Summary:
In 2023, India drew in Rs. 11,943 crore (US$ 1.4 billion) in private investments focused on artificial intelligence, securing the 10th spot worldwide and standing out as one of only two major developing countries, alongside China, to reach this level of AI funding. Reflecting progress in tech readiness, India climbed from 48th in 2022 to 36th in 2024 on the UNCTAD Readiness for Frontier Technologies Index, evaluated across 170 countries. Despite strong advances in research and development, where it ranked third, India faces uphill challenges in areas such as ICT infrastructure (99th), skill development (113th) and financial accessibility (70th), though it holds 10th place in industrial capabilities. At the global level, AI investment remains heavily dominated by the United States, which attracted Rs. 5,71,577 crore (US$ 67 billion), followed by China’s Rs. 66,541 crore (US$ 7.8 billion). By 2033, AI is expected to contribute an estimated Rs. 4,09,48,800 crore (US$ 4.8 trillion) to the global economy, yet automation could displace nearly 40 percent of the current workforce, sparking concern over employment stability.
With a developer base of 13 million individuals, India ranks as the second-largest contributor to GitHub activity after the United States, reflecting a deep bench of tech talent. Fuelled by the India AI Mission and the rise of dedicated research centres at IITs, innovation in AI continues to gain ground across the nation. However, 40 percent of corporate AI research and development expenditure globally is dominated by just 100 companies, predominantly from the United States and China raising red flags about monopolisation and limited global equity in AI leadership. As AI begins to erode the traditional cost advantages of low-wage nations, India must pre-empt widening inequality by embracing inclusive innovation strategies. While India leads in nanotech development, Germany is shaping the future of wind power, Japan commands the electric vehicle landscape and South Korea is setting benchmarks in fifth-generation wireless communications. To retain and expand its edge in frontier technologies, India must prioritise investment in research and development, build stronger digital infrastructure and equip its workforce with skills fit for an AIdriven future.
Source: IBEF
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