AI Debt Bomb: Economic Survey Warns of Global Crisis Worse Than 2008
Budget
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Moneycontrol•29-01-2026, 13:31
AI Debt Bomb: Economic Survey Warns of Global Crisis Worse Than 2008
- •India's Economic Survey 2025-26 warns that a failure in highly leveraged AI infrastructure could trigger a global financial shock, potentially worse than the 2008 crisis.
- •The core risk is an 'AI debt bomb,' where global tech companies have shifted over $120 billion of data center spending off-balance sheet using SPVs funded by Wall Street, mirroring 2008 crisis opacity.
- •The Survey highlights that current AI infrastructure investments depend on optimistic execution, narrow customer concentration, and long-duration capital, creating a risky economic model.
- •Three global scenarios for 2026 are outlined, with a 10-20% chance of a severe crisis if financial stress from AI correction coincides with geopolitical escalation.
- •India is considered relatively better placed due to strong macroeconomic fundamentals, healthy domestic demand, and limited exposure to leveraged AI financing structures.
Why It Matters: Economic Survey warns of a potential 'AI debt bomb' leading to a global financial crisis worse than 2008.
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