Global AI Valuation Correction Could Benefit India: RBI Governor

RBI Governor Sanjay Malhotra stated that a correction in global AI stock valuations could encourage international capital to seek opportunities in markets like India.

Malhotra noted that while Indian share markets adjusted downward from recent highs, the pullback remained controlled and smooth amid solid macroeconomic fundamentals.

He identified five key risk areas including stretched AI valuations, public debt, shadow banking leverage, private credit expansion, and cyber risks.