INDIA'S TECH SECTOR HITS RECORD LOW ON AI FEARS

India's technology sector is experiencing its sharpest decline in market dominance as investors flee over artificial intelligence-driven displacement risks. The country's software export industry, a cornerstone of India's economy and stock market performance, faces intensifying pressure. Artificial intelligence capabilities threaten to automate workflows traditionally handled by Indian tech workers, eroding the sector's competitive advantage. The prolonged selloff reflects deeper market concerns about structural shifts in global tech employment. Major Indian IT firms—traditionally pillars of the Nifty index—now face questions about long-term viability as corporations accelerate AI adoption. Analysts attribute the record-low valuations to investor reassessment of the sector's growth trajectory. The market downturn signals that the AI disruption narrative has moved beyond speculation into pricing reality. India's software export ecosystem, which generated substantial foreign currency and employment, now confronts a fundamental challenge to its business model as generative AI and automation capabilities expand.