India has been ranked 10th globally in private Artificial Intelligence (AI) investments in 2023, according to Technology and Innovation Report 2025 released by United Nations Conference on Trade and Development (UNCTAD). This marks a major milestone for India, placing it among top tech-investing nations in the world and highlighting its growing capabilities in the frontier technology space.
Key Highlights
AI Investment Ranking (2023):
- India ranks 10th globally in terms of private AI investments.
- Received $1.4 billion in AI funding during 2023.
- Among developing countries, only India and China feature in the top 10 AI investment list.
- USA remains the leader with $67 billion in AI investments (70% of global share), followed by China at $7.8 billion.
About UNCTAD Technology and Innovation Report 2025
Released By: UNCTAD (United Nations Conference on Trade and Development)
Objective of Report:
- Evaluate national readiness and investments in frontier technologies such as AI, robotics, Internet of Things (IoT), and biotechnology.
- Offer policy recommendations for inclusive and sustainable technology-driven development.
- Track R&D performance, private investments, and innovation strength globally.
- India is among the top 5 globally in terms of scientific strength in AI research, alongside US, China, UK, and Germany.
- Shows notable improvements in human capital with longer schooling years and a higher share of high-skilled jobs.
Challenges Identified for India:
- ICT Infrastructure & Access: Ranked 99, pointing to digital divide.
- Skills Development: Rank 113, suggests a need to significantly upgrade technical education and vocational training. Need for greater investment in technical and AI-specific education, particularly in Tier-II and Tier-III cities.
- Access to Finance: Ranked 70, indicating funding and capital limitations for tech startups. Limited availability of venture capital and startup funding for deep-tech sectors.
India’s Technological Strengths:
- Strong AI Scientific Output: Recognized globally for its AI research publications and innovation.
- Nanotechnology Specialization: India is noted for its patent output in nanotechnology.
- Frontier Tech Strength: Part of a select group of developing economies (including Brazil and the Philippines) outperforming their peers in digital readiness.
Global Context & Strategic Significance:
The AI sector is crucial to the future of economic competitiveness, national security, and innovation ecosystems.
As frontier technologies such as AI, robotics, and biotech reshape global industries, India’s positioning in the top 10 demonstrates:
- Rising foreign and domestic interest in India’s tech ecosystem.
- Potential to emerge as a global innovation hub.
- Urgency to bridge gaps in finance, digital access, and skills training to sustain growth.