The country ranks 10th among emerging-market performers on the AI Readiness Index.
India has emerged as one of the world’s more AI-ready emerging economies, according to a recent World Bank report titled ‘India and Artificial Intelligence seizing the Development Opportunity’.
Private investment is also flowing into India’s AI ecosystem. The country ranked behind the United States, China, the United Kingdom, France and Canada, but ahead of Germany, Israel and Australia. India’s position among the top investment destinations suggests growing confidence in the country’s AI sector, even though investment levels remain well below those of the global leaders.
India attracted US$4.1 billion in private AI investment in 2025, placing it sixth among the countries in the dataset. The United States remained the dominant player, drawing US$285.9 billion in private AI investment, far exceeding every other country. China followed with US$12.4 billion.
Taken together, the data paint a mixed but promising picture. However, AI adoption among internet users remains comparatively low. India has secured a place among the top 10 emerging markets on AI readiness, demand for AI skills is rising rapidly, and private investment in the sector is growing.
