India ranks 10th with Rs. 11,943 crore (US$ 1.4 billion) private investment in Artificial Intelligence (AI): United Nations (UN) report

India secured Rs. 11,943 crore (US$ 1.4 billion) in private artificial intelligence (AI) investment in 2023, ranking 10th globally. It remains one of the only two developing nations, alongside China, with significant AI funding. The country improved its position in the United Nations Conference on Trade and Development (UNCTAD) 'Readiness for Frontier Technologies' Index, moving from 48th in 2022 to 36th in 2024 among 170 nations. India ranked 99th in information and communication technology (ICT) deployment, 113th in skills, third in research and development (R&D) activity, 10th in industrial capacity, and 70th in financial access. The United States (US) led AI investments with Rs. 5,71,577 crore (US$ 67 billion), followed by China with Rs. 66,541 crore (US$ 7.8 billion). AI's economic impact is projected to reach Rs. 4,09,48,800 crore (US$ 4.8 trillion) by 2033. However, concerns remain over job displacement, with 40% of global jobs at risk of automation.

India has 13 million software developers, making it the second-largest pool globally after the United States (US) in GitHub activity. The India AI Mission, alongside AI research centres at the Indian Institute of Technology (IIT), is driving innovation. However, 100 global firms, mainly from the US and China, account for 40% of corporate AI R&D spending, leading to concentrated control. AI-driven automation could reduce the cost advantage of low-wage economies, increasing inequality. In emerging technologies, India excels in nanotechnology. At the same time, Germany leads in wind energy, Japan in electric vehicles (EVs), and South Korea in 5G wireless networks. India must prioritise R&D investment and workforce skill development in AI to sustain its position.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.