Why does BlackRock's Ben Powell believe India is attractive to global investors in 2026?

Powell believes India's position outside the AI supply chain offers crucial diversification away from concentrated AI-heavy markets, attracting capital seeking stability.

How does India compare to other AI hubs like Taiwan and South Korea according to Ben Powell?

Powell notes India is not yet a super-boom AI producer like Taiwan or South Korea, but excels in AI adoption and has sophisticated digital infrastructure.

Will Indian equities outperform in 2026, according to BlackRock?

Yes, Ben Powell anticipates Indian equities could be an outperformer in 2026, especially once global uncertainties resolve and a catalyst emerges.

Home / Business and Economy / India: The AI Diversification Haven?

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.