AI is changing the global economy, but are Indian investors positioned to participate in that growth?

Recently, global capital has been flooding into artificial intelligence. From a buzzword to a boardroom discussion topic and subsequent enterprise integration, AI has now matured into an investment opportunity.

Millions in investments have been flowing into companies developing advanced chips, and those building cloud infrastructure, or data power hubs-the ecosystem is thriving as the next serious investment opportunity.

While this opportunity is unfolding globally, the significant question for Indian investors is: are domestic technology stocks enough to participate in the global AI opportunity?


Some of the biggest companies driving this transformation are in the US, Taiwan and South Korea. Their operations spread across semiconductors, cloud computing, data infrastructure and software. And for Indian investors to become a part of this transformation and latch on to the opportunity, getting access to the ecosystem becomes imperative.

The broader AI picture

Investing in AI isn't simply about buying shares of well-known technology companies. The ecosystem also includes companies not among the tech giants and still making a significant impact. These companies spread across chip designers, semiconductor manufacturers, cloud providers, and software businesses, each offering different opportunities and, obviously, risks as well.

The spike in AI stock prices has come along with a concern for investors: at this valuation, will these stocks deliver profits, or will they hit the ceiling and come tumbling down? How does the investor proceed then?

How can the Indian Investor start?

Indian residents have three broad routes to explore international markets:

• International mutual funds and fund of funds: Invest in overseas markets through rupee-based mutual fund investments.
• GIFT City funds: Access international equities through investment structures operating in GIFT City.
• Direct investing through LRS: Use the Liberalised Remittance Scheme to remit funds abroad and invest in eligible global stocks and ETFs, subject to applicable regulations.

Each route comes with different costs, taxation, currency conversion implications and compliance requirements. Choosing the right one depends on financial goals, existing investments and risk appetite.

Understand the opportunity before making your move

Knowing where global opportunities lie is one thing. Understanding how to access them, build a diversified portfolio and manage the associated risks is another.

Neil Borate, Co-founder and Editor-in-Chief of The Fynprint, brings along over a decade of experience in global markets. His previous editorial roles at Mint and Value Research add to his insights on the subject matter. At the Economic Times' International Investing Masterclass, a free, three-hour online session, Borate will explain: international investment routes, ETFs and the practical aspects of investing beyond India. The masterclass has been designed to help participants understand global opportunities and make more informed portfolio decisions.

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