World Bank Ranks India Among Top 10 Emerging Markets in AI Readiness

The World Bank has ranked India among the top 10 emerging-market performers in artificial intelligence (AI) readiness, according to a report released on 6 October 2026.

The assessment was published in the report titled “India and Artificial Intelligence: Seizing the Development Opportunity.”

The World Bank linked India’s strong position to its large technical workforce, globally connected information technology sector, growing AI investment, and expanding digital public infrastructure.

What is AI Readiness?

AI readiness refers to an economy’s ability to adopt, deploy and scale artificial intelligence technologies.

It generally depends on factors such as:

  • Digital and computing infrastructure
  • Skilled workforce
  • Availability of investment
  • Regulatory environment
  • Enterprise adoption of AI
  • Access to data and digital services

India has emerged as one of the stronger performers among emerging economies because of its large pool of technology professionals and growing digital ecosystem.

AI Investment in India Rises Sharply

Private investment in artificial intelligence in India increased significantly during 2025.

According to the World Bank report:

Particular Figure
Private AI Investment in 2024 USD 1.2 billion
Private AI Investment in 2025 USD 4.1 billion
Increase USD 2.9 billion

This sharp increase reflects growing interest from domestic companies, global technology firms, startups and investors in India’s AI ecosystem.

Global Capability Centres Expand in India

The World Bank also highlighted the growing role of Global Capability Centres (GCCs) in India.

The number of professionals employed by GCCs increased from:

  • 1.9 million in 2024
  • to 2.36 million in 2025

Global Capability Centres are India-based units of multinational companies that provide services such as:

  • Information technology
  • Data analytics
  • Finance
  • Research and development
  • Business operations
  • Artificial intelligence and automation

Their expansion has strengthened India’s position in global technology and digital services.

World Bank Recommends Policy Measures

The report said that the long-term economic and labour-market impact of AI remains uncertain.

The World Bank recommended a number of policy measures to help India maximise the benefits of artificial intelligence.

These include:

  • Strengthening AI-enabling digital infrastructure
  • Improving the business environment
  • Expanding access to AI technologies
  • Building workforce skills
  • Supporting innovation and entrepreneurship
  • Preparing workers for changes in the labour market

The report also highlighted the potential of AI to improve productivity and public service delivery.

AI Adoption Among Indian Firms

As of 6 October 2026, around 23% of Indian firms reported using some form of artificial intelligence.

By comparison, around 43% of firms in the United States reported using AI.

Country Firms Using AI
India 23%
United States 43%

The World Bank noted that the difference was even larger when comparing the use of more advanced AI applications.

This indicates that India has strong potential but still has considerable room to expand enterprise-level AI adoption.

Role of Digital Public Infrastructure

India’s digital public infrastructure (DPI) was identified as another major strength.

Digital public infrastructure includes large-scale digital systems used for:

  • Identity
  • Payments
  • Financial inclusion
  • Data exchange
  • Public-service delivery

India’s experience with digital systems has created a foundation that can support wider adoption of AI in both the public and private sectors.

AI and India’s Economic Growth

The report linked greater AI adoption with the potential to improve:

  • Productivity
  • Business efficiency
  • Innovation
  • Employment quality
  • Financial services
  • Healthcare
  • Education
  • Government service delivery

However, the World Bank cautioned that the benefits of AI will depend on how effectively India expands skills, infrastructure and access.

The World Bank also raised India’s FY 2026-27 GDP growth forecast to 7.1%, reflecting the broader resilience of the Indian economy.

Why is India Strong in AI Readiness?

India’s position among the top emerging-market performers is supported by several structural advantages:

  • Large pool of engineers and technology professionals
  • Strong IT services industry
  • Rapidly expanding AI investment
  • Growing Global Capability Centres
  • Large digital consumer base
  • Extensive digital public infrastructure
  • Strong startup ecosystem
  • Increasing adoption of AI by businesses

Sumit Arora

As a team lead and current affairs writer at Adda247, I am responsible for researching and producing engaging, informative content designed to assist candidates in preparing for national and state-level competitive government exams. I specialize in crafting insightful articles that keep aspirants updated on the latest trends and developments in current affairs. With a strong emphasis on educational excellence, my goal is to equip readers with the knowledge and confidence needed to excel in their exams. Through well-researched and thoughtfully written content, I strive to guide and support candidates on their journey to success.

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