2025 TECHNOLOGY AND INNOVATION REPORT
NEWS: 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.
WHAT’S IN THE NEWS?
Purpose of the Technology and Innovation Report Series
1. The Technology and Innovation Report (TIR) explores key issues in science, technology, and innovation (STI) with special relevance to developing countries.
2. It focuses on policy-driven analysis and aims to offer actionable conclusions to support evidence-based decision-making.
3. The reports are published by the United Nations Conference on Trade and Development (UNCTAD) to guide sustainable development efforts.
Theme of the 2025 Edition
1. The 2025 edition is titled “Inclusive Artificial Intelligence for Development”.
2. It provides guidance to policymakers on navigating AI’s rapid evolution with a focus on inclusivity in science and innovation policy.
3. The report emphasizes that AI should serve development goals and avoid deepening existing inequalities.
Focus on Inclusive Technological Progress
1. The report stresses the importance of equity in technological advancement, especially in the AI era.
2. It advocates for ensuring that AI benefits are distributed across all societal groups, avoiding exclusion of vulnerable populations.
3. It promotes inclusive digital transformation, aligned with the broader objectives of the Sustainable Development Goals (SDGs).
Three Strategic Leverage Points for AI-Driven Development
1. Infrastructure: Essential for enabling access to digital technologies and AI tools.
2. Data: Acts as the fuel for AI; fair access and ethical governance are necessary.
3. Skills: Critical to empowering individuals and communities to participate in and benefit from AI-driven economies.
Readiness for Frontier Technologies Index – Composition
UNCTAD's index assesses countries' preparedness for adopting advanced technologies based on five key indicators:
1. ICT Deployment – Availability and spread of information and communication technologies.
2. Skills – Availability of skilled labor and quality of education.
3. Research and Development (R&D) Activity – National focus on innovation and scientific progress.
4. Industrial Capacity – Strength of manufacturing and production ecosystems.
5. Access to Finance – Ability of startups and businesses to obtain funding.
Key Findings – 2025 Technology and Innovation Report
1. India’s Rank: India rose to 36th place out of 170 countries in 2024, up from 48th in 2022.
2. India’s Performance in Indicators:
• 3rd in R&D Activity – Reflects strong scientific base and innovation potential.
• 10th in Industrial Capacity – Shows manufacturing and production strength.
• 99th in ICT Deployment, 113th in Skills, and 70th in Access to Finance – Indicates areas needing policy focus and investment.
3. Improvement in Human Capital: Countries like India, Bhutan, Morocco, Moldova, and Timor-Leste improved due to increased years of schooling and high-skill job creation.
4. Outperforming Developing Nations: India, along with Brazil, China, and the Philippines, performs above expectations in tech readiness based on income levels.
5. GDP Not a Sole Determinant: The report highlights that income level doesn’t fully explain technology readiness—countries with strong policies and ecosystems can still excel.
Global AI Investment Trends
1. United States leads with $67 billion in private AI investments in 2023.
2. China follows with $7.8 billion, and India ranks next with $1.4 billion—the only developing countries with substantial private AI investment.
3. These investments reflect growing confidence in AI ecosystems in these countries.
Impacts of AI on Employment and Economy
1. AI has the potential to affect up to 40% of global jobs—either through automation or transformation.
2. There are both risks and opportunities: While some jobs may disappear, AI also creates new industries and roles.
3. The report calls for urgent investments in reskilling and upskilling to make labor markets resilient and inclusive.
Role of Manufacturing in AI-Driven Development
1. Countries like India, China, and Brazil demonstrate how technology-led industrialization can reduce poverty.
2. AI adoption in industries can drive productivity, innovation, and economic inclusion.
AI and Technology Ecosystem in India
1. R&D Leadership: India ranks 3rd globally in R&D activity, particularly in AI research.
2. AI Investment: With $1.4 billion in AI investment in 2023, India is among the top 10 nations in private AI funding.
3. Open-Source Participation: India is one of the leading contributors to AI-related projects on GitHub, after the U.S. and China.
4. Developer Talent: India hosts over 13 million developers, making it the second largest GitHub developer community.
5. Cloud Infrastructure: India ranks among the top 10 countries in cloud service ecosystems, alongside global tech leaders.
India’s Technology Specialization
1. India shows high specialization in nanotechnology, measured through patent data.
2. This demonstrates India's ability to contribute to frontier and emerging tech fields.
Government Initiatives to Strengthen AI Ecosystem in India
1. AI Centres of Excellence: Established through partnerships between the government, academia, and industry. Notable examples:
• IIT Hyderabad and IIT Kharagpur
• Kotak–IISc AI-ML Centre
• NASSCOM Centre of Excellence for AI and Data Science
2. India AI Mission (2024): Launched to build a robust national AI ecosystem, with key goals:
• Lower entry barriers to AI learning and deployment.
• Expand AI-related courses in higher education.
• Focus on tier-2 and tier-3 cities to democratize AI education and innovation.
About UNCTAD (United Nations Conference on Trade and Development)
1. Established in 1964 by the UN General Assembly; headquartered in Geneva, Switzerland.
2. Consists of 195 member states working together for sustainable and inclusive growth.
3. Plays a key role in helping developing countries navigate globalization through balanced policies.
UNCTAD's Key Objectives
1. Promote Inclusive Growth: Help developing nations reduce inequalities and access the benefits of globalization.
2. Technical Assistance: Offer support in trade, finance, investment, and technology to achieve the SDGs.
3. Consensus-Building: Encourage dialogue between governments, private sector, and civil society to shape development-friendly policies.
4. Aligns closely with:
• UN Sustainable Development Goals (SDGs)
• Addis Ababa Action Agenda on Financing for Development (2015)
UNCTAD's Core Functions
1. Address Development Challenges: Offers strategies and policy advice for economic resilience.
2. Support Trade Integration: Enhances countries’ ability to engage in fair global trade.
3. Diversify Economies: Helps nations reduce reliance on raw commodities.
4. Enhance Digital Access: Promotes technology and innovation for inclusive growth.
5. Strengthen Financial Stability: Encourages sustainable finance and risk management.
6. Improve Trade Efficiency: Supports measures to reduce delays and costs in cross-border trade.
UNCTAD’s Flagship Reports
1. Technology and Innovation Report
2. Trade and Development Report
3. Digital Economy Report
4. World Investment Report
5. Economic Development in Africa Report
Source: https://www.thehindu.com/news/national/india-ranks-tenth-with-14-billion-private-investment-in-artificial-intelligence-united-nations-report/article69411505.ece