Is India ready to turn its AI talent into a real growth story? Expert weighs in

As a global artificial intelligence (AI) summit begins in New Delhi, market experts say India is entering an important phase in its AI journey. Sharmila Joshi, a market expert believes the country has the skills to grow in this space, but it must move quickly to strengthen its foundations.

Joshi said India’s biggest strength is its deep talent pool. “It goes without saying that we have the talent pool and it's just a matter of time as to how we will play this to our advantage,” she said, pointing out that recent budget measures aim to improve infrastructure such as data centres.

At the same time, Joshi warned that AI is changing the way traditional IT companies operate. “The danger is at your doorstep, and now you have to address it,” Joshi said, adding that investors should closely track how IT firms adjust their business models over the next few quarters. She is cautious on IT stocks in the near term, suggesting the sector needs time to adapt.

On the broader market, Joshi said attention is turning back to company earnings and fundamentals. “The market is now ready to get on with it and look at stocks from an investment point of view,” she noted. She sees steel, FMCG and banking as key sectors to watch, helped by rising domestic steel prices and improving consumer demand.

(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)