performance computing power means the country remains dependent on foreign technology. This dependency creates a perception of risk for global investors who prioritize ownership of the 'compute' layer of the AI stack over the application layer.
