Uday Kotak Predicts AI Correction Could Boost India Investment

Uday Kotak, the billionaire founder of Kotak Mahindra Bank Ltd., stated that India could benefit from a reverse flow of foreign investment if the global artificial intelligence investment boom unwinds. Speaking in a virtual address ahead of the Diwali festival, Kotak argued that the leverage global companies are using to fund AI aspirations has led to significant overvaluation in many instances.

He suggested that as investors seek markets with more attractive valuations, India's ongoing efforts to build its own AI capabilities would position the country to capture these redirected capital flows. Kotak indicated that the country would benefit from this shift as it continues to develop its own domestic AI infrastructure.