India emerges as a top destination for investors seeking growth beyond AI

Investors are returning to India as strong domestic demand offers a stable alternative to AI markets. Robust growth and new trade deals boost its appeal.

Insights:
A shakeout in bets on artificial intelligence is prompting investors to consider India ININ due to its AI-insulated growth and domestic demand. This shift, which could reverse prior foreign outflows and affect capital flows and market valuations in India, has resulted in about $1.5 billion in net foreign purchases this month, potentially reversing a prior net $21 billion foreign outflow last year. The ongoing development matters because it links a change in global tech-investment sentiment to tangible capital inflows and relative market performance in a large national economy.
A man looks at a screen outside the Bombay Stock Exchange (BSE) building in Mumbai, India, February 2, 2026. REUTERS/Francis Mascarenhas
A man looks at a screen outside the Bombay Stock Exchange (BSE) building in Mumbai, India, February 2, 2026. REUTERS/Francis Mascarenhas
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