Though India has the world’s second-largest talent pool and accounts for about 26 per cent of global AI users, the country lags in private AI investment capital and compute infrastructure, the report noted
India has emerged as the fifth most digitalised economy globally in 2026, overtaking major developed economies such as Germany, France, Japan and Canada in digital performance, a report by the Indian Council for Research on International Economic Relations (ICRIER) and the Prosus Centre for Internet and Digital Economy (IPCIDE) said.
In the connect, harness, innovate, protect, and sustain (CHIPS) index for artificial intelligence (AI), India ranks fourth overall, with only the United States, China and Singapore ranking above it, according to the State of India’s Digital Economy report for 2026.
Though India has the world’s second-largest talent pool and accounts for about 26 per cent of global AI users, the country lags in private AI investment capital and compute infrastructure, the report noted.
“India’s long-term competitiveness depends on mobilising risk capital, expanding compute access, strengthening university-startup linkages and building AI commercialisation pathways,” the report said.
First Published: May 29 2026 | 7:41 PM IST
