India’s Position in Global AI Investments Rank 10th Globally

India’s significant strides in artificial intelligence (AI) have been highlighted by a recent United Nations (UN) report, which places the country 10th globally in terms of private AI investment. In 2023, India secured a substantial Rs. 11,943 crore (US$ 1.4 billion) in private investment, reinforcing its position as one of the leading nations in AI development. Alongside China, India stands out as one of the only developing countries with significant AI funding, marking a key development in the global AI landscape. India’s improvement is also evident in its ranking in the United Nations Conference on Trade and Development (UNCTAD) ‘Readiness for Frontier Technologies’ Index, where it moved up from 48th in 2022 to 36th in 2024 out of 170 countries. This improvement reflects India’s growing investment in technologies that have the potential to reshape global industries.

Key Points

AI Investment and Global Ranking

• India ranks 10th globally with Rs. 11,943 crore (US$ 1.4 billion) in private AI investment in 2023. It remains one of the top two developing countries, alongside China, in terms of AI funding.

United Nations Report Findings

• India has improved its UNCTAD ‘Readiness for Frontier Technologies’ Index ranking from 48th in 2022 to 36th in 2024.
• Specific rankings include 99th in ICT deployment, 113th in skills, 3rd in research and development (R&D), 10th in industrial capacity, and 70th in financial access.

Global AI Investment Leaders

• United States leads with Rs. 5,71,577 crore (US$ 67 billion).
• China follows with Rs. 66,541 crore (US$ 7.8 billion).
• Economic Impact of AI: AI is projected to have an economic impact of Rs. 4,09,48,800 crore (US$ 4.8 trillion) by 2033, underscoring its potential to revolutionize industries.

Challenges and Concerns

• Job Displacement: With AI-driven automation, 40% of global jobs are at risk, raising concerns over unemployment and inequality.
• Corporate Control of AI R&D: 100 global companies, mainly from the US and China, control 40% of corporate AI R&D spending, resulting in concentrated control of the technology.

India’s Strengths and Focus Areas

• India has 13 million software developers, making it the second-largest pool globally after the United States in GitHub activity.
• India AI Mission and IIT AI research centers are driving innovation.
• Nanotechnology is another area where India excels in emerging technologies.

Global Competitors

India faces competition from other countries in specific technologies, such as,

• Germany in wind energy.
• Japan in electric vehicles (EVs).
• South Korea in 5G wireless networks.

Future Focus

• To sustain its position, India must prioritize investment in R&D and workforce skill development in AI.