Since the advent of artificial intelligence (AI), the world has shifted its focus towards it and begun incorporating this powerful technology across various fields. While AI has seen immense growth globally, its limited development in India has recently been seen as a major disadvantage for the world’s sixth-largest economy.

Indian author Ruchir Sharma, head of international business at Rockefeller Capital Management, has referred to India as a “loser in the AI race.”

On April 28, 2026, Sharma told Anant Goenka, executive director of The Indian Express, that India is currently missing out in the AI race. While describing the current AI trend among investors as a temporary boom, he discussed the top priorities in emerging markets.

He drew comparisons with the 1990s, stating that Indian companies benefited during that period but are now missing strong opportunities in AI. He added that this lack of focus on AI has reduced foreign investors’ interest in Indian markets.

Sharma stated that people believed and accepted that India’s IT sector made its profits through arbitrage rather than real innovation. “But today, that is coming back to haunt us a bit, because we don’t have any of that. So, the reason foreign investment is not coming into India today is that the entire focus is on AI,” he said.

He further added that, in financial circles, India is seen as “anti-AI,” but there is a possibility that investors may return if the AI bubble bursts in the near future.

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Ruchir Sharma has authored several books, such as What Went Wrong with Capitalism (2024) and Democracy on the Road (2019). He is the founder of the investment firm Breakout Capital and has served as the head of Rockefeller Capital Management. 

While AI is not picking up pace in a country like India, Ruchir Sharma added that global investment has been cornered by a few countries. These countries have focused on AI for a significant period of time, such as the United States of America and Japan. Meanwhile, countries like Taiwan and South Korea are emerging as key markets for AI.

According to Sharma, the weight of Taiwan Semiconductor Manufacturing Company (TSMC) in the MSCI Index exceeds that of India. The MSCI All Country World Index tracks stock market performance across the world. “Their weight in the most popular index that everyone uses, the MSCI index, is greater than that of all of India put together,” said Sharma.

According to several reports, India witnessed an inflow of around $106 million after weeks of consistent outflows by foreign investors. Sharma’s statement comes amid reports that India lost about $5 billion following weeks of outflows.

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