BlackRock’s Ben Powell Says India Could Be an AI Investment Hotspot

India could emerge as an important investment destination in the global artificial intelligence (AI) economy, even though it is not currently among the biggest beneficiaries of the AI infrastructure boom, according to Ben Powell, chief investment strategist for the Middle East and Asia-Pacific at BlackRock Investment Institute. He believes the country’s long-term opportunity lies in adopting AI across businesses and industries to improve productivity, rather than competing directly with established semiconductor and AI infrastructure markets.

Powell’s comments come as global investors reassess their exposure to AI-related stocks following volatility in US technology shares. In an interview with Moneycontrol published on November 2, he said BlackRock remains strategically overweight on Indian equities over a five-year-and-beyond horizon. However, the firm is more neutral on India in the near term and wants to see stronger corporate earnings before becoming more positive tactically.

India Could Benefit From the Next Phase of AI Growth

The global AI investment cycle has so far been concentrated around companies developing advanced chips, cloud computing infrastructure, data centres and large AI models. This has directed substantial investor money towards the United States and Asian economies such as South Korea and Taiwan, which have significant exposure to semiconductor manufacturing and hardware supply chains.

India has a different position in this market. It does not yet have the same scale of semiconductor manufacturing or AI infrastructure companies as some of these economies. However, Powell believes the next stage of AI growth could create opportunities for countries and businesses that successfully adopt the technology.

He said India could benefit as AI expands beyond the companies creating the technology to businesses and economies using it.

This distinction matters because AI adoption does not necessarily require every country to build its own advanced semiconductor industry or develop a foundation model. Companies can use existing AI tools to automate operations, improve customer service, analyse information and increase employee productivity.

For India, widespread adoption across banking, healthcare, manufacturing, retail, logistics and IT services could create economic value even without dominating the global AI hardware market.

BlackRock Maintains Long-Term Overweight Position on India

Powell said BlackRock’s positive long-term view of Indian equities is supported by several structural factors, including demographics, rising productivity, digitalisation and the expansion of domestic financial markets.

India’s large workforce provides a substantial base for economic activity, while the continued adoption of digital services can improve efficiency across industries. Improvements in technology and business processes could also help companies increase output without proportionately increasing operating costs.

BlackRock’s strategic allocation to India reflects this longer-term investment case. Powell said the firm maintains an above-benchmark allocation to Indian equities over a horizon of five years and beyond.

However, he also made an important distinction between long-term conviction and short-term market positioning.

The investment firm remains tactically neutral on India and wants to see stronger earnings performance. This means its long-term confidence in the country does not automatically translate into an aggressive near-term investment position.

Corporate earnings, valuations, energy prices and global capital flows will continue to influence how international investors allocate money to Indian markets.

Why the Global AI Investment Trade Is Facing Greater Scrutiny

Powell’s comments also come amid growing questions about whether the enormous spending on AI infrastructure will generate sufficient financial returns.

Major technology companies have committed substantial amounts of capital to data centres, advanced processors, networking equipment and computing infrastructure. Investors are increasingly examining whether this spending can translate into sustainable revenue, earnings and cash flow.

The concern became more visible after a sharp sell-off in US technology stocks on October 30. The Nasdaq 100 declined 3.5%, while the Nasdaq Composite fell 2.86%. Semiconductor stocks also came under pressure.

Powell said the latest earnings season has raised expectations for companies participating in the AI boom. Investors are no longer satisfied with announcements of large infrastructure investments alone. They increasingly want evidence that these investments can generate sustainable earnings and cash.

He described the current environment as one requiring selectivity rather than simply buying every market decline.

This does not mean BlackRock has abandoned its positive view of AI. Instead, the firm believes investors need to distinguish between companies with credible monetisation opportunities and businesses whose valuations depend heavily on future expectations.

India Offers Diversification From the Concentrated AI Trade

India’s relatively limited exposure to the biggest global AI hardware companies can also make it a source of diversification for international investors.

During an earlier conversation with NDTV Profit on October 28, Powell described India as a useful diversifier in an AI-driven global economy. He argued that global investors had become heavily focused on the AI theme, with capital flowing towards markets that have direct exposure to the technology boom.

India’s investment story is different. Its economic growth is supported by domestic consumption, financial services, infrastructure, digitalisation and a large workforce.

This does not mean India is completely insulated from AI-related market movements. Global risk appetite, technology valuations and foreign investment flows can still influence Indian equities. However, the country’s broader economic drivers offer investors exposure beyond the most concentrated parts of the global AI trade.

The opportunity could become more significant if AI adoption begins to improve productivity across Indian companies.

Domestic Savings Could Help Fund India’s Growth

Powell also identified the mobilisation of household savings as an important challenge for India’s long-term economic development.

In his October 28 interview with NDTV Profit, he said India could see trillions of dollars in household assets flow into financial markets over the next decade.

According to Powell, the country has a substantial pool of savings, but channeling more of that money into productive financial assets will be important for funding future growth.

A deeper domestic capital market could help companies access funding for expansion, infrastructure and technology investment. It could also reduce the economy’s dependence on foreign capital at a time when international investment flows are affected by geopolitical tensions and changing global market preferences.

The expansion of household participation in equities, bonds and other financial instruments could therefore become an important part of India’s investment story.

Foreign Investors Are Reassessing Their India Exposure

The changing global investment environment is already influencing foreign portfolio investor activity.

According to The Economic Times, foreign portfolio investors purchased nearly $1.2 billion worth of Indian equities in the secondary market over the 10 trading sessions between October 16 and October 30, 2026.

The buying followed a prolonged period of selling pressure. Investors had been concerned about elevated oil prices, geopolitical uncertainty, currency weakness and the concentration of global investment flows in AI-related markets.

However, the recent purchases should not automatically be interpreted as a broad-based return of long-term foreign investment. Market participants have also suggested that some of the buying may reflect short-term positioning as investors reconsider exposure to technology stocks.

BlackRock’s position similarly combines long-term confidence with near-term caution. The firm remains strategically overweight on India, but Powell has said stronger earnings are needed to support a more positive tactical outlook.

The Bigger Picture

The AI investment opportunity is gradually expanding beyond the companies building chips, data centres and foundation models. As businesses begin integrating AI into everyday operations, countries with large workforces, established digital infrastructure and significant domestic markets could benefit from productivity improvements.

India has several characteristics that could support this next phase. Its large services sector, expanding digital economy and growing financial markets provide opportunities for AI adoption across multiple industries. However, turning that potential into measurable economic gains will depend on investment, skills, infrastructure and successful implementation by businesses.

Looking Ahead

For investors, the important question is whether Indian companies can translate AI adoption into stronger productivity and earnings growth. Improvements in operational efficiency, customer services, financial analysis and industrial processes could create opportunities across sectors, but the benefits will not necessarily appear at the same pace for every company.

Powell’s assessment suggests that India’s AI opportunity should be viewed through a longer-term lens rather than measured only by its current share of global AI infrastructure spending. BlackRock’s strategic overweight position reflects confidence in India’s broader growth story, while its tactical neutrality highlights the need for stronger earnings and greater clarity before making a more aggressive near-term allocation.