AI Impact on Your Portfolio
How rapid AI growth affects the Indian economy, IT services sector, and what it means for your investment strategy.
Global AI Spending (2026)
$2 Trillion
Infrastructure + Software + Models
India IT Sector GDP Share
~10%
5 million direct employees
FPI Outflow (2025)
$17.5 Bn
Highest on record
The Core Concern
AI is disrupting India's IT services model
Indian IT's "man-day billing" model — charging clients for bodies on projects — faces existential pressure as AI automates contract reviews, compliance, coding, and customer support. This has secondary effects on urban consumer spending, real estate, and the broader Indian economy.
IMF (Apr 2025): AI could boost global GDP by 1.3% to 4% over the next decade. But the gains are deeply uneven — advanced economies could see 2x the benefit compared to low-income countries. The US alone could see a 5.6% GDP boost.
WTO (Sep 2025): AI could increase global trade by 34-37% by 2040 and global GDP by 12-13%.
For India specifically: EY estimates AI can add ₹30-37 Lakh Crore ($359-438B) to GDP by 2029-30. The government projects AI contributing $1.7 Trillion to India's economy by 2035.
The catch: India's Economic Survey 2025-26 warns that India must build its own AI solutions rather than relying on foreign companies, or risk remaining just a consumer of Western and Chinese AI.
This is educational analysis based on research from IMF, WTO, Stanford, McKinsey, BlackRock, and Cambridge Associates. Not financial advice. Consult a SEBI-registered advisor before making investment decisions. Markets involve risk.