Canadian billionaire Prem Watsa has said India is likely to become a more prominent destination for global capital as investors chase opportunities in data centres and artificial intelligence in the United States and then look for the next major growth market. Speaking in a phone interview with Mohit Bhalla and Sruthijith KK, Watsa said the current wave of investment in the US is reshaping how global money is allocated, and India is positioned to benefit from that shift.
The remarks come at a significant moment for Fairfax Financial Holdings, the investment group Watsa founded and built into a financial conglomerate with more than $100 billion in assets. On Wednesday, the Indian government approved the divestment of a majority stake in IDBI Bank to Fairfax, a move that marks one of the most closely watched banking transactions in India's recent disinvestment programme. For Watsa, the deal is more than a financial acquisition; it is a vote of confidence in India's long-term economic prospects.
Capital Follows Growth
Watsa's central argument is that global capital is increasingly being drawn toward sectors with scale, infrastructure intensity and long-duration demand. In the United States, that means data centres and AI-related investment. But as those opportunities mature and competition intensifies, investors will search for other large, underpenetrated markets where growth can compound over time. India, in his view, fits that profile.
That perspective is especially relevant for India's financial sector, where bank ownership, credit expansion and digital adoption are all converging. A majority stake in IDBI Bank gives Fairfax exposure to a lender with national reach and a role in a banking system that remains central to India's economic expansion. The transaction also reflects the government's continued push to unlock value from state-linked assets and bring in strategic investors with long-term capital.
Watsa's comments carry weight because they come from an investor whose career has been defined by patience, contrarian judgment and a willingness to back complex markets. Born near Hyderabad and educated at IIT-Madras, he moved to Canada in the 1970s and later founded Fairfax as an insurance company. Over time, he transformed it into a diversified financial platform known for opportunistic investments across geographies and cycles.
A Long India Thesis
His renewed emphasis on India is consistent with a long-standing thesis that the country's economic scale, entrepreneurial depth and institutional evolution will continue to attract foreign capital. Unlike short-term trades that depend on market sentiment, Fairfax's approach has typically focused on durable franchises and structural growth. The IDBI Bank investment fits that pattern.
India's banking sector is entering a phase in which balance-sheet strength, governance and digital distribution matter more than ever. As the economy expands, credit demand is expected to rise across retail, housing, infrastructure and small business lending. That creates room for strategic investors who can bring capital, discipline and operational experience.
At the same time, Watsa's comments point to a broader global reallocation of capital. The AI and data centre buildout in the US has become one of the defining investment themes of the decade, absorbing vast sums of money from technology firms, infrastructure funds and institutional investors. Yet such concentration can also prompt diversification into markets where growth is less crowded and valuations are more attractive. India, with its large domestic market and accelerating digitisation, is increasingly part of that conversation.
Strategic Signal For India
The approval of Fairfax's IDBI Bank stake purchase is therefore significant beyond the banking sector. It signals that India remains open to large foreign strategic investors at a time when global capital is highly selective. It also reinforces the idea that India's financial system is not merely a domestic story but part of a wider contest for capital in an era defined by technology-led infrastructure spending.
For Watsa, the deal also reflects personal continuity. A businessman with Indian roots is returning, through one of his most important investments, to a market that shaped his early life and education. His confidence in India is not based on sentiment alone, but on a view that the country's economic momentum is durable and increasingly difficult for global investors to ignore.
As capital continues to pour into AI and data centres in the US, Watsa believes India will move higher on the shortlist of global investors seeking the next major growth opportunity. The IDBI Bank transaction suggests he is prepared to put that thesis into action.