Archive · 9 Oct 2026
World Bank Says India Is Well Positioned Across AI Value Chain
A World Bank report says India is among the stronger emerging economies in getting ready to use artificial intelligence.
India has many technology workers, a large IT industry and digital services that can help people and businesses use AI.
Investment in AI and jobs in global capability centres have also grown.
Still, fewer Indian firms use AI than firms in the United States, and many smaller businesses face barriers.
These barriers include limited computing power, electricity, internet access, useful data and specialized skills.
The report says India can use AI developed elsewhere, adapt it to local needs and build some new AI technologies of its own.
It recommends helping more businesses and public services use AI while protecting people and monitoring risks.
The World Bank report ranks India among the top 10 emerging-market performers in AI readiness, citing its technical workforce, IT sector and digital public infrastructure.
Private AI investment rose from $1.2 billion in 2024 to $4.1 billion in 2025, while GCC employment increased to 2.36 million.
About 23% of Indian firms reported using AI, compared with roughly 43% in the United States; adoption and sophistication remain uneven.
India has strengths in AI adoption, adaptation and frontier development, but gaps in computing, infrastructure, quality data, skills and financing constrain progress.
The report recommends targeted training and affordable tools, better infrastructure and usable public data, support for locally relevant AI, and risk-based safeguards.
- Who
- The World Bank assessed India's artificial intelligence readiness.
- What
- Its report, ‘India and Artificial Intelligence: Seizing the Development Opportunity’, describes India's strengths, constraints and policy options for AI.
- When
- The report cites figures from 2024 and 2025, including AI investment and data-center capacity in 2025.
- Where
- India.
- Why
- To assess India's AI readiness and identify ways to expand AI use, develop local capabilities and address risks.
India's AI strengths
Constraints and risks
Ability to develop across the AI value chain
India's AI strengths
The report says India is better positioned than most other emerging and developing economies to pursue adoption, adaptation and frontier development in parallel.
Constraints and risks
The report also says scarce computing, high-quality local data, specialized skills, research capacity and finance can limit adaptation and frontier development.
AI adoption and access
India's AI strengths
India's technical workforce, IT-services industry and digital public infrastructure can help firms and public services deploy AI.
Constraints and risks
AI use remains lower than in the United States, and large, digitally intensive firms are better positioned than smaller and informal firms.
Employment effects
India's AI strengths
The report says early evidence shows no mass aggregate job losses in India so far, and recommends AI that complements workers.
Constraints and risks
It warns that effects may differ across sectors, worker groups and regions; about 22% of Indian employment is highly exposed to AI.
- Report
- ‘India and Artificial Intelligence: Seizing the Development Opportunity’
- AI readiness
- India is ranked among the top 10 emerging-market performers in AI readiness.
- Private AI investment
- Rose from $1.2 billion in 2024 to $4.1 billion in 2025.
- GCC employment
- Reached 2.36 million professionals in 2025, up from 1.9 million the previous year.
- Firm adoption
- About 23% of Indian firms use AI, compared with roughly 43% in the United States.
- AI talent and infrastructure
- India ranks second in AI talent and 68th in infrastructure in the Tortoise Global AI Index, according to the article.
- Data-center capacity
- India accounted for about 1% of global installed data-center capacity in 2025.
- Employment exposure
- About 22% of Indian employment is highly exposed to AI, compared with 35% in EMDEs and 60% in advanced economies.