2025 Technology and Innovation Report by UNCTAD

In the 2025 Technology and Innovation Report by UNCTAD, India ranked 36th out of 170 countries in the Readiness for Frontier Technologies Index.

• This indicates India’s growing preparedness to adopt and develop frontier technologies like AI, robotics, IoT, and blockchain.

About the 2025 Technology and Innovation Report

• Purpose of the Report Series: The Technology and Innovation Report aims to explore critical issues in science, technology, and innovation that are relevant to developing countries, focusing on policy-driven analysis and actionable conclusions.
• Theme of the 2025 Edition: The 2025 report is titled “Inclusive Artificial Intelligence for Development”, aiming to assist policymakers in navigating the evolving AI landscape and crafting inclusive science and innovation policies.
• Focus on Inclusive Progress: The report emphasizes the need for inclusive and equitable technological development, ensuring AI benefits are shared across all segments of society.
• Three Strategic Leverage Points: The report identifies infrastructure, data, and skills as the three critical areas necessary to promote sustainable industrialization and innovation in the era of AI.
• Index Composition: The Readiness for Frontier Technologies Index measures readiness using five key indicatorS.
  • ICT Deployment
  • Skills
  • Research and Development (R&D) Activity
  • Industrial Capacity
  • Access to Finance

Key Findings from the 2025 Technology and Innovation Report (UNCTAD)

• Improved Ranking: India ranked 36th out of 170 countries in the 2024 Readiness for Frontier Technologies index, improving from 48th in 2022.
• Performance Across Indicators: India ranked 3rd in R&D, 10th in industrial capacity, but lagged in ICT deployment (99th), skills (113th), and access to finance (70th).
• Advancement in Human Capital: India, along with Bhutan, Morocco, Moldova, and Timor-Leste, improved its human capital position due to increased years of schooling and more high-skill employment.
• Outperforming Developing Nation: India is identified as one of the top developing countries outperforming in technology readiness, alongside Brazil, China, and the Philippines.
  • The report highlights that GDP alone does not determine tech readiness,  countries like India outperform expectations based on income levels.
• Global AI Investment: The U.S. leads with $67 billion in private AI investments in 2023. China ($7.8 billion) and India ($1.4 billion) follow as the only developing countries with significant investments.
• Impacts of AI on Jobs and Economy: AI may affect up to 40% of global jobs, posing risks of automation but also creating new industries and roles.
  • The report stresses the need for reskilling and upskilling to ensure AI benefits labor, not just capital.
• Role of Manufacturing: Countries like India, China, and Brazil showcase how industrialization and tech adoption can reduce poverty and accelerate economic development.

About the AI & Technology Ecosystem in India

• AI Research and Innovation: India ranks 3rd in R&D activity, showcasing its scientific strength, especially in AI.
  • India is among the top 10 countries in AI private investment, with $1.4 billion invested in 2023.
  • India is also one of the leading countries contributing AI-related projects on GitHub, following the U.S. and China.
• Developer Talent and Cloud Services: India has a large talent pool of 13 million developers, making it the second largest GitHub developer base after the United States.
  • India ranks among the top 10 economies with cloud infrastructure services, alongside China, the U.S., Brazil, and Singapore.
• Technology Specialization: India has shown high specialization in nanotechnology, based on patent share comparisons across technological fields.
  

Government Initiatives to Improve the AI Ecosystem in India

• AI Centres of Excellence: The Indian government has collaborated with academia and industry to establish AI-focused centres such as:
  • IIT Hyderabad and IIT Kharagpur
  • Kotak Indian Institute of Science AI–ML Centre
  • NASSCOM Centre of Excellence in Data Science and AI
• India AI Mission (2024): In 2024, the Union Cabinet approved the India AI Mission to strengthen the national AI innovation ecosystem. The mission aims to;
  • Reduce entry barriers for AI programmes
  • Expand AI course availability in tertiary education
  • Focus on small and medium-sized cities to democratize AI education and opportunities

About UN Trade and Development (UNCTAD)

• UNCTAD is a permanent intergovernmental body established by the United Nations General Assembly in 1964.
• Headquarters are located in Geneva, Switzerland.
• It has 195 member states working toward sustainable development.
• Key Objectives
  • Promoting Inclusive Growth: Helps developing countries benefit from globalization by reducing inequalities.
  • Providing Technical Assistance : Supports nations in trade, investment, finance, and technology for sustainable development.
  • Facilitating Consensus-Building : Brings together governments, private sector, and civil society to create development-friendly policies.
• The Objectives align with UN Sustainable Development Goals (SDGs) and Financing for Development (Addis Ababa Agenda, 2015).
• Core Functions
  • Addressing Development Challenges: Provides policy recommendations for economic resilience.
  • Supporting Trade Integration: Helps nations engage effectively in global trade.
  • Diversifying Economies: Reduces commodity dependence and enhances economic stability.
  • Enhancing Digital Access: Promotes technology adoption and innovation.
  • Strengthening Financial Stability: Aids in reducing financial risks and attracting sustainable investments.
  • Improving Trade Efficiency: Works to accelerate goods movement across borders.
• Key Reports and Research
• • Trade and Development Report
  • Digital Economy Report
  • World Investment ReporT
  • Economic Development in Africa Report
  • Technology and Innovation Report