India is Losing Investors Fast Amid Global AI Boom
Global investors are shifting capital from India toward AI-infrastructure-heavy markets like Taiwan and South Korea, impacting Indian equities and IT services.Summary
Foreign investors are rapidly withdrawing capital from India as the global focus shifts toward AI infrastructure. India’s weight in the MSCI Emerging Markets index has declined significantly, with an estimated $21 billion in net outflows from Indian equities so far in 2026. This capital is largely migrating to markets like Taiwan and South Korea, where companies like TSMC and Samsung are directly benefiting from the AI buildout.
Simultaneously, India’s vital IT services sector, including giants like Tata Consultancy Services and Infosys, is facing pressure from generative AI advancements that automate traditional coding and back-office tasks. While Indian authorities are attempting to bolster the sector through semiconductor and AI initiatives, the market is currently grappling with the structural impact of these global technological shifts and the emergence of hybrid crypto-equity benchmarks that prioritize AI-linked assets.
(Source：BeInCrypto)