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

India has emerged as one of the top 10 performers among emerging markets in artificial intelligence (AI) readiness, according to the World Bank’s report, India and Artificial Intelligence: Seizing the Development Opportunity. The report highlights the country’s large technical workforce, expanding information technology sector and digital public infrastructure as key advantages.

Private investment in AI in India more than tripled, rising from $1.2 billion in 2024 to $4.1 billion in 2025. The workforce employed by Global Capability Centres (GCCs) also increased from 1.9 million in 2024 to 2.36 million in 2025.

India’s AI ecosystem benefits from digital platforms such as Aadhaar, the Unified Payments Interface (UPI), DigiLocker and Account Aggregator. These systems can reduce the cost of deploying AI applications across businesses and public services. Initiatives such as BHASHINI, AI4Bharat and the IndiaAI Mission are also supporting the development of language technologies, datasets and AI applications suited to India’s diverse linguistic needs.

The report identifies three stages of participation in the AI value chain: adoption, adaptation and frontier development. While adoption involves using existing AI technologies, adaptation focuses on modifying them for local requirements. Frontier development involves creating new AI models, computing infrastructure and underlying technologies. India has the potential to participate across all three stages.

However, significant challenges remain. Around 23 per cent of Indian firms reported using some form of AI, compared with approximately 43 per cent in the United States. India ranks second globally in AI talent but 68th in infrastructure, according to the Tortoise Global AI Index. The country accounted for only 1 per cent of global installed data-centre capacity in 2025.

Limited access to affordable computing, reliable electricity, high-quality local data, specialised skills and finance continues to constrain wider adoption.

The report also notes that AI’s employment impact remains uncertain. About 22 per cent of Indian employment is highly exposed to AI, although no mass aggregate job losses have been observed so far. Strengthening infrastructure, skills and locally relevant applications will be essential for India to translate its AI potential into inclusive economic growth.