Datanomics: India's AI moment faces a compute and capital reality check

India shines as a global AI talent hub, but weak compute infrastructure and limited investment expose gaps that could constrain its ambition to compete with the US and China

As the AI summit in New Delhi — the fourth of its kind and the first hosted by India — brings together world leaders, the spotlight is firmly on how nations balance innovation with regulation. For India, the moment presents both opportunity and a reality check. Data reveals a mixed picture of strengths and structural gaps within its AI ecosystem.

 

Talent powerhouse, infrastructure-laggard

 

India ranks 10th overall in the 2024 Tortoise Global AI Index. Its standout strength is talent, where it ranks second globally, alongside a strong performance in the operating environment (third). However, infrastructure is a major weakness at 68th place, limiting its ability to compete with the US and China. 

 

Compute capacity gap

 

India accounts for just 1 per cent of the world’s top 500 high-performance computing (HPC) systems and capacity. In contrast, the US controls 35 per cent of systems and 48 per cent of total capacity. 

 

Limited share in AI investment flows

 

India attracts only 3 per cent of global venture capital investment in AI training data. The US leads with 56 per cent, followed by China (17 per cent) and the EU (15 per cent).