Now Reading: South Korea, Taiwan attract AI capital as India sees outflows
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South Korea, Taiwan attract AI capital as India sees outflows
Global investors are favouring South Korea and Taiwan over India as the AI investment cycle reshapes capital flows. South Korea attracted $3.5 billion in foreign inflows, while Taiwan saw $1.8 billion, a…
The Story in Brief
Global investors are favouring South Korea and Taiwan over India as the AI investment cycle reshapes capital flows. South Korea attracted $3.5 billion in foreign inflows, while Taiwan saw $1.8 billion, a 23-week high. In contrast, India-focused long-only funds continued to face redemptions, though the pace of selling has moderated, according to Elara Securities.
NDTV Profit reports that many fund managers still see AI adoption powering India's capex and China+1 story, with infrastructure and manufacturing as themes. Since mid-June, India-focused funds have outperformed emerging-market peers by 10%, suggesting the tide may be turning, but the overall flow picture remains tilted towards East Asia for now.
The Indian Opinion
The China+1 narrative has been oversold as a sure bet for India, while the real AI capital is flooding into South Korea and Taiwan. Fund managers who talk up India's capex story ignore that foreign money is voting with its feet. The question investors should ask is simple: if the AI trade has become crowded and returns slow, will the exodus reverse, or is India's underperformance structural?
Sources (2): ndtvprofit.com, businesstoday.in
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
