While access to the internet and smartphones is a given in many parts of the world, it is still a relatively recent development in India. This rapid connectivity expansion, especially in rural areas, is proving transformative. In the past decade, affordable internet and smartphone penetration have unlocked new markets and created millions of first-time internet users. Today, India’s digital ecosystem reaches billions, creating a robust foundation for internet-based business models to thrive.
At the same time, the adoption of AI in India is accelerating, and it’s clear that the country intends to play a leading role in shaping the future of this technology. Nvidia, a global leader in AI computing, is prioritizing India in its global strategy, further solidifying the country’s growing influence in the space.
Last week, Nvidia hosted an AI Summit in Mumbai, bringing together industry leaders across AI to further establish “a platform that enables developers to build for India and the world.” Most notable was a fireside chat between Nvidia CEO Jensen Huang and INQQ constituent Reliance Industries Chairman Mukesh Ambani. The two sat down to discuss the role of AI “in transforming industries and India's rise as a global AI leader.”
During the summit, Nvidia made a few significant announcements regarding AI initiatives in India:
From e-commerce to finance, healthcare to education, like the internet, AI-powered applications are transforming industries and creating new opportunities for innovation. With the support of tech giants like Nvidia, Indian internet companies are poised to leverage AI to enhance their services. Low-cost smartphones and data plans provided by companies like Reliance Jio are bringing 1 million new smartphone users online each week. As more and more Indians go online, there is no doubt that AI will become a package deal. This was made all but certain through Nvidia’s new Indian initiatives.
India’s vast population, rising middle class, and growing internet penetration rate offer a unique opportunity for both companies and investors alike. While many markets around the world are mature or, at points, over-saturated, India’s digital economy is still in a high-growth phase. Companies focused on e-commerce, digital payments, education technology, entertainment, and telehealth are seeing rapid growth, driven by India’s large and increasingly connected population.
We believe big tech’s interest in India will only continue to bubble, stemming further partnerships across the Indian Internet economy and continued digitization of the country. This should bode well for the growth of companies in the India Internet Index (INQQ) and expanding the size of the portfolio as more and more tech start-ups continue to go public. As India’s economy continues to digitize and adopt new technologies, Indian internet companies are set to become key players on the global stage.