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India: The AI Diversification Haven?
4 Dec, 2025
Summary
- India's AI gap offers global investors diversification from AI-heavy markets.
- BlackRock's Ben Powell believes India could attract capital seeking stability.
- India's strength lies in AI adoption, not production, unlike other hubs.
BlackRock's Ben Powell identifies India as a prime destination for global investors seeking diversification in 2026. He suggests that India's current detachment from the AI supply chain, unlike tech-focused nations like Taiwan or South Korea, could be a significant advantage.
Powell emphasizes that while India may not lead in AI hardware or models, its sophisticated digital infrastructure and strong AI adoption capabilities position it attractively. This makes it a compelling option for investors looking to hedge against the concentration risks found in AI-dominated US markets.
Despite a relative underperformance in 2025, Powell anticipates Indian equities could outperform in 2026. He believes that once global uncertainties subside and a key catalyst emerges, India's structural strengths will attract significant capital seeking stability and genuine diversification.
