New Delhi:
Finance Minister Nirmala Sitharaman has pushed back against claims that India lacks a meaningful artificial intelligence (AI) strategy, saying such views reflect the perspective of only some fund managers and not the broader global investment community.
Speaking to media, Sitharaman said global funds use different benchmarks when evaluating emerging markets, and opinions on India’s AI positioning vary widely. She noted that while some investors may be skeptical, others remain highly optimistic about India’s prospects.
“It is probably their own assessment, and they perhaps deal with their funds with these factors before them,” she said, referring to fund managers who question India’s AI readiness. However, she added that several major investors hold a different view. “There are equally big fund managers and people like JP Morgan whose global head comes to India and who would say probably not what they have said. They would say India is the place to be.”
Addressing the criticism that India lacks a strong AI play, Sitharaman said the premise itself is flawed. She argued that AI development differs across countries and must be tailored to local needs. “I am not convinced about that because AI for every country has its own little calibration over and above the AI which is globally required,” she said, adding that India’s biggest strength lies in its human capital.
The finance minister highlighted India’s efforts to build AI skills across education levels, including students coming out of colleges and even higher secondary institutions. “We have the manpower which is absolutely at a high end. We are trying to give that kind of exposure to AI even for the young fellows who come out of the college or from higher secondary,” she said.
She also claimed India is among the leading countries preparing its workforce for AI adoption, second only to China in scale. “Probably excluding China, I am not sure if there is any country which is gearing up its manpower to be adept at AI as we are doing,” she said, noting that global employers consistently seek Indian AI talent across different skill levels.
Sitharaman acknowledged that global public markets have recently been skewed by heavy US investments in AI infrastructure such as data centers and semiconductor chips, which have attracted massive capital flows. “A lot of the flows have been in that direction,” she said, adding that this trend does not undermine India’s macroeconomic fundamentals. She pointed out that India continues to maintain strong economic indicators that had attracted funds over the past two years.
She further said geopolitical factors and concerns about technology being “weaponized” also influence investment decisions, but stressed that India continues to engage with major global investors. “Countries like Canada, their pension funds, countries like Norway, their sovereign wealth funds and so many others have been in touch with me,” she said, questioning why such funds would remain interested if India lacked AI potential.
Summing up her position, Sitharaman said different funds operate with different considerations, but returns ultimately drive investment decisions. “The larger consideration is the return on your investment. India does give it, and that is why many of them booked their profit and went out,” she said.