India and China have emerged as the only developing nations with significant private investments in Artificial Intelligence (AI), according to the latest UNCTAD Frontier Technologies Readiness Index. The report highlights India’s progress in technology readiness and AI capabilities, placing it among the top countries globally. This is a crucial development, as AI is expected to have a transformative impact on global economies and job markets.
India’s Rise in the UNCTAD Readiness Index
India has moved up from 48th in 2022 to 36th in the 2023 UNCTAD Frontier Technologies Readiness Index. The index assesses countries on five key parameters: ICT, skills, R&D, industrial capacity, and financial access. India, along with Bhutan, Morocco, Moldova, and Timor-Leste, showed improvement due to gains in human capital—primarily higher education and high-skill employment.
| Category | India’s Rank |
|---|---|
| ICT (Information & Communication Tech) | 99th |
| Skills | 113th |
| Research & Development (R&D) | 3rd |
| Industrial Capacity | 10th |
| Access to Finance | 70th |
Global AI Investment Landscape
The United States leads AI investment globally, contributing $67 billion (70%) of the total global AI funding in 2023. China ranks second with $7.8 billion, while India comes in at 10th place with $1.4 billion. While the gap in funding highlights challenges for developing nations, India’s position reflects a growing interest and capability in AI.
AI’s Impact on Employment and the Economy
The AI industry is projected to reach $4.8 trillion by 2033 and affect nearly 40% of global jobs, raising concerns around automation and job displacement. The report underscores the need for reskilling and upskilling to ensure AI enhances productivity while creating new job opportunities instead of eliminating them.
India’s Policy Push for AI Development
The Indian government has taken an active role in fostering AI growth through public-private partnerships and academic collaboration. Initiatives like the India AI Mission are designed to build a strong AI ecosystem by expanding access to AI education and setting up Centres of Excellence in key tech areas.
Technological Specialisation Around the World
Different countries are focusing on specific tech sectors. India is recognised for its advancements in nanotechnology, while Germany leads in wind energy. Such specialisation showcases how countries are aligning their technological growth with their economic strengths and resources.