Blitz Bureau
NEW DELHI: India is expected to remain among the world’s fastest‑growing major economies despite geopolitical tensions, uncertainty around artificial intelligence (AI) spending and sustained foreign investor outflows, Seth R. Freeman, Senior Managing Director at GlassRatner Advisory & Capital Group, has said.
Among Indian market sectors, Freeman remains constructive on healthcare and automobiles, as being well positioned for long-term growth, the report from NDTV Profit said.
Freeman said recent underperformance in Indian equities should be seen against the backdrop of extraordinary global developments rather than a deterioration in India’s economic fundamentals.
“There is a lot of volatility caused by the war and AI‑related investments are soaking up global liquidity,” he said, adding that India continues to achieve high growth and that trajectory will be sustained.
He noted that domestic investors have cushioned the impact of foreign institutional investor (FII) outflows this year and predicted that overseas capital would return once valuations become sufficiently attractive.
Freeman believes that periodical flare ups will occur related to the United States‑Iran conflict, and investors should not expect a quick resolution. Supply disruptions linked to the conflict could reduce the availability of fertilisers, potentially driving food prices higher globally, he noted.
He also mentioned artificial intelligence as a major theme reshaping global capital flows, and massive investments being made in AI infrastructure, data centres and semiconductor manufacturing.
Freeman, however, cautioned that returns on those investments could take several years to materialise. He also dismissed concerns that the recent correction in semiconductor stocks reflects a structural downturn, the report said.
