India’s Quiet Climb
India scores high on the Global AI Vibrancy Tool released by Stanford University with a score of 21.5. This puts it ahead of South Korea, the UK, the United States (78.6), and China (36.9). The country has improved from seven in the last iteration.
Not Just A Safe Option
India saw foreign investment in equities of around ₹53,739 crore between 2 and 9 November, as the selloff in AI stocks globally sees money flow into areas with less exposure. India has been identified as one such area. But Anand Mahindra, Chairman of the Mahindra Group, said it’s only part of the story and that there may be an actual opportunity in India.
Mahindra admits that India does not have the best chips or leading foundational models but compares it to smartphones. The phone created the platform, but the apps unlocked the value. He believes that there is potential for the next phase of AI to come from applications, industry knowledge, and adoption across companies. This can be supported by the strong skill base of software engineers and the large domestic market. The 2026 AI Index by Stanford shows India had the highest net outflow of AI talent globally in 2025. To create growth, this will need to be retained.
