India Ranks 4th Globally On AI Performance : ICRIER and IPCIDE Report

New Delhi: India has emerged as the world’s fifth most digitalised economy and ranks fourth globally in artificial intelligence or AI performance, according to a report released on Friday by the ICRIER-Prosus Centre for Internet and Digital Economy (IPCIDE).

In the report, it has also revealed that India has outpaced Germany, France, Japan, UK and Canada among 71 countries in the AI race as 72 per cent of global AI users now in developing countries and India and China together accounting for nearly two-fifths of worldwide AI adoption.

The report further noted that India generated $328 billion in digitally delivered trade and is home to the world's second-largest AI talent pool. It also observed that generative AI diffused faster than any previous technology in history, becoming a developing-country phenomenon almost immediately after launch.

The report's findings reveal a structural shift in global digital leadership. “Among the world's top five digital economies, China, Singapore and India are now from the Indo-Pacific region, signalling the emergence of a tri-polar digital order alongside the traditional North Atlantic pole,” it said.

India climbed to fifth in global rankings (eighth in 2025), as digital momentum accelerated in an increasingly competitive environment. “The country's standalone AI index ranking of 4th - behind only the United States, China and Singapore - validates its emergence as a global AI powerhouse,” the report said.

Commenting on the report, ICRIER chairperson, Pramod Bhasin said that India has built strong foundations through connectivity, entrepreneurship and digital public infrastructure. “The next phase of growth depends on effectively leveraging AI, deepening innovation capabilities and strengthening digital trust,” he said.