India ranks among top 10 emerging markets in AI readiness as private investment triples

India ranks among the top 10 emerging markets in AI readiness, according to a World Bank report titled 'India and Artificial Intelligence: Seizing the Development Opportunity'. The report highlights India's strong foundation in AI, supported by its large technical workforce, globally integrated IT sector, and digital public infrastructure. The World Bank emphasizes that India is well positioned to harness AI's potential for economic and social development.

The World Bank report underscores the rapid growth of AI investment in India, which has more than tripled to $4.1 billion in 2025 from $1.2 billion a year ago. This surge in investment reflects growing confidence in India's AI ecosystem and its ability to drive innovation and economic transformation. The report also notes that AI adoption has the potential to significantly boost productivity, expand export opportunities, and improve public service delivery in South Asia.

According to the report, the number of professionals employed by Global Capability Centres (GCCs) in India rose to 2.36 million in 2025, up from 1.9 million the previous year. This growth highlights the increasing role of GCCs in driving AI-related employment and contributing to India's digital economy. The World Bank attributes this expansion to India's strong IT sector and its ability to attract global investment in AI and related technologies.

In India, the growth of AI readiness and investment is expected to have significant implications for the tech sector and the broader economy. The World Bank's report suggests that AI could transform South Asia's development trajectory, with India playing a pivotal role. This includes potential improvements in public service delivery, increased labor productivity, and expanded export opportunities. Indian regulators and businesses are likely to focus on leveraging AI to drive innovation and maintain competitive advantage in the global market.

The World Bank's findings indicate that India is well positioned to benefit from AI advancements, but challenges remain in ensuring equitable access and addressing potential risks. The report highlights the need for continued investment in digital infrastructure and workforce training to sustain India's progress. As AI adoption accelerates, India's ability to navigate these challenges will be critical in determining the long-term impact of AI on its economy and society.