India poised for stronger growth as investor pressures ease, AI opportunity widens – Firstpost

India’s economic outlook could strengthen in the coming years as foreign investor selling pressures ease and the country prepares to capture productivity gains from artificial intelligence adoption, according to investment firm Lighthouse Canton.

The firm believes India is likely past the peak phase of capital outflows, improving the outlook for domestic markets after a period of pressure from global uncertainty, higher interest rates and shifting investor allocations.

Foreign investors had reduced exposure to several emerging markets amid concerns over expensive valuations, global monetary tightening and stronger returns in other regions. However, stabilising macroeconomic conditions and India’s long-term growth potential could help revive investor interest.

Beyond financial flows, Lighthouse Canton highlighted artificial intelligence as a key structural opportunity for India.

While some investors view India’s slower AI adoption compared with advanced economies as a challenge, the firm believes the gap could actually work in India’s favour by creating significant room for productivity improvement.

As businesses increasingly integrate AI tools into operations, sectors such as technology services, manufacturing, finance, healthcare and consumer industries could benefit from efficiency gains.

India’s large digital ecosystem, expanding startup base and skilled technology workforce provide a strong foundation for wider AI adoption. The country is already positioning itself as a major player in the global AI economy, supported by growing investments in digital infrastructure and innovation.

The outlook comes at a time when global investors are reassessing emerging market opportunities amid expectations of changing interest rate cycles and shifting supply chains.

India has remained one of the fastest-growing major economies, supported by strong domestic demand, infrastructure spending and expanding digital capabilities.

While risks remain from global volatility, geopolitical uncertainty and market valuations, easing investor pressures combined with the next phase of technology adoption could support India’s medium-term growth story.

For investors, the combination of stabilising capital flows and AI-driven productivity potential may strengthen India’s position among major emerging markets.