AI Sovereignty Is Now an Economics Problem, Top Indian Economists Argue

sanjaykalra · x · 2026-08-12

V. Anantha Nageswaran (India's Chief Economic Advisor) and Debjani Ghosh (President of Nasscom) argue that the global AI contest has shifted from building the best models to controlling compute, chips, and supply chains.

Using South Korea as a cautionary tale, they note that the Kospi plummeted by a third over doubts about AI ROI, only to surge a record 17.9% in a single day after US cloud giants reaffirmed spending. Because Samsung and SK Hynix dominate memory chip manufacturing, the index has effectively become a proxy for the AI cycle itself.

The authors stress that AI has crossed a threshold to become a foundational economic force and geopolitical imperative. For India, they advise against seeking total self-sufficiency or relying on a single superpower patron; instead, the nation must strategically identify which dependencies are acceptable and which pose critical risks.

Related event: Indian Experts Redefine AI Sovereignty as a Core Economic Issue(2 posts)→

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