UNCTAD Report Highlights India’s AI Strength, Developer Talent, and Industrial Capacity
United Nations, April 4 — India has made a significant leap in the global technology landscape, climbing to the 36th position out of 170 countries in the United Nations' ‘Readiness for Frontier Technologies’ index for 2024. This is a notable improvement from its 48th rank in 2022, as highlighted in the latest Technology and Innovation Report 2025released by the UN Conference on Trade and Development (UNCTAD).Frontier Technology Readiness: A Closer Look
The index evaluates a country’s preparedness to adopt and integrate frontier technologies such as Artificial Intelligence (AI), robotics, biotechnology, and nanotechnology. It is based on five key pillars: ICT deployment, skills, research and development (R&D) activity, industrial capacity, and access to finance.India's individual rankings across these parameters are as follows:
- ICT: 99th
- Skills: 113th
- R&D: 3rd
- Industrial Capacity: 10th
- Finance Access: 70th
Developing Economies Punching Above Their Weight
The report identifies India, along with Brazil, China, and the Philippines, as developing nations that are exceeding expectations in technology readiness, often outperforming their GDP-based predictions. It highlights that while wealthier nations typically have an edge, countries like India demonstrate how policy direction and strategic investment can defy economic constraints.Countries such as Bhutan, Morocco, the Republic of Moldova, Timor-Leste, and India have shown improvements in human capital, marked by longer schooling and a growing share of high-skill employment.
AI Investment and Innovation
India has emerged as a significant player in the AI landscape. In 2023, it attracted USD 1.4 billion in private AI investment, placing it tenth globally and behind only China among developing economies.AI is projected to reach a market value of USD 4.8 trillion by 2033, becoming a central force in global digital transformation. While the United States leads in private AI investments with USD 67 billion (70% of the global total), India’s rising developer base and policy backing are enhancing its global position.
The report underscores that the benefits of AI — in terms of productivity and innovation — are substantial, but there are concerns regarding job displacement and rising inequality. Nonetheless, it stresses the need for reskilling and upskilling to ensure AI serves as a tool for empowerment rather than disruption.
India’s AI Ecosystem and Government Backing
India’s AI journey has been shaped by strong collaboration between government, academia, and the private sector. Key initiatives include:- India AI Mission (2024) – A Cabinet-approved programme aimed at expanding AI education and innovation, particularly in smaller cities.
- Centres of Excellence such as:
- Indian Institute of Technology (IIT) Hyderabad
- IIT Kharagpur
- Kotak Indian Institute of Science AI–ML Centre
- NASSCOM Centre of Excellence in Data Science and AI
Sectoral Specialisation and Industrial Development
According to the report, India is particularly strong in nanotechnology, based on patent share. This specialisation complements global trends, with other countries focusing on distinct sectors — Germany in wind energy, Japan in electric vehicles, and South Korea in 5G.The report reiterates the critical role of manufacturing and industrialisation in reducing poverty and stimulating economic growth, using India, Brazil, and China as prime examples.
Conclusion
India’s improved position in the UNCTAD Frontier Technologies Readiness Index signals its growing potential as a tech-driven economy. With continued investment in AI, robust policy support, and a burgeoning developer community, India is poised to play a leading role in shaping the future of frontier technologies on the global stage.
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