NEW DELHI — India has climbed to fifth place in global digital economy rankings and placed fourth on the CHIPS-AI index, reflecting the country’s growing digital momentum in an increasingly competitive global environment, according to a report released Friday.
The report, from the ICRIER-Prosus Centre for Internet and Digital Economy, examined 71 countries covering 96% of global GDP. It said India outpaced several major developed economies, including Germany, France, Japan and Canada, in digital performance.
India generated $328 billion in digitally delivered trade and hosts the world’s second-largest artificial intelligence talent pool, the report said.
The country also accounts for roughly 50% of BRICS digitally delivered services. In AI performance, India ranked behind only the United States, China and Singapore.
Among the world’s five largest digital economies, three — China, Singapore and India — are now in the Indo-Pacific region, signaling the emergence of a more multipolar digital order alongside the traditional North Atlantic bloc.
The report also pointed to a major shift in the global digital landscape, saying 72% of AI users are now in developing countries. India and China together accounted for nearly two-fifths of global AI adoption.
“India has built strong foundations through connectivity, entrepreneurship and digital public infrastructure. The next phase of growth depends on how effectively we leverage AI, deepen innovation capabilities and strengthen digital trust,” said Pramod Bhasin, chairperson of ICRIER.
India accounts for 26% of global AI users but only 1% of global private AI investment, underscoring a significant funding gap, according to the report.
The country ranks second globally in AI talent after the United States but does not yet have comparable levels of long-term venture capital or computing infrastructure. The report said that gap represents both a challenge and an opportunity.
India’s long-term digital competitiveness will depend on its ability to mobilize risk capital, expand access to computing capacity, strengthen university-startup links and build stronger pathways for AI commercialization, the report said.
The report also noted that while AI adoption is spreading quickly, advanced chips, computing infrastructure and large language models remain concentrated among a small group of countries and companies. (Source: IANS)
