India is making big moves in the global artificial intelligence (AI) race. According to the latest UN Technology and Innovation Report 2025, the country attracted $1.4 billion in private investment in AI in 2023, placing India at 10th globally—and making it one of the only two developing countries with significant AI funding. The other is China, which came in second with $7.8 billion in private investment.

The report, released by the United Nations Conference on Trade and Development (UNCTAD), highlights how India is steadily gaining ground in high-tech sectors. While the United States continues to lead the world with a massive $67 billion in private AI investment (accounting for 70% of global funding), India’s position in the top 10 signals a growing presence on the global tech stage.

But investment isn’t the only area where India is making progress.

UNCTAD’s ‘Readiness for Frontier Technologies Index’, which ranks how prepared countries are to adopt and develop cutting-edge technologies like AI, robotics, and biotechnology, placed India 36th out of 170 countries—a jump from 48th place in 2022. This index looks at five major areas: access to information and communications technology (ICT), skills, research and development (R&D), industrial capacity, and access to finance.

While India performed well in some areas, the report points out room for improvement. For instance:

• R&D: India ranks 3rd globally, reflecting its strong research base.

• Industrial capacity: India is 10th, indicating a robust manufacturing and industrial setup.

• However, it lags in other key areas:

  • ICT access: 99th place.

  • Skills: 113th place.

  • Access to finance: 70th place.

These rankings show that while India is excelling in scientific research and industrial capability, it still faces challenges in digital infrastructure, workforce skills, and funding access—areas that are crucial for widespread technology adoption.

The report also notes that India, China, the U.S., the U.K., and Germany demonstrate strong scientific output in AI research, marking them as leaders in innovation.

Interestingly, Bhutan, Morocco, the Republic of Moldova, Timor-Leste, and India were mentioned as countries showing improvement in “human capital,” driven by longer years of schooling and a higher share of high-skill jobs.

Experts say that these developments reflect India’s growing ambition to become a tech-driven economy, especially in fields like AI, where global competition is heating up. But to fully realise this potential, India will need to strengthen its digital infrastructure and invest more in building a highly skilled workforce.