India Among Top 10 Emerging AI-Ready Markets. How Much Investment It Pulls

India has emerged as one of the world's more AI-ready emerging economies, according to a recent World Bank report titled 'India and Artificial Intelligence seizing the Development Opportunity'. The country ranks 10th among emerging-market performers on the AI Readiness Index.

The ranking is led by the United States, which scored 100 on the index. China ranked second with a score of 53.8, followed by Singapore, the United Kingdom, France and South Korea. India secured the 10th position with a score of 23.8, placing it among the leading emerging markets preparing for the AI era.

 AI Readiness Is Improving, But Adoption Remains Low

While India ranks among the top 10 countries on AI readiness, the use of AI tools among internet users remains relatively limited. Data from April 2025 show that only 4 per cent of India's internet users reported using ChatGPT.

That figure is far lower than in countries such as the United States and South Korea, where 29 per cent of internet users said they used ChatGPT. Adoption was also higher in Brazil (15 per cent), Vietnam (14 per cent) and Mexico (10 per cent).

The gap suggests that although India has made progress in building the foundations needed for AI, widespread use of AI tools is still at an early stage.

Demand For AI Skills Is Rising Rapidly

The job market, however, tells a different story.

The share of AI-related job postings in India has risen sharply in recent years. AI-related vacancies accounted for around 2.2 per cent of job postings in November 2022. By April 2025, that share had climbed to 6 per cent.

The rise indicates that companies are increasingly looking for workers with AI-related skills. Demand remained relatively stable between 2020 and 2022, but began accelerating from late 2023 onward. The trend points to growing adoption of AI technologies by businesses and a rising need for workers who can use, develop or work alongside AI systems.

Investment Backs India's AI Ambitions

Private investment is also flowing into India's AI ecosystem.

India attracted US$4.1 billion in private AI investment in 2025, placing it sixth among the countries in the dataset. The country ranked behind the United States, China, the United Kingdom, France and Canada, but ahead of Germany, Israel and Australia.

The United States remained the dominant player, drawing US$285.9 billion in private AI investment, far exceeding every other country. China followed with US$12.4 billion.

India's position among the top investment destinations suggests growing confidence in the country's AI sector, even though investment levels remain well below those of the global leaders.

A Strong Foundation, But More Work Ahead

Taken together, the data paint a mixed but promising picture. India has secured a place among the top 10 emerging markets on AI readiness, demand for AI skills is rising rapidly, and private investment in the sector is growing. However, AI adoption among internet users remains comparatively low.

The challenge now will be to translate that readiness into broader adoption, stronger innovation and wider use of AI across the economy.