India's growing artificial intelligence (AI) industry could contribute an additional $50 billion to $100 billion to the country's listed market capitalisation over the next two to five years, according to Goldman Sachs.
As per a Business Standard report, the investment bank expects a potential wave of initial public offerings (IPOs) from private AI companies to drive this expansion.
It estimates that 25% to 50% of nearly 70 mid-to-late-stage AI businesses could list during this period, potentially securing valuations averaging four times their current estimated worth.
In an Oct 19 research note, Goldman Sachs Asia-Pacific equity strategist Timothy Moe said these listings could expand India's publicly traded AI sector by introducing previously underrepresented businesses.
Private AI Funding Surges As India Gains Global Recognition
According to Goldman Sachs, private equity funding for Indian AI startups has tripled since 2024.
AI's share of overall private equity investment has also quadrupled, reaching approximately 20% of capital deployed in India.
Citing Stanford University's 2026 AI Index Report, the brokerage noted that India ranks among the world's six leading destinations for private AI funding and the top four for newly funded AI businesses.
Goldman Sachs identified 84 private companies as potential AI market contenders, with a combined estimated valuation of $55 billion.
These businesses have attracted nearly 40% of India's AI-related private capital raised since 2025.
AI Infrastructure Companies Could Dominate Future IPOs
Upstream AI infrastructure providers represent the largest segment by valuation, collectively worth approximately $35 billion.
These companies operate across power generation, semiconductor supply chains, chip design, datacentres, cloud computing, quantum technology and data management.
Goldman Sachs expects this category to account for 66% of potential AI-related listings.
Downstream AI adopters comprise 42 companies valued at approximately $18 billion, representing 31% of the projected opportunity.
Their applications span healthcare, financial services, robotics, cybersecurity, defence, enterprise software and digital commerce.
Meanwhile, the midstream category includes seven businesses developing foundational AI models, training systems and operational technologies.
These companies have a combined estimated value of $2 billion and represent 3% of potential listings.
The projected IPO pipeline highlights opportunities for India's capital markets to gain broader exposure to AI infrastructure, development and commercial applications.
