According to the 2025 Technology and Innovation Report by UNCTAD, India with US $1.4 billion investment ranks 10th globally in private investments in Artificial Intelligence (AI) in 2023, making it one of the only two developing nations, along with China, with significant AI investments.
About the Report
- Released by: United Nations Conference on Trade and Development (UNCTAD)
- Focus of 2025 Edition: “Inclusive Artificial Intelligence for Development”
- Objective: It aimed to guide policymakers in shaping inclusive science, technology, and innovation (STI) policies and address challenges and opportunities in the evolving AI landscape, especially for developing countries
Key Highlights
Top Global AI Investment (2023):
- USA: USD 67 billion (70% of global private AI investment)
- China: USD 7.8 billion (2nd)
- India: USD 1.4 billion (10th)
Concentration of R&D Power:
- 100 companies (mostly in US & China) account for 40% of global R&D private investment
Global AI Governance Gap:
- 118 countries, mostly from the Global South, are absent from global AI governance frameworks
Job Impact of AI:
- AI Market Projection: USD 4.8 trillion by 2033
- Job Impact: AI-led automation may affect 40% of global jobs; potential productivity boost vs. job displacement
- Challenges: Talent & infrastructure concentrated in select economies and automation may widen inequality
- Opportunities: AI can empower workers and create new industries. So there is need for reskilling/upskilling to harness AI positively
UNCTAD’s Key Recommendations for Developing Countries:
- Strengthen infrastructure, data systems, and digital skills (3 leverage points)
India’s AI Readiness and Global Position
- India ranks 36th out of 170 countries (up from 48th in 2022) in the Readiness for Frontier Technologies Index
- Sub-indices Rankings for India:
- ICT: 99th
- Skills: 113th
- R&D: 3rd
- Industrial Capacity: 10th
- Finance: 70th