India Secures 10th Spot Globally for AI Investment, Says UN Report

India and China stand out as the only developing countries with notable private investments in Artificial Intelligence (AI) during 2023, according to the United Nations' 2025 Technology and Innovation Report by UNCTAD. India ranked 10th globally, attracting $1.4 billion in private AI investments.

Improved Readiness for Frontier Technologies

India has shown significant progress in technology preparedness, climbing to 36th place out of 170 nations in the 2024 Readiness for Frontier Technologies Index—an improvement from 48th in 2022. The index evaluates a nation’s performance based on ICT deployment, R&D activity, industrial capacity, access to finance, and skills.

Mixed Rankings Across Key Tech Readiness Parameters

In the detailed breakdown, India ranks:

• 99th in ICT readiness

• 113th in skill levels

• 3rd in research and development activity

• 10th in industrial capacity

• 70th in financial access

This indicates India's strength in research and industrial capacity, while skills and digital infrastructure remain areas for improvement.

India's Growing Role in Global AI Landscape

Alongside countries like the US, UK, China, and Germany, India is now recognized as a scientific contributor to the field of AI. The report highlights that India and China’s vast developer populations provide a strategic advantage in AI development, despite relatively low individual developer ratios.

Private Sector Leading Global AI Investment

The United States continues to lead AI investments, accounting for $67 billion—70% of global AI private funding. China follows with $7.8 billion, while India ranks 10th with $1.4 billion, placing it among the top contributors globally and the only other developing country besides China with significant funding in the sector.

Cloud Infrastructure and GitHub Activity Reflect India’s Strength

India is one of the few developing nations with substantial cloud infrastructure. It also boasts the second-largest number of GitHub developers worldwide, following the US. The report notes around 13 million developers in India, contributing heavily to generative AI projects and innovations.

Strong Policy Support Driving AI Growth in India

India’s government has taken proactive steps to promote AI, fostering collaboration between academia, industry, and policymakers. Prestigious institutions like IIT Hyderabad, IIT Kharagpur, and specialized centres like the Kotak Indian Institute of Science AI–ML Centre are leading initiatives in this space.

The 2024 Cabinet-approved India AI Mission aims to strengthen the AI ecosystem by:

• Increasing AI course availability in tertiary education

• Encouraging participation from smaller cities

• Reducing entry barriers into AI programs

Developing Nations Catching Up Through Focused Efforts

Brazil, China, the Philippines, and India are identified as developing countries outperforming their expected positions based on income levels. The report emphasizes the role of national policies in helping countries like India close the gap in advanced technology readiness.

Sector Specializations and Innovation Highlights

The report notes that countries have developed specializations in specific technologies. India, for instance, has shown a comparative advantage in nanotechnology, while Germany leads in wind energy, Japan in electric vehicles, and South Korea in 5G.

AI’s Economic Impact and Future Outlook

AI is forecast to reach a $4.8 trillion market valuation by 2033. However, the UN cautions that benefits may be unevenly distributed, as AI-driven automation could displace jobs and increase inequality. To counter this, the report stresses the importance of:

• Reskilling and upskilling workforces

• Promoting inclusive access to AI infrastructure

• Supporting small and medium enterprises in technology adoption

Industrialization as a Pathway to Growth

The report concludes by highlighting how industrialization and tech advancement in nations like India have contributed to reducing poverty and boosting economic growth. It underscores the importance of manufacturing in stimulating jobs and technological development in emerging economies.