![\"There\u2019s](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/09\/There-s-no-doubt-that-India-will-increasingly-spen_1758789938735.jpg\" "\\"There\u2019s")
There\u2019s no doubt that India will increasingly spend more on AI. (Representational image) <\/p>\nHow much of the BSE\u2019s market capitalisation can be attributed to Artificial Intelligence (AI)? Less than 1%, says Dr. Vikas Singh, adjunct professor at the Indian Institute of Public Administration, Delhi. To be sure, there isn\u2019t a formal classification of an \u201cAI sector\u201d in the Bombay Stock Exchange (BSE) or National Stock Exchange (NSE), and fewer than 15 listed companies have identifiable AI practices or revenue segments. Since these segments aren\u2019t always disaggregated in financial statements, it makes it difficult to estimate AI\u2019s direct contribution to their revenue or profits.<\/p>\n
There\u2019s no doubt that India will increasingly spend more on AI. (Representational image) <\/p>\n
While \u201c AI contribution is less visible,\u201d it is \u201c potentially more systemic \u2014 especially in automation-heavy sectors such as finance, retail logistics, and telecom,\u201d said Dr. Singh. There\u2019s no doubt that India will increasingly spend more on AI. According to the 2025 Technology and Innovation Report issued by the UN Trade and Development (UNCTAD), India ranked 36th out of 170 nations on a global index that measures a country\u2019s readiness for frontier technologies, with approx. $1.4 billion of private investment in AI, which is an improvement from last year. That position is not very different from the country\u2019s rank in the Global Innovation Index, which is now at 38th (in 2025), up from 48th in 2020.<\/p>\n
Speaking at the Startup Conclave and Exhibition 2025 in Gandhinagar (Gujarat) on September 23, Union Home Minister Amit Shah said: \u201cWithin the next three years, India will rank among the top ten countries in the Global Innovation Index and, in the coming years, [India] will lead global innovation.\u201d That\u2019s imperative if India wants to grow its economy, explains Siddharth Sureka, the chief AI officer of Motilal Oswal Financial Services Ltd. \u201cAI is already widely adopted in the Western markets, specifically in the United States. With our quest of becoming the 3rd largest economy in the world, we\u2019ll have to be adopting AI sooner than later.\u201d<\/p>\n
Companies are busy understanding how they can use AI, he added. \u201cVisions and strategies for enabling AI are being formulated in the top organisations, like the ones in the NIFTY 100. It\u2019ll take 2-3 years for the implementation of AI and for realising significant impact in the organisations.\u201d Every company will adopt AI, Sureka said, first for \u201cdriving productivity,\u201d and then for \u201cleveraging it for generating revenue and growth.\u201d<\/p>\n
But it won\u2019t happen without proper support, Dr. Singh pointed out. Three things, according to him, are important for AI development: geographic concentration, regulatory support, and capital flow. \u201cWithout these, AI development is likely to remain confined to narrow applications.\u201d Inadequate coordination between research institutions, startups, and large firms is the chief reason that hinders AI development today in India.<\/p>\n
And \u201cwhile partnerships with global AI leaders can accelerate AI development in India, this may cause reliance on foreign infrastructure and frameworks, raising concerns about technological dependence and data sovereignty,\u201d Dr. Singh added. The answer could be parallel \u201cindigenous capability-building\u201d and \u201cregulatory frameworks,\u201d according to him.<\/p>\n
These findings raise an important question: do businesses and markets in India approach up-and-coming AI businesses with caution, or are they readily invested in AI? \u201cIn the Indian stock market, AI is largely seen as an opportunity that comes with compliance, ethical, and competitive risks,\u201d said Vijayakumar Vellaiyan, founder and CEO of Zebu Share and Wealth Management\u202fPvt\u202fLtd, a stock broking firm. For his business itself, \u201c it\u2019s an opportunity in the areas of customer experience, data analytics, and algorith<\/p>\n","protected":false},"excerpt":{"rendered":"How much of the BSE\u2019s market capitalisation can be attributed to Artificial Intelligence (AI)? Less than 1%, says…\n","protected":false},"author":2,"featured_media":450039,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3091],"tags":[323,151421,78971,51,117251,2441,78972,977,16,15],"class_list":{"0":"post-450038","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-ai","9":"tag-ai-in-indian-markets","10":"tag-bse","11":"tag-business","12":"tag-indian-markets","13":"tag-markets","14":"tag-nse","15":"tag-stock-market","16":"tag-uk","17":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115264184913762578","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/450038","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=450038"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/450038\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/450039"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=450038"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=450038"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=450038"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}