INDIA RISKS FALLING BEHIND IN GLOBAL AI RACE

The Challenge India's traditional strength in IT services and software outsourcing is becoming a liability in the AI era. Investors are redirecting focus to countries leading hardware innovation and computational infrastructure—areas where India has limited presence. Low research and development spending compounds the problem. The nation invests far less in R&D than competitors building proprietary AI models and chip technology. The Upside Shama identifies offsetting factors. India's strong nominal GDP growth provides a foundation for future AI adoption. A valuation reset could create entry opportunities for investors and companies. Moreover, the productivity phase of AI adoption—where efficiency gains matter most—may favor India's large workforce and service-oriented economy. Current positioning as an AI laggard could shift as the technology matures beyond infrastructure buildout. The Window India's challenge is timing. Missing the current infrastructure-focused phase risks deepening the gap, but positioned correctly, the nation could capitalize on AI's next wave of implementation.