Why in News?
The World Bank has identified India among the top 10 leading emerging-market performers in AI readiness, highlighting its potential to use AI for economic and developmental gains.
Key Facts
Report: India and Artificial Intelligence: Seizing the Development Opportunity
AI investment in India: Rose from $1.2 billion (2024) to $4.1 billion (2025) — more than threefold.
Global Capability Centres (GCCs): Workforce increased from 1.9 million to 2.36 million in 2025.
India’s strengths:
Large technical workforce
Globally integrated IT sector
Digital Public Infrastructure (DPI)
Growing AI investment and innovation
South Asia
South Asia projected to grow 6.9% in 2026, remaining the world’s fastest-growing region.
AI can boost:
Labour productivity
Export opportunities
Public-service delivery
Local innovation
Challenges
Unequal access to AI
Skills and workforce gaps
Limited AI adoption by small firms
Data security and privacy concerns
Regulatory uncertainty
Physical and digital infrastructure gaps
Way Forward
Strengthen AI-enabling infrastructure.
Improve digital and workforce skills.
Support MSMEs in adopting AI.
Promote “small AI”—locally adapted, low-resource AI solutions.
Develop a clear regulatory framework.
Ensure data security, privacy and inclusive access.
Practice Questions
Prelims Question
Q. With reference to India’s AI readiness, consider the following statements:
India is among the top 10 leading emerging-market performers in AI readiness.
Private investment in AI in India increased to $4.1 billion in 2025 from $1.2 billion in 2024.
The growth of AI in India is primarily attributed to agricultural mechanisation.
Which of the statements given above is/are correct?
A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2 and 3
Answer: A
Mains Question
Q. “India’s growing AI readiness provides significant opportunities for economic growth, but inadequate skills, infrastructure and regulatory clarity may limit its benefits.” Discuss. (150 words | 10 marks)