India is emerging as one of the leading developing economies in artificial intelligence, ranking among the top 10 emerging-market performers for AI readiness, according to a new World Bank report. The assessment highlights the country’s large pool of technical talent, globally connected information technology industry and extensive digital public infrastructure as key strengths supporting its AI ecosystem.
The report, titled India and Artificial Intelligence: Seizing the Development Opportunity, also points to a sharp rise in private-sector investment. AI-related private investment in India climbed to approximately $4.1 billion in 2025, more than three times the roughly $1.2 billion recorded in 2024. The increase signals growing interest from investors in India’s expanding artificial intelligence capabilities and technology market.
India’s technology workforce is also continuing to expand through Global Capability Centres, which have become an important part of the country’s services economy. The number of professionals employed by these centers rose to 2.36 million in 2025, compared with 1.9 million the previous year. The growth reflects increasing demand for specialized skills and technology-driven services.
The World Bank said India has an opportunity to use AI beyond commercial applications and apply the technology to broader development goals. Potential areas include improving productivity, strengthening public services and addressing challenges across different sectors of the economy. At the same time, the report cautioned that the long-term effects of AI on economic activity and employment remain difficult to predict.
To ensure that AI benefits reach a wider population, the World Bank recommended policies focused on improving digital and AI infrastructure, strengthening the business environment, expanding access to technology and developing workforce capabilities.
The institution is also supporting targeted AI solutions through its AgriConnect initiative. These “small AI” applications are designed around specific local needs and can be adapted for communities operating with limited resources. Such tools could help extend the advantages of AI while assisting workers and communities as technology changes the nature of work.
For South Asia more broadly, the World Bank expects AI adoption to generate significant benefits when technologies are adapted to local conditions rather than simply imported. The accompanying South Asia Economic Update projects regional economic growth of 6.9% in 2026, keeping South Asia on track to remain the fastest-growing region globally.
With its combination of digital infrastructure, skilled professionals and an internationally integrated IT sector, India is positioned to expand the use of AI across business, public services and development initiatives. The World Bank’s assessment underscores both the opportunities and policy challenges that will shape the country’s AI-driven growth.
