UNCTAD Frontier Technologies Readiness Index

Recently, India and China emerged as the only developing nations with substantial private investments in Artificial Intelligence (AI). A recent UN report, UNCTAD Frontier Technologies Readiness Index, brought into light India’s advancements in technology readiness and AI capabilities, placing it among the top countries globally. This growth is crucial as AI is anticipated to influence global economies and job markets.

UNCTAD Frontier Technologies Readiness Index

India, Bhutan, Morocco, Moldova, and Timor-Leste improved due to better human capital (more education + high-skill jobs). India ranks 36th on the UNCTAD Frontier Technologies Readiness Index, improving from 48th in 2022. This index evaluates a nation’s preparedness in ICT deployment, skills, R&D activity, and financial access.

Global AI Investment Landscape

The United States dominates global AI investments, accounting for 70% of total funding at $67 billion in 2023. China follows with $7.8 billion, while India ranks tenth with $1.4 billion. This investment disparity illustrates the ongoing challenges developing nations face in accessing AI resources.

Impact of AI on Employment

AI market is projected to reach $4.8 trillion by 2033. It is projected to affect 40% of global jobs, creating concerns about automation and job displacement. The report emphasises that while AI can enhance productivity, it may also exacerbate inequality. Reskilling and upskilling are essential to ensure that AI creates new job opportunities rather than eliminating existing ones.

Role of Government and Policy

India’s government has played a very important role in encouraging AI development by collaborating with the private sector and academia. Initiatives like the India AI Mission aim to enhance the AI ecosystem. This includes increasing access to AI education and establishing centres of excellence in technology.

Technological Specialisation Among Nations

Different countries exhibit specialisation in specific technological fields. India is noted for its advancements in nanotechnology, while Germany leads in wind energy. This specialisation reflects each country’s unique economic strengths and resource allocation.

Industrialisation and Economic Growth

Industrialisation remains a key driver of economic development. The experiences of Brazil, China, and India demonstrate how manufacturing can reduce poverty and stimulate growth. This sector generates employment and encourages advancements across various industries.

Challenges Ahead for Developing Nations

Despite improvements, developing countries must address the challenges posed by AI and frontier technologies. The concentration of AI infrastructure in a few economies limits broader access. Countries like India and China must continue to innovate and invest in technology to remain competitive.

Month: Current Affairs - April, 2025

Category: Science & Technology Current Affairs