India Secures 10th Spot with $1.4 Billion Private AI Investment: UN Report

India has made significant strides in the global artificial intelligence (AI) landscape, securing the 10th position for private investment in AI with a total of $1.4 billion, as highlighted in a recent report by the United Nations. This achievement places India among the only two developing nations—alongside China—to appear in the top ten for AI investment in 2023.

A Major Step Forward for India

The 2025 Technology and Innovation Report, published by UN Trade and Development, underscores India’s growing presence in the AI sector. Despite being a developing nation, India has attracted a remarkable amount of private funding in AI technologies, proving that its digital ambitions are firmly on track.

This private investment milestone reflects the increasing confidence of investors in India’s AI capabilities and innovation potential. The report states that the AI market is expected to reach a global value of $4.8 trillion by 2033, making this early positioning extremely strategic for India.

Rising on the Readiness Index

Along with its investment ranking, India has also moved up on the ‘Readiness for Frontier Technologies’ index. In 2024, India climbed to the 36th spot out of 170 nations, a leap from its 48th position in 2022. This index evaluates a country’s ability to adopt and benefit from technologies like AI, based on factors such as ICT (Information and Communication Technology) infrastructure, skills, research and development (R&D), industrial capacity, and access to finance.

India showed particularly strong performance in R&D (ranked 3rd) and industrial capacity (10th), reflecting its growing technical expertise and manufacturing strength. However, there is still room for improvement in areas like ICT deployment and skill development.

Building a Strong Talent Pool

According to the report, India is home to one of the largest developer communities in the world, with around 13 million developers. This large and growing talent base has enabled India to become a major contributor to AI research and development, including generative AI projects.

The country’s progress is not just due to private investment but also strategic policy efforts. Over the years, the government has worked closely with private players and academic institutions to promote AI innovation. Institutions like the Indian Institutes of Technology and dedicated AI centres of excellence have played a vital role in creating a thriving ecosystem for AI research and development.

Government Backing for AI

India’s forward-looking AI policies are helping build a more inclusive and innovation-driven ecosystem. The recent approval of the India AI Mission is one such example. This mission aims to expand AI education, encourage innovation in smaller cities, and reduce barriers to entry for aspiring AI professionals.

These initiatives have helped position India as a leader among developing countries in the AI race. The report also highlights that India, along with countries like China and Brazil, is outperforming expectations based on income levels, indicating a strong capacity to adapt and innovate.

Challenges Ahead

While India’s progress is commendable, the report also warns of challenges such as inequality and job displacement due to AI automation. The benefits of AI are often capital-intensive, which can reduce the advantage of low-cost labour in developing countries. To ensure inclusive growth, the report suggests that investments in upskilling and reskilling the workforce are crucial.

Moreover, the AI ecosystem remains largely concentrated in a few countries, with only 100 firms (mainly in the US and China) contributing to 40% of global R&D spending. Bridging this gap will require continued collaboration between governments, academia, and private sectors.

Conclusion

India’s 10th-place ranking in private AI investment reflects a promising future. The country’s large developer base, improving technological readiness, and focused government policies are enabling it to compete on the global stage. As AI continues to reshape the digital economy, India’s proactive steps today could turn into long-term advantages tomorrow.

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