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Analysis · Professional & Local Services

India lags in AI race, report says

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Date
Company
Sabiduria Capital
What it does
Investment advisory firm
Kind
Analysis
Sector
Professional & Local Services

What they do

Sabiduria Capital is an investment advisory firm led by founder and CEO Rishab Khandelwal

What happened

A Stanford report shows US private AI investments hit $285.9 billion in 2025, 23 times China's $12.4 billion, while Indian IT firms focus on productivity gains

Why it matters

Foreign investors sold a record $12.58 billion of Indian equities in March 2026, and Indian IT companies are seen as late to building meaningful AI…

The details

  • A Stanford University report says private AI investments in the US reached $285.9 billion in 2025, which is 23 times China's $12.4 billion.
  • US-based AI companies captured about 79% of global AI funding in 2025.
  • Foreign portfolio investors (FPIs) sold a record $12.58 billion of Indian equities in March 2026, with net selling across 21 of 23 sectors.
  • FPI equity holdings in India fell from about $930 billion in September 2024 to $660 billion in March 2026, a decline of roughly 29%.
  • US exchange-traded funds (ETFs) saw $112.9 billion in net inflows in March 2026, with equity ETFs taking in $56.7 billion.
  • Indian IT firms use AI mainly for productivity, cost optimisation, and margin protection, while US tech firms build new product categories and AI-linked revenue streams.
  • Large Indian IT firms prefer buybacks and incremental capability acquisitions over aggressive AI investments.
  • Emerging AI-adjacent opportunities in India include data centres, semiconductor-linked manufacturing, and precision engineering.

The bigger picture

  • The report highlights a widening gap between US and Indian AI investment and innovation.
  • Record FPI outflows from India coincide with a global shift of capital toward US AI companies.
  • Indian IT firms are seen as service-led and late to building meaningful AI intellectual property, according to investment advisor Uddeshya Goel.
  • India's advantage lies in domain-specific, context-rich applications such as healthcare diagnostics and multilingual AI, says Kae Capital's Abhishek Srivastava.

About the business

  • Sabiduria Capital is an investment advisory firm.
  • Rishab Khandelwal is the founder and CEO of Sabiduria Capital.
  • The firm provides investment advice, with Khandelwal commenting on market trends.
  • The company operates in the Indian financial services sector.

Founders

  • Rishab Khandelwal, Founder and CEO

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