Amazon and Microsoft AI Investments Put India at a Crossroads

Major technology companies Amazon and Microsoft have announced combined investments exceeding $50 billion in India, placing artificial intelligence firmly at the center of global attention on the country’s technology ambitions. Microsoft chief executive Satya Nadella revealed the company’s largest-ever investment in Asia, committing $17.5 billion to support infrastructure development, workforce skills, and what he described as India’s transition toward an AI-first economy. Shortly after, Amazon said it plans to invest more than $35 billion in India by 2030, with part of that funding expected to strengthen its artificial intelligence capabilities in the country. 

These announcements arrive at a time of heightened debate around artificial intelligence valuations globally. As concerns about a potential AI-driven market bubble have grown, some financial institutions have taken a contrarian view on India’s position. Analysts at Jefferies described Indian equities as a “reverse AI trade,” suggesting the market could outperform if global enthusiasm for AI weakens. HSBC has echoed similar views, arguing that Indian stocks offer diversification for investors wary of overheated technology markets elsewhere. This perspective has gained traction as Indian equities have underperformed regional peers over the past year, while foreign capital has flowed heavily into AI-centric companies in South Korea and Taiwan. 

Against this backdrop, the scale of Amazon and Microsoft’s commitments offers a significant boost to confidence. Ho

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