India is well-positioned to emerge at the forefront of global artificial intelligence adoption, backed by rapid digitalisation and a sophisticated financial-market ecosystem.
Ben Powell, Chief Investment Strategist for the Middle East and APAC at the BlackRock Investment Institute, highlighted India’s strong potential during the Jio BlackRock AMC’s Market Outlook 2026.
Powell noted that BlackRock continues to maintain a positive outlook on AI as a long-term investment theme, underpinned by strong fundamentals and broadening global opportunities.
Speaking at the event, Powell remarked that India has made substantial progress in developing world-class digital infrastructure.
As AI becomes increasingly integrated into households, corporates and sovereign services, he argued that India stands to benefit meaningfully from this structural shift.
“There is no reason why India cannot be at the forefront of AI adoption, driving productivity gains at the macro level and earnings growth at the micro level,” he said.
In a separate interaction with CNBC TV18, he added that India may evolve more as an adopter of AI technologies rather than a core supplier, but could still emerge as a major AI success story.
Indian Equities Outlook for 2026
Powell believes Indian equities could outperform in 2026, noting that India’s limited direct exposure to AI manufacturing could prove beneficial by providing genuine diversification.
He also observed that India’s underperformance relative to emerging markets—despite reaching a 30-year extreme in 2025—remains comparatively modest.
In an interview with Moneycontrol, Powell reaffirmed BlackRock’s overweight stance on AI, emphasising that the investment case is rooted in solid financial performance rather than speculative hype.
He dismissed comparisons to the dot-com bubble, asserting that today’s AI-linked enterprises possess strong revenues, cash flow and earnings.
“These are real companies making remarkable amounts of money,” he said, adding that BlackRock expects earnings strength across AI-related sectors to continue into 2026.
Growing Global Opportunities in AI
While US mega-tech firms remain central to the AI narrative, Powell stressed that opportunities have expanded significantly across regions, particularly in Asia.
He noted that countries in the region are investing heavily in AI infrastructure, talent development and data capabilities, creating fresh prospects for investors.
Powell also highlighted infrastructure as an essential yet often overlooked pillar of the AI ecosystem.
Data-centre construction, power generation and raw materials are becoming vital to support global AI expansion.
He identified copper as an increasingly important indirect play on AI, driven by soaring electricity consumption from high-performance computing and data centres.
“When we say we are overweight on the AI theme, it certainly includes US equities, but also a diversified set of opportunities across the entire AI ecosystem,” he said. “This remains our number one call.”
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