India should join AI play, not ride anti-AI wave: Citi’s Raghavan | Economy & Policy News

“While it may benefit India in the short term through foreign portfolio and direct investment inflows, I do not want India to be seen as part of an anti-AI wave,” he said in an interview with Business Standard. “I want India to be very much part of the AI ecosystem. AI is real, ignoring it is at your peril. It will transform economies, companies, the way we work and the way we consume.” 

Raghavan oversees New York-headquartered Citi’s corporate, commercial and investment banking operations across nearly 100 markets, while helping shape the bank’s global strategy and key initiatives. 

He sees opportunities for Indian firm to expand overseas via mergers and acquisitions, particularly in Europe, where valuations have weakened. “Some excellent companies are trading at relatively attractive valuations, presenting an opportunity for Indian businesses to acquire established global brands and capabilities,” he said. Indian firms are well placed to pursue acquisitions, backed by healthy balance sheets and domestic markets. 

On attracting foreign portfolio investors (FPIs), Raghavan argued India should strengthen its investment proposition. “Investors do not commit capital simply because the tax regime is favourable. It is the overall investment proposition that matters,” he said.

He noted that India’s initial public offering (IPO) pipeline was robust: Seven to eight offerings, each potentially worth $1 billion or more, have received mandates. Five to six more firms could receive mandates, with most transactions likely in 2027 and some spilling into 2028. 

India’s $50-billion annual capital-market activity could sustain momentum next year through IPOs, secondary offerings and block deals, provided valuations remain reasonable, he projected. 

Citi has around 13 per cent market share in such transactions in India, Raghavan said, and expected its investment banking business in the country to grow over the next five years.