“India is not just adapting to the future of frontier technologies—it is actively helping to shape it, emerging as a key driver of AI innovation in the Global South.” — UNCTAD Tech Readiness Report 2025
India has made significant strides in harnessing emerging technologies, climbing to the 36th position in the UNCTAD Global Readiness for Frontier Technologies Index 2025, a notable jump from its 48th place in 2022. This progress underscores India’s growing strength in areas such as artificial intelligence (AI), nanotechnology, and research & development (R&D)—positioning the country as a global tech powerhouse despite its developing economy status.
According to the United Nations Conference on Trade and Development (UNCTAD), India is among a select group of developing nations outperforming expectations in tech adoption and innovation. From hosting the world’s second-largest developer base on GitHub to investing over $1.4 billion in private AI initiatives in 2023, India is paving the way toward a future driven by frontier technologies.
🔍 Understanding the Global Readiness Index
The Global Readiness for Frontier Technologies Index, released annually by the United Nations Conference on Trade and Development (UNCTAD), evaluates a country’s ability to adopt and integrate frontier technologies such as AI, robotics, Internet of Things (IoT), and nanotechnology.
What Are Frontier Technologies?
Frontier technologies represent the cutting edge of innovation—emerging fields that are transforming industries and societies:
- Artificial Intelligence (AI): Machine learning, deep learning, natural language processing
- Robotics & Automation: Industrial robots, autonomous vehicles, drones
- Internet of Things (IoT): Connected devices, smart cities, industrial IoT
- Nanotechnology: Materials science at molecular scale, advanced manufacturing
- Blockchain: Distributed ledger technology, cryptocurrencies, smart contracts
- Biotechnology: Genetic engineering, synthetic biology, personalized medicine
- Quantum Computing: Next-generation computing power for complex problems
Five Key Dimensions Measured:
The index assesses readiness across five critical pillars:
1. ICT Deployment
- Internet penetration and broadband access
- Mobile connectivity and 5G infrastructure
- Digital infrastructure in urban and rural areas
- Cloud computing adoption
2. Skills and Human Capital
- Digital literacy rates
- STEM education quality and enrollment
- Technical and vocational training
- University research output
3. Research and Development (R&D)
- R&D spending as percentage of GDP
- Number of researchers per capita
- Scientific publications and patents
- Innovation ecosystem strength
4. Industrial Capacity
- Manufacturing competitiveness
- Medium and high-tech industry output
- Quality of production networks
- Industrial diversification
5. Access to Finance
- Venture capital availability
- Startup funding ecosystem
- Credit access for tech businesses
- Public-private investment partnerships
India’s leap from 48th to 36th globally in the 2025 report reflects its rising influence in the digital and tech innovation landscape, particularly as it balances rapid development with policy-driven modernization.
Think of this index like a report card for how ready a country is to use future technologies. Just as students need textbooks, teachers, classrooms, good study habits, and pocket money to succeed, countries need five things: digital infrastructure (ICT), educated people (skills), research capability (R&D), factories to make things (industrial capacity), and money for startups (finance). India scores excellently on research and manufacturing but needs improvement in internet access and education quality.
🏆 India’s 2025 Ranking: Key Highlights
India’s performance in the 2025 UNCTAD Global Readiness Index reveals a mixed but ultimately promising picture. While the country excels in certain dimensions, significant challenges remain in others.
Overall Performance Summary:
| Indicator | India’s 2025 Rank | Assessment |
|---|---|---|
| Overall Readiness | 36th (up from 48th) | Significant 12-place improvement |
| R&D Performance | 3rd globally | Exceptional strength |
| Industrial Capacity | 10th globally | Strong manufacturing base |
| Access to Finance | 70th | Moderate—needs improvement |
| ICT Deployment | 99th | Weak—infrastructure gaps |
| Human Capital & Skills | 113th | Weak—education/training gaps |
Additional Global Achievements:
- GitHub Developer Community: 2nd largest globally with over 13 million active developers, trailing only the United States
- Private AI Investment (2023): 10th globally with USD 1.4 billion in private sector funding
- AI Research Publications: Among top contributors to global AI research output
- Startup Ecosystem: Third-largest startup ecosystem globally
Key Insight:
While India excels in R&D and industrial infrastructure, its performance in ICT readiness and skills development reveals areas that require significant policy attention and investment, particularly in rural and semi-urban regions.
India’s ranking paradox is fascinating—3rd in R&D but 113th in human capital. How can a country be so good at research yet rank so low on skills? The answer: India’s elite research institutions (IITs, IISc, CSIR labs) and top 10% of graduates are world-class, but the average educational quality across the broader population lags. It’s a classic case of uneven development—excellence at the top, challenges at the base. This explains why India produces brilliant tech leaders while simultaneously struggling with basic digital literacy.
📊 Performance Breakdown: The Five Dimensions
1. ICT Deployment (Ranked 99th)
India’s ICT ranking at 99th signals that digital infrastructure and connectivity, especially in rural and semi-urban regions, need focused investment.
Challenges:
- Rural Internet Access: Less than 40% of rural households have internet connectivity
- Digital Divide: Stark disparity between urban metros and rural/semi-urban areas
- Fiber Penetration: Limited fiber optic infrastructure outside major cities
- 5G Adoption: Slow rollout in tier-2 and tier-3 cities
- Affordability: Data and device costs still barrier for lower-income populations
Progress Being Made:
- BharatNet project expanding fiber connectivity to gram panchayats
- 5G spectrum auction completed; rollout underway
- PM-WANI scheme promoting public WiFi hotspots
- Increasing smartphone penetration (750M+ users)
2. Skills and Human Capital (Ranked 113th)
Despite a booming youth population and expanding tech industry, India ranks 113th in human capital, reflecting deep structural challenges.
Core Problems:
- Rural Education Quality: Inadequate focus on digital literacy in rural schools
- STEM Education Gaps: Insufficient STEM-based higher education outside top-tier institutions
- Industry-Academia Mismatch: Graduate skillsets don’t align with industry needs
- Teacher Training: Lack of digitally skilled educators
- Gender Disparity: Lower female participation in STEM fields
Positive Developments:
- Improvements in high-skill employment rates
- Rising average years of schooling (now ~7.2 years)
- Cohort with Bhutan, Morocco showing steady human capital advancement
- National Education Policy 2020 emphasizing coding, AI from primary level
3. Research and Development (Ranked 3rd)
India’s standout performance in R&D represents its greatest strength in the index.
What Drives This Excellence:
- Research Institutions: IITs, IISc, CSIR network, ISRO, DRDO producing world-class research
- Government Funding: Sustained investment in AI, space tech, biotechnology, quantum computing
- Academia-Industry Collaboration: Increasing partnerships between universities and corporations
- Scientific Publications: Growing presence in high-impact journals
- Patent Output: Rising patent applications in AI, nanotech, biotech
- Startup Innovation: R&D-focused startups in deeptech, agritech, healthtech
Key Research Areas:
- Artificial Intelligence and Machine Learning
- Quantum Computing
- Space Technology
- Biotechnology and Genomics
- Nanotechnology
- Renewable Energy Technology
4. Industrial Capacity (Ranked 10th)
India’s 10th place ranking in industrial capacity showcases its manufacturing potential and diversified industrial base.
Strengths:
- Manufacturing Sectors: Defense, electronics, pharmaceuticals, automotive leading growth
- PLI Schemes: Production-Linked Incentive programs boosting semiconductor, EV, pharma manufacturing
- Make in India: Attracting global manufacturing investment
- MSMEs: 63 million micro, small, and medium enterprises providing industrial depth
- Export Competitiveness: Growing in high-tech and medium-tech exports
5. Access to Finance (Ranked 70th)
At 70th, India shows moderate performance but still struggles with funding accessibility for startups and deep-tech ventures.
Challenges:
- Geographic Concentration: Venture capital heavily focused on Bangalore, Delhi-NCR, Mumbai
- Early-Stage Funding Gap: Seed and pre-seed funding difficult to access
- Risk Aversion: Limited appetite for deep-tech, long-gestation ventures
- Credit Access: Traditional banks hesitant to fund tech startups
Improvements:
- Fund of Funds for Startups (FFS) supporting early-stage ventures
- Growing angel investor networks
- Government co-investment platforms
- Startup India initiative reducing barriers
Remember the Pattern: India’s strengths (R&D 3rd, Industrial 10th) are in “hard” infrastructure—research labs, factories, institutions. India’s weaknesses (ICT 99th, Skills 113th) are in “soft” infrastructure—connectivity, education, training. The gap represents opportunity: India has the research and manufacturing base but needs to democratize access through better digital infrastructure and broader skill development.
🧠 India’s Role in Frontier Technologies
India’s emergence as a global tech hub is particularly evident in Artificial Intelligence (AI) and Generative AI (GenAI). With over 13 million developers, India holds the second-largest developer base on GitHub, trailing only the United States.
GitHub Developer Ecosystem:
This massive talent pool contributes actively to:
- Open-Source Projects: Major contributions to TensorFlow, PyTorch, scikit-learn, and other AI frameworks
- Enterprise Solutions: Building AI applications for global corporations
- Local Language AI: Developing NLP models for Indian languages
- Inclusive Technology: Creating accessible AI for underserved populations
- Emerging Market Solutions: Scalable AI solutions applicable across developing nations
AI and GenAI Contributions:
1. AI Research and Publications
- India ranks among top contributors to global AI research
- Peer-reviewed papers in natural language processing, machine learning, computer vision
- Research focus on AI for social good, healthcare, agriculture
- Collaboration with international research institutions
2. Generative AI Projects
- Healthcare: AI-powered diagnostics, drug discovery, patient monitoring
- Education: Personalized learning platforms, automated assessment, language learning
- Finance: Credit scoring, fraud detection, algorithmic trading, robo-advisors
- Language Translation: Real-time translation for 22 official languages
- Content Creation: AI tools for regional content in entertainment, media
- Agriculture: Crop disease detection, yield prediction, weather forecasting
3. AI Startups Landscape
India’s AI startup ecosystem is booming with companies working across:
- Conversational AI: Chatbots, virtual assistants, voice interfaces
- Computer Vision: Image recognition, video analytics, autonomous systems
- Predictive Analytics: Business intelligence, demand forecasting
- Automation: RPA (Robotic Process Automation), workflow optimization
Notable Indian AI Companies:
- Uniphore (conversational AI)
- Haptik (chatbots and virtual assistants)
- Mad Street Den (computer vision)
- Niramai (AI healthcare diagnostics)
- CropIn (agritech AI platform)
💰 Private Investment in AI
India ranks 10th globally in private investment in AI, attracting USD 1.4 billion in 2023 alone. While still trailing tech giants like China and the United States, this figure reflects growing momentum.
What’s Driving Investment:
- Rising Investor Confidence: Growing track record of successful AI startups achieving scale
- Large Domestic Market: 1.4 billion potential users creating massive opportunity
- Cost Advantage: Talented AI engineers at competitive costs
- Government Support: Startup India, tax incentives, regulatory sandboxes
- Unicorn Success Stories: Proven exits and valuations attracting global VC attention
Sector-Wise AI Investment Focus:
- Fintech: Digital payments, lending, insurance, wealth management
- Agritech: Precision agriculture, supply chain optimization, market linkages
- Healthtech: Telemedicine, diagnostics, drug discovery, hospital management
- Edtech: Personalized learning, exam prep, skill development
- Retailtech: E-commerce optimization, supply chain, customer analytics
Key Investors:
- Global VCs: Sequoia Capital, Accel, Tiger Global, SoftBank
- Domestic Funds: Nexus Venture Partners, Blume Ventures, Chiratae Ventures
- Corporate Investors: Google, Microsoft, Amazon investing in Indian AI startups
- Government Funds: India AI Fund, Fund of Funds for Startups
- Strategic Investments: Reliance, Tata, Infosys, Wipro backing AI ventures
Challenges in Investment Landscape:
- Geographic Concentration: 70%+ funding goes to top-3 metros
- Stage Gap: Growth-stage funding abundant; seed funding still difficult
- Deep-Tech Risk: Hardware, quantum, advanced research face funding challenges
- Exit Opportunities: Limited IPO market for mid-size tech companies
📈 Upskilling for the AI Future
As AI continues to transform industries, the UNCTAD report highlights a growing need for reskilling and upskilling India’s workforce. The challenge is massive: preparing 500 million+ workers for AI-driven economy.
Government-Led Initiatives:
1. Skill India Mission
- Target: Training 400 million people by 2025 in future-ready skills
- Focus Areas: AI/ML, data science, cloud computing, cybersecurity
- Implementation: Through ITIs, polytechnics, online platforms
- Certification: Industry-recognized credentials for employability
2. National Education Policy (NEP) 2020
- Coding and AI education from Class 6
- Interdisciplinary approach to STEM
- Focus on critical thinking and problem-solving
- Vocational education integrated with academics
3. Digital India Initiative
- Digital literacy programs across rural India
- Common Service Centers providing training
- Digital Saksharta Abhiyan (DISHA) for basic digital skills
- Increasing internet penetration for online learning access
Online Learning Platforms:
- NPTEL (National Programme on Technology Enhanced Learning): IIT/IISc professors offering free online courses
- SWAYAM: Government platform with 2,000+ courses across disciplines
- DIKSHA: Digital infrastructure for school education
- e-Vidya: Multi-mode access for digital education
Private Sector Contributions:
- Corporate Training: TCS, Infosys, Wipro investing billions in employee reskilling
- Edtech Platforms: Upgrad, Simplilearn, Great Learning offering AI/ML courses
- Bootcamps: Intensive coding bootcamps producing job-ready graduates
- University Partnerships: Tech companies partnering with universities for curriculum design
Focus Areas for AI Skilling:
- Machine Learning and Deep Learning
- Natural Language Processing
- Computer Vision
- Data Science and Analytics
- AI Ethics and Responsible AI
- AI Application Development
- Cloud Computing and DevOps
These efforts are critical to ensuring that India’s youth are equipped with future-ready skills and that job displacement due to automation is countered with new opportunities in AI-driven sectors.
Don’t confuse: UNCTAD (UN Conference on Trade and Development) with other UN agencies like UNDP (Development Programme), UNEP (Environment Programme), or UNESCO (Education). UNCTAD specifically focuses on trade, investment, and development issues. Also, don’t mix up India’s 2025 overall rank (36th) with its R&D rank (3rd) or GitHub rank (2nd)—these are different metrics!
🧭 India AI Mission and Strategic Policy Initiatives
India’s AI vision is backed by strong government initiatives, particularly the India AI Mission launched to position India as a global AI powerhouse.
India AI Mission: Key Pillars
1. Democratizing AI Access
- Objective: Making AI education and tools accessible across cities and towns, not just metros
- Implementation: AI labs in tier-2/3 cities, online courses in vernacular languages
- Target: Creating AI-literate population of 100 million+ by 2030
- Focus: Bridging urban-rural AI divide
2. Supporting AI for Social Good
- Healthcare: AI diagnostics in rural primary health centers
- Agriculture: AI-powered advisory services for smallholder farmers
- Education: Personalized learning for students in vernacular medium schools
- Governance: AI for efficient public service delivery
3. Building Ethical AI Frameworks
- Privacy Protection: Guidelines for data collection and usage
- Algorithmic Transparency: Requirements for explainable AI in critical sectors
- Bias Mitigation: Standards to prevent discrimination in AI systems
- Security: Protecting AI systems from adversarial attacks
- Accountability: Clear liability frameworks for AI decisions
4. AI Infrastructure Development
- Compute Power: National AI computing infrastructure
- Data Sets: Creating large-scale Indian language datasets
- Research Centers: AI Centers of Excellence in IITs, IISc
- Innovation Hubs: AI incubators and accelerators
5. Startup and Industry Support
- Funding: India AI Fund providing seed and growth capital
- Mentorship: Connecting startups with industry experts
- Market Access: Government procurement preferences for Indian AI solutions
- Regulatory Sandbox: Safe environment for testing AI innovations
Other Strategic Initiatives:
National AI Portal (INDIAai.gov.in):
- Central repository for AI resources
- Job board for AI professionals
- Research paper database
- Dataset catalog for researchers
Responsible AI for All (OECD Partnership):
- Developing AI governance frameworks
- International collaboration on AI standards
- Sharing best practices
NITI Aayog’s AI Strategy:
- Sector-specific AI roadmaps (healthcare, agriculture, education)
- Public-private partnership models
- Monitoring framework for AI adoption
These efforts reflect a broader push to make AI not just a tool of economic growth, but a driver of inclusive digital empowerment benefiting all sections of society.
🌏 Comparing India with Other Developing Nations
India’s leap in global tech readiness is part of a broader trend where developing countries are punching above their economic weight in the tech domain.
| Country | Readiness Rank 2025 | Notable Strengths |
|---|---|---|
| India | 36th | AI, R&D (3rd), Developer Ecosystem (2nd), Industrial Capacity (10th) |
| China | Top 10 | Advanced manufacturing, strong AI funding, comprehensive tech infrastructure |
| Brazil | Top 50 | Tech startups, regional AI leadership in Latin America |
| Philippines | Rising Fast | BPO-driven digital services, growing developer community |
| Morocco | Advancing | Digital infrastructure, human capital development (similar to India) |
| Bhutan | Advancing | Human capital development, sustainable tech focus |
Key Insights from Comparisons:
1. Outperformance Despite Lower GDP
India, along with countries like Brazil and Philippines, demonstrates that strategic investment and digital ambition can help emerging economies leapfrog traditional development models. These nations achieve tech readiness levels higher than their per capita GDP would predict.
2. Different Development Paths
- China: State-led, comprehensive approach with massive infrastructure investment
- India: Market-driven innovation with selective government intervention
- Brazil: Regional hub strategy leveraging large domestic market
- Philippines: Services-led digital transformation through BPO sector
3. Common Challenges
Developing nations share similar obstacles:
- Infrastructure deficits in rural areas
- Skills gaps despite growing tech sectors
- Funding concentration in major cities
- Brain drain to developed countries
4. Unique Advantages
India’s specific strengths include:
- English language advantage for global tech collaboration
- Massive IT services industry providing foundation
- Democratic governance enabling innovation ecosystem
- Large domestic market driving local innovation
- Diaspora connections facilitating knowledge transfer
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India jumped from 48th position in 2022 to 36th position in 2025 in the UNCTAD Global Readiness Index—a significant 12-place improvement demonstrating accelerated tech readiness.
The index measures five key dimensions: ICT Deployment, Skills and Human Capital, R&D, Industrial Capacity, and Access to Finance. Remember the mnemonic: I-SHIFT.
India ranks an impressive 3rd globally in R&D performance, showcasing its strong research institutions (IITs, IISc, CSIR), government funding, and robust innovation ecosystem.
India has the 2nd largest developer base on GitHub globally with over 13 million active developers, trailing only the United States. This massive talent pool drives AI and open-source innovation.
India private AI sector attracted USD 1.4 billion in investment in 2023, ranking 10th globally. This reflects growing investor confidence and focus on fintech, agritech, healthtech, and edtech applications.
