NEW DELHI: India’s manufacturers of optical fibre and other digital infrastructure components are emerging as beneficiaries of the global artificial intelligence (AI) investment boom, with exports of optical fibres, fibre bundles and cables surging 158% year-on-year to $483 million in April-August of 2026-27. The export market for digital equipment is expanding at scorching pace as countries race to build data centres and strengthen digital connectivity.
The sharp increase in exports of these goods highlights how the rapid expansion of AI infrastructure is creating opportunities for Indian industrial sectors supplying the essential components that underpin the digital economy. While semiconductors and servers have attracted much attention, demand is also rising for the optical fibre networks needed to connect data centres, transmit enormous volumes of data and support high-speed communications.
The United States accounted for more than half of India’s optical fibre exports during the five-month period, importing products worth $266.7 million, according to data by the Ministry of Commerce and Industry. China was the second-largest destination at $52.4 million, followed by Poland at $22.8 million and Vietnam at $22.6 million. Japan, Canada and Italy were other significant markets, while shipments also reached the UK, Germany, Brazil, Morocco, Malaysia, the UAE and Mexico.
The strong AI related demand is positioning India as an important supplier in the global communications value chain, the ministry said.
The export surge comes against the backdrop of an AI-driven investment cycle that is helping sustain global merchandise trade despite the disruption caused by the West Asia conflict.
India’s optical fibre export performance illustrates how the investment boom is generating opportunities beyond the most visible parts of the AI supply chain. The construction of hyperscale data centres, expansion of broadband networks and deployment of 5G and fibre-to-the-home connections require extensive optical fibre infrastructure, creating demand for manufacturers of cables and related connectivity products, the ministry said.
The US concentration in India’s export basket also points to the importance of the American digital infrastructure buildout for domestic manufacturers. At the same time, shipments to markets across Europe, Asia, North America, the Middle East and Latin America suggest that Indian suppliers are tapping into a wider global expansion of communications infrastructure.
The trend offers an opportunity for India to strengthen its position in the global digital infrastructure supply chain. The broader opportunity is to capture a larger share of the physical infrastructure supporting the AI economy, rather than relying only on software and digital services.
Source: The Financial Express
