IMF AI Preparedness Index (AIPI)
Rising AI investments
Over the past decade, the number of newly funded AI companies has quadrupled globally.
AI-related investments have increased 15-fold, indicating rapid technological expansion.
Unequal starting points in Asia-Pacific
The UN report highlights that the region’s transition to AI begins from highly unequal baselines.
AI Preparedness Index varies widely:
Advanced economies (e.g., Singapore, South Korea, China) score above 70 percent.
Fragile and low-income economies score below 20 percent.
Preparedness is assessed by the IMF based on:
Digital infrastructure
Human capital and labour market systems
Innovation and global integration
Regulation and ethical frameworks
Hard infrastructure gaps
Many Asia-Pacific countries lack:
Reliable and clean electricity
Adequate cooling resources and computing capacity
Strong data systems and widespread connectivity
Internet penetration has grown rapidly, but significant access disparities persist across countries and across social groups.
Soft infrastructure gaps
Includes human capital development, robust public institutions, and legal-regulatory systems ensuring secure and fair digital access.
Skill shortages remain a key challenge across the region, limiting equitable participation.
Internal inequalities within countries
Income and wealth concentration in the top 10 percent remains high across the region.
Deep domestic disparities layer on top of regional divides, amplifying the risk that AI benefits accrue disproportionately to already-advantaged groups.
Gendered impacts of AI transition
Women in the Asia-Pacific face greater exposure to AI-driven automation than men.
Reflects existing occupational segregation and gender gaps in STEM, digital access, and formal employment.
IMF AI Preparedness Index (AIPI)
India’s Position
Rank: 72 out of 174 countries.
Category: Emerging market economy.
Assessment Parameters
Digital infrastructure
Human capital and labour market readiness
Innovation ecosystem and economic integration
Regulation and ethics
Key Insight
India shows moderate preparedness, with strengths in digital public infrastructure but gaps in skills, advanced computing capacity, and regulatory readiness for frontier AI.
UNCTAD Technology and Innovation Report 2025
India’s Global Readiness for Frontier Technologies
Rank: 36th globally (improved from 48th in 2022).
Indicates significant progress in the adoption and integration of advanced technologies such as AI, robotics, and IoT.
Private AI Investment
10th globally with USD 1.4 billion investment in 2023.
Demonstrates strong market momentum and growing confidence in India’s AI ecosystem.
Prelims Practice MCQs
Q. Consider the following statements regarding the IMF’s AI Preparedness Index (AIPI), 2024:
The Index assesses countries on digital infrastructure, human capital, innovation capacity, and regulatory frameworks.
India is ranked within the top 50 countries in the 2024 AIPI.
AIPI categorises India as an emerging market economy.
Which of the statements given above is/are correct?
A. 1 and 2 only
B. 1 and 3 only
C. 2 and 3 only
D. 1, 2 and 3
Answer: B
Explanation:
Statement 1 is correct: AIPI evaluates digital infrastructure, human capital, innovation, and regulation/ethics.
Statement 2 is incorrect: India ranks 72nd out of 174, not within the top 50.
Statement 3 is correct: The Index classifies India under emerging markets.
Q. With reference to the UNCTAD Technology and Innovation Report 2025, consider the following statements:
India’s rank in frontier technology readiness improved between 2022 and 2025.
India ranked among the top five countries globally in private AI investment in 2023.
The Report highlights India’s scientific strength and technology adoption potential.
Which of the statements given above is/are correct?
A. 1 and 2 only
B. 1 and 3 only
C. 2 and 3 only
D. 1, 2 and 3
Answer: B
Explanation:
Statement 1 is correct: India improved from 48th (2022) to 36th (2025).
Statement 2 is incorrect: India is 10th globally, not in the top five.
Statement 3 is correct: The Report emphasises India’s scientific capabilities and tech adoption strengths.
Q. Consider the following statements:
India’s private AI investment in 2023 exceeded USD 1.4 billion.
India’s improvement in frontier technology readiness ranking indicates faster adoption of advanced technologies.
AIPI and UNCTAD both classify India as a high-income digital economy.
Which of the statements given above is/are correct?
A. 1 and 2 only
B. 2 only
C. 2 and 3 only
D. 1, 2 and 3
Answer: B
Explanation:
Statement 1 is incorrect: Investment was USD 1.4 billion, not higher.
Statement 2 is correct: Improved ranking (48 to 36) indicates accelerated adoption and capability building.
Statement 3 is incorrect: AIPI categorises India as an emerging market, not a high-income economy; UNCTAD does not classify India as such either.