
India has minimal direct exposure to the global Artificial Intelligence (AI) investment boom, unlike the US, China, Taiwan, and South Korea, which have seen significant venture capital and foreign investment in AI startups. This under-indexing is cited as a factor in sustained foreign portfolio investor (FPI) outflows from India. Despite this, domestic investors, particularly through mutual funds and systematic investment plans, have absorbed FPI selling, helping to stabilize Indian markets. The global AI investment landscape is described as a self-reinforcing loop.