Indias AI Boom Could Boost Stock Market Valuations by $100 Billion, Report Says
Indias AI ecosystem may increase stock valuations by $50-$100 billion in the next few years, driven by upcoming IPOs.
New Delhi, October 21 (Daily Kiran) : India’s rapidly expanding artificial intelligence (AI) ecosystem is projected to elevate the valuations of listed companies by $50 to $100 billion over the next two to three years. This surge is attributed to a wave of AI startups preparing to enter the stock market, according to a recent report.
Goldman Sachs indicates that 25 to 50 percent of approximately 70 mid- to late-stage private AI firms in India may launch initial public offerings (IPOs) soon. These companies could be listed at valuations averaging nearly four times their current estimated worth.
Timothy Mo, co-head of Asia Macro Research at Goldman Sachs, noted that these listings could broaden the scope of publicly traded AI companies in India. This expansion would allow parts of the AI value chain that have previously been underrepresented to gain visibility in public markets.
Since 2024, private equity funding for Indian AI startups has tripled. Additionally, the share of AI in total private equity investments has quadrupled, now accounting for nearly one-fifth of all private capital invested in the country.
The report highlights that India ranks among the top six countries globally for private AI funding and is one of the top four nations for AI companies securing new funding. A total of 84 private firms have been identified as “private AI contenders,” with an estimated combined value of $55 billion.
According to the report, approximately 40 percent of total private funding related to AI in India since 2025 has been directed towards these companies, which are involved in various segments of the AI value chain.
The greatest opportunity lies within “upstream AI enablers,” which are valued at around $35 billion. This segment includes companies operating in power generation and transmission, semiconductor supply chains, chip design, quantum computing, data centers, cloud services, and data management.
Goldman Sachs estimates that nearly two-thirds, or 66 percent, of the potential total value from future listings of AI-related companies may come from these upstream AI enablers.
