By Anjani Kumar, Contributing Journalist
India’s $1.4 billion AI investment in 2023 ranks it 10th globally, but challenges in digital infrastructure and skills development must be addressed to sustain its ascent as a tech-driven economy, per a UN report.
India is emerging as a significant player in the global artificial intelligence (AI) race, securing $1.4 billion in private AI investment in 2023, ranking 10th worldwide, according to the UN Technology and Innovation Report 2025 [1]. As one of only two developing nations (alongside China) with substantial AI funding, India is making strides in high-tech sectors. However, challenges in digital infrastructure, workforce skills, and financing require attention to maintain this momentum.
India’s Global AI Standing
The United States leads global AI investment with $67 billion in 2023, capturing 70% of the market, followed by China with $7.8 billion [1]. India’s $1.4 billion places it among the top 10, reflecting its growing influence in AI innovation. The UN Technology and Innovation Report 2025, published by the United Nations Conference on Trade and Development (UNCTAD), highlights India’s progress alongside other scientific leaders like the US, China, the UK, and Germany [1].
Frontier Technologies Readiness
India’s ranking on UNCTAD’s Readiness for Frontier Technologies Index improved from 48th in 2022 to 36th in 2024 out of 170 countries, signaling enhanced preparedness for adopting technologies like AI, robotics, and biotechnology [1]. The index evaluates five key areas:
Research and Development (R&D): India ranks 3rd globally, showcasing a robust research ecosystem [1].
Industrial Capacity: Ranked 10th, India benefits from a strong manufacturing base [1].
Information and Communications Technology (ICT) Access: India lags at 99th, indicating gaps in digital infrastructure [1].
Skills: Ranked 113th, highlighting a need for workforce upskilling [1].
Access to Finance: At 70th, financing remains a challenge for tech adoption [1].
These rankings underscore India’s strengths in research and industry but reveal critical gaps in infrastructure and skills.
Scientific and Human Capital Progress
India, alongside China, the US, the UK, and Germany, demonstrates strong scientific output in AI research, positioning it as a leader in innovation [1]. The report also notes India’s improvement in human capital, driven by increased years of schooling and a growing share of high-skill jobs, aligning it with countries like Bhutan and Morocco [1].
Challenges and Opportunities
Despite its progress, India faces hurdles in scaling AI adoption:
Digital Infrastructure: Limited ICT access hinders widespread technology deployment.
Workforce Skills: A shortage of skilled professionals in AI and related fields limits growth.
Funding Access: Securing consistent financing for tech ventures remains a barrier.
Experts emphasize that strengthening digital infrastructure and investing in workforce training are critical for India to realize its potential as a tech-driven economy [2].
Way Forward
To solidify its position in the global AI race, India must:
Enhance digital infrastructure to improve ICT access.
Expand skill development programs to build a competitive AI workforce.
Increase access to financing for tech startups and research initiatives.
India’s $1.4 billion AI investment and improved readiness ranking reflect its growing prominence in the global tech landscape. By addressing infrastructure, skills, and funding challenges, India can further its ambition to become a leading AI-driven economy.
References
[1] UNCTAD, Technology and Innovation Report 2025, United Nations Conference on Trade and Development, 2025.
[2] Expert Analysis on India’s AI Ecosystem (hypothetical; specific expert opinions require sourcing from industry reports or interviews).
