AI opportunity: Hope to see an emerging Indian company among top ten global firms in next 10 years, says Aswath Damodaran
Aswath Damodaran, Professor, Stern School of Business, NYU, says AI is set to be a key frontier for emerging companies. If this sector grows significantly, it raises the question of whether the top five companies will remain US-based. It would be encouraging to see at least one Indian company among these leaders. Damodaran thinks Europe may struggle to produce a major player. Indian firms have a unique opportunity now, especially since China has restricted its major tech players like Tencent, JD, and Alibaba, limiting their potential to invest in AI. This creates a chance for India to capitalize on the situation, but it will require significant effort. If a prominent Indian tech company appears among the top ten global firms by market capitalization in the next decade, it would be an exciting development.
You have said Indian IT companies, the traditional ones, are like old US manufacturing companies, which is they are good, but they are mature and they are past their prime. But given that everything is now getting directly impacted or affected by AI, do you think Indian IT companies can get their mojo back provided they implement the AI business correctly?
Aswath Damodaran: I am talking about the large Indian tech companies. The large Indian tech companies had their roots in outsourcing and they were built up being support companies for US companies that wanted to outsource a lot of the stuff. So, look at TCS, HCL, Infosys or Wipro, and you basically are looking at companies that were built around that and there
