India seen emerging as an 'AI powerhouse': top stocks that will benefit

While India has long been celebrated as a “global software hub”, critics often point to its lack of domestic chip manufacturing and foundational AI models as evidence of being a “laggard” in the artificial intelligence arms race.

However, a new report from Macquarie suggests a dramatic narrative shift is underway.

Analysts at the firm argue India is now transitioning from an AI bystander to an “AI powerhouse that leverages its unique data sets and massive infrastructure build-out to underwrite a new era of growth.”

With over $400 billion flowing into data centres and energy infrastructure, Macquarie contends the “digital rails” are now firmly in place, positioning India as a nascent – not complacent – giant in the global tech landscape.

Here are the top three stocks it recommends owning to benefit from that narrative shift.

Reliance Industries: the infrastructure architect

Reliance Industries stock stands at the forefront of India’s AI revolution, powered by a staggering $110 billion commitment to AI infrastructure.

As the parent company of Jio, Reliance possesses the massive data pools necessary to train large-scale models tailored for the Indian market.

Macquarie views the conglomerate as a primary “picks-and-shovels” play, as it integrates AI across its vast retail, telecom, and energy ecosystems.

By developing “sovereign AI” capabilities and partnering with global firms like NVIDIA, Reliance is effectively building the computational backbone of the country.

This strategic alignment of capital and enterprise confirms that Reliance isn’t just participating in the AI boom but is actively defining its physical and digital architecture.

Bharti Airtel: powering the data surge

As India’s second-largest telecom operator, Bharti Airtel is a critical enabler of the connectivity required for high-speed AI workloads.

The company’s data centre business, Nxtra, recently secured over $700 million from global private equity firms, including Carlyle and Alpha Wave, highlighting the immense value of its physical footprint.

Macquarie highlights Bharti Airtel stock as a “top bet” because AI cannot function in a vacuum; it requires robust connectivity and localised data processing.

With the “digital rails” being laid down through 5G expansion and specialised edge computing, Bharti Airtel is perfectly positioned to capture the surge in data traffic.

Its role in providing essential “connectivity and cooling infrastructure” makes it an indispensable pillar of the evolving ecosystem.

Tata Consultancy Services: the software integrator

Tata Consultancy Services represents the sophisticated software layer of India’s AI ambitions.

While the physical infrastructure is being built by the likes of Reliance and Airtel, TCS is the very engine translating that raw power into enterprise-grade solutions.

The firm is pivoting from traditional IT services to becoming a leading integrator of “Agentic AI” and “Physical AI” for global clients.

Macquarie notes that the Indian AI ecosystem is “forming across talent, startups, and enabling infrastructure,” and TCS sits at the heart of this talent pool.

By upskilling hundreds of thousands of employees in generative AI, TCS ensures that India’s software legacy evolves into an AI-first future, maintaining its dominance as the world’s back-office-turned-innovation-hub.