India joins top 10 emerging markets for AI readiness as investment triples

India has emerged as one of the top 10 emerging markets for AI readiness, with private investment in artificial intelligence tripling to USD 4.1 billion in 2025, according to a World Bank report. The findings highlight India’s technical workforce and digital infrastructure as key strengths, while emphasizing the need for policy measures to maximize AI’s developmental impact.

AI Readiness and Investment Surge

According to Mint, India has secured a place among the top 10 emerging markets for artificial intelligence (AI) readiness, reflecting its rapid progress in adopting and developing AI technologies. The World Bank’s latest findings indicate that private investment in AI in India more than tripled in 2025, reaching USD 4.1 billion, up from USD 1.2 billion in 2024.

This growth is attributed to India’s expanding technical workforce and robust digital public infrastructure, which have positioned the country as a competitive player in the global AI landscape.

Workforce and Economic Growth

The report also highlights the role of Global Capability Centres (GCCs) in India’s tech ecosystem. These centres now employ 2.36 million professionals, an increase from 1.9 million in 2024, underscoring India’s status as a hub for global tech talent.

Economically, South Asia is projected to grow by 6.9% in 2026, retaining its position as the world’s fastest-growing region. The World Bank links this growth potential to the region’s ability to leverage AI and digital technologies effectively.

Policy and Development Challenges

Despite these advances, the World Bank cautions that the long-term impact of AI on labor markets and economic development remains uncertain. The report emphasizes the need for policy measures to deepen AI-enabling infrastructure, improve access to AI tools, and ensure that the benefits of AI are broadly distributed.

Franziska Ohnsorge, World Bank Group Chief Economist for Asia, noted that the biggest gains for South Asia may come from adapting AI to local conditions, particularly through "small AI"—resource-efficient, locally tailored applications. The World Bank’s AgriConnect initiative is cited as an example of efforts to ensure AI reaches a wider population, including low-resource settings.

Developing: what is not yet confirmed

The following is reported but has not been independently confirmed.

Some of the claims in the report remain unverified. These include the precise ranking of India among emerging markets for AI readiness, the exact figures for private AI investment, and the projected economic growth rates for South Asia. While the trends align with broader market observations, independent verification is pending.

What this means

Lazyfounder analysis — our interpretation, not reported fact.

India’s rapid ascent in AI readiness is a signal for founders and operators in the region. The tripling of private investment suggests confidence in India’s technical workforce and digital infrastructure, but the real test will be execution. AI adoption in emerging markets often stalls without supportive policies, talent development, and equitable access—areas where India still has room to improve.

For startups, this means opportunity is expanding, but competition will too. Global Capability Centres (GCCs) are already a major employer of tech talent, and their growth could tighten the market for skilled workers. Meanwhile, the World Bank’s focus on "small AI"—locally adapted, resource-efficient tools—highlights a gap that nimble startups could fill. The question is whether India’s ecosystem can balance high-growth AI applications with inclusive development, or if adoption will remain concentrated in urban hubs.

Key takeaways

• India is now a top 10 emerging market for AI readiness, driven by private investment and a growing technical workforce.
• Private AI investment in India reached USD 4.1 billion in 2025, a threefold increase from the previous year.
• Global Capability Centres (GCCs) employ 2.36 million professionals in India, reflecting the country’s role as a global tech hub.
• The World Bank warns that AI’s long-term economic and labor impact remains uncertain without strong policy support.
• South Asia’s projected 6.9% growth in 2026 positions it as the world’s fastest-growing region, with AI adoption as a key driver.

FAQ

What is AI readiness, and how is it measured?

AI readiness refers to a country’s capacity to adopt, develop, and integrate artificial intelligence technologies effectively. It is typically measured using indicators such as digital infrastructure, technical workforce size, investment levels, regulatory frameworks, and the availability of AI-enabling policies.

Why is private AI investment in India growing so rapidly?

The surge in private AI investment in India is driven by factors such as a large pool of technical talent, cost advantages for global companies, and a robust digital public infrastructure. Additionally, India’s role as a hub for Global Capability Centres (GCCs) has attracted significant investment in AI and related technologies.

What are Global Capability Centres (GCCs)?

Global Capability Centres (GCCs) are offshore facilities established by multinational companies to handle critical business functions, including technology development, research, and innovation. India hosts a significant number of GCCs, which employ millions of professionals in tech-related roles.

What does the World Bank recommend for AI adoption in India?

The World Bank recommends policy measures to deepen AI-enabling infrastructure, improve access to AI tools, and ensure that the benefits of AI are widely distributed. It also advocates for locally adapted AI solutions, or "small AI," to address resource constraints and reach underserved populations.

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