India is carving its niche in the global AI landscape, securing the 10th spot in the UN Technology and Innovation Report 2025. With $1.4 billion in private AI investments in 2023, India stands out as one of only two developing nations in the top ranks, alongside China, which attracted $7.8 billion.
Released by the United Nations Conference on Trade and Development (UNCTAD), the report underscores India’s steady rise in high-tech domains. While the U.S. leads with $67 billion in private AI funding (70% of the global share), India’s inclusion in the top 10 showcases its growing influence in technology.
India’s progress extends beyond investment. In the ‘Readiness for Frontier Technologies Index,’ which measures countries’ preparedness for cutting-edge tech, India advanced from 48th in 2022 to 36th in 2025. Strong areas include R&D (3rd globally) and industrial capacity (10th). However, challenges remain in ICT access (99th), workforce skills (113th), and financial accessibility (70th).
The report highlights India’s robust AI research output, placing it among global leaders like the U.S., U.K., China, and Germany. Notably, countries like Bhutan, Morocco, and India showed progress in human capital development through increased schooling and high-skill employment.
Experts view these advancements as a reflection of India’s ambition to emerge as a tech-driven economy. To unlock its full potential, India must strengthen digital infrastructure and cultivate a skilled workforce, ensuring its competitiveness in the rapidly evolving AI sector.