A report by the United Nations (UN) points out that India and China were the sole developing countries to have significant private investments in Artificial Intelligence (AI) in 2023, with India being ranked tenth in this sector.
The 2025 Technology and Innovation Report, which is produced by the UN Trade and Development (UNCTAD), also highlights India's advancement on the Readiness for Frontier Technologies index. It stood at 36th in 2024, a dramatic advance from its position of 48th in 2022.
As per the report, India is ranked 36 out of 170 countries in being prepared for sophisticated technologies, having an improving trend from the last year. The index considers numerous aspects, ranging from ICT deployment, levels of skills, research and development activities, industrial abilities, and accessibility of finances.
Further breaking down the rankings, India ranked 99th in ICT deployment, 113th in skills, 3rd in R&D, 10th in industrial capacity, and 70th in access to finance. Bhutan, India, Morocco, the Republic of Moldova, and Timor-Leste were also noted in the report as having improved in human capital with an increase in years of schooling and a greater share of high-skilled employment in their workforce.
AI Investment and Scientific Strength
The report indicates that China, Germany, India, the UK, and the US have become world leaders in scientific research related to AI.
The US leads AI private investment with a contribution of $67 billion in 2023, representing 70% of world AI financing. China took the second position with $7.8 billion, while India was tenth at $1.4 billion. AI is set to become a $4.8 trillion industry by 2033 and be a central component of digital transformation.
In spite of the quick growth of AI, exposure to AI infrastructure and knowledge is still focused among a few economies. An amazing 40% of global R&D expenditures by corporate firms come from only 100 firms, which are mainly US- and China-based. Further, AI growth is predicted to affect 40% of occupations across the globe, with the potential to enhance productivity while at the same time triggering alarm regarding job loss due to automation.
The Socioeconomic Impact of AI
AI-driven automation tends to benefit capital over labor, which could widen income inequality and diminish the competitive advantage of low-cost labor in developing countries. However, the report emphasizes that AI is not solely about job replacement—it can also generate new industries and empower workers. To harness AI’s potential for employment growth, investment in reskilling, upskilling, and workforce adaptation is crucial.
Among developing nations, Brazil, China, India, and the Philippines have shown outstanding technological readiness. The report highlights that though higher per capita GDP tends to be associated with higher readiness for frontier technologies, some countries—such as India—perform beyond expectations considering their income levels.
Global AI Development Landscape
Developed countries lead the UNCTAD Frontier Technologies Readiness Index, but some emerging economies like Singapore, China, and India have made solid positions.
As far as cloud infrastructure services go, the United States and China are ahead, offering more services than the remainder of the globe put together. India and Brazil, though, are the sole two developing countries in this category along with Singapore.
India also has one of the biggest collections of developers, only behind the United States in GitHub developer contribution. According to the report, China and India with their sheer populations have immense AI developer talent, which makes them the players to watch when it comes to AI innovation and research.
India has a talent pool of about 13 million developers, with Brazil ranking next at 4 million. The two nations are actively working on Generative AI (GenAI) projects on GitHub and progressing in AI developments.
India's AI Policy and Government Initiatives
Part of the success in India's progress in AI comes from robust policy support and co-operation among the government, private industry, and academia. These institutions include Indian Institute of Technology (IIT) Hyderabad, IIT Kharagpur, and Kotak Indian Institute of Science Artificial Intelligence–Machine Learning Centre that have contributed to AI research.
In 2024, the government of India endorsed the India AI Mission with an objective to build AI innovation, lower barriers of entry, and increase AI studies in higher education, especially in smaller cities. The mission hopes to make AI more inclusive and accessible across domains.
Specialization in Emerging Technologies
The report emphasizes how each country is different in terms of the technological arena in which they specialize. For example:
- Germany is a world leader in wind energy
- India is a leader in nanotechnology.
- Japan rules the electric vehicles.
- South Korea is a leader in 5G technology.
The Place of Manufacturing in Economic Development
Industrialization continues to be the major driver of economic advancement, promoting expansion in several sectors while creating massive job opportunities. The report identifies Brazil, China, and India as successful examples of developing countries where manufacturing has helped alleviate poverty and spur economic development.
Read also| UPI Transactions Surge 42%, Mobile Payments Hit 88.5 Billion in H2 2024
Read also| Goldman Sachs Forecasts Strong Growth for BSE Amid SEBI’s Index Options Market Reforms
