India Shows Progress in AI Readiness but Faces Gaps in Digital Infrastructure and Skills: UN Report India ranked 36th out of 170 nations on the 'Readiness for Frontier Technologies' index, marking a significant improvement from its 48th position in 2022
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India has made notable strides in its readiness for emerging technologies, according to the United Nations Conference on Trade and Development (UNCTAD)'s 2025 Technology and Innovation Report. The country ranked 36th out of 170 nations on the 'Readiness for Frontier Technologies' index, marking a significant improvement from its 48th position in 2022.
However, just 100 companies—mostly based in the United States and China—account for 40 per cent of all private AI research and development funding worldwide. Meanwhile, 118 countries, predominantly from the Global South, are reportedly absent from global AI governance discussions, raising alarms about widening technological gaps.
The index evaluates five key pillars: ICT deployment, skills, research and development (R&D), industrial capacity, and access to finance. India performed strongly in R&D, securing the 3rd position globally, and ranked 10th in terms of industrial capacity. However, it continues to lag in critical enablers such as ICT infrastructure (99th), skills (113th), and financial access (70th), highlighting the uneven progress in its digital ecosystem.
The report attributes India's human capital improvement to increased years of schooling and a rising share of high-skill employment within the workforce. Alongside India, countries like Bhutan, Morocco, the Republic of Moldova, and Timor-Leste also recorded gains in this area.
On the AI investment front, India emerged as the tenth largest contributor to private investment, with USD 1.4 billion in 2023. While this is significantly lower than the USD 67 billion invested by the United States or USD 7.8 billion by China, it places India among the few developing countries with a substantial stake in AI development.
UNCTAD also identifies India as one of the five countries—along with the United States, China, the United Kingdom, and Germany—demonstrating scientific strength in AI. This reinforces India's growing role in shaping global AI innovation, though the report cautions that addressing foundational gaps in skills and infrastructure will be critical to ensuring equitable and sustained growth in the sector.
