India Rises to Tech Powerhouse Status, Behind Only US and China in AI

India has catapulted to the forefront of global technology research, ranking among the top five countries in 45 out of 64 critical technologies for 2023, up from 37 last year. The latest Critical Technology Tracker report by the Australian Strategic Policy Institute highlights India’s impressive rise, placing the country in the second position for seven key technologies.

This year, India has surpassed the US in two cutting-edge research fields: biological manufacturing and distributed ledger technology. Notably, in the realm of artificial intelligence (AI), India now ranks just behind the US and China in several crucial areas, including advanced data analytics, AI algorithms, machine learning, and natural language processing.

This marks a significant advancement from 2003–2007, when India was among the top five in only four technologies. The tracker spans a broad spectrum of fields, such as space, defense, energy, AI, robotics, biotechnology, and quantum technology, analyzing high-impact research based on the top 10 percent of the most-cited papers to gauge a country’s research performance and technological potential.

China leads globally, dominating 57 out of 64 technologies, while the US, which previously led in 60 areas between 2003 and 2007, now holds the top spot in just seven, including quantum computing and medical countermeasures. The UK has seen a decline, now ranking in the top five for 37 technologies, down from 44 last year, while the European Union excels in small satellites and gravitational force sensors and is second in 30 other fields. Germany remains strong with top five placements in 27 technologies.

Although India has not yet taken the lead in any critical technology, it holds the second position in several areas, including high-specific machine processes, advanced composite materials, and biofuels. India also ranks third in technologies such as electronic warfare, autonomous underwater vehicles, and advanced aircraft engines.

Despite these achievements, the report highlights a key challenge: India’s research landscape lacks standout institutions. Over the past two decades, only five Indian institutions have been consistently among the top performers across these technologies.

The report suggests that this fragmentation in research excellence could hinder India’s ability to attract global research talent and retain its own scientists and technologists. “This lack of standout performers may be limiting India’s ability to draw foreign research talent and retain its own,” the report notes.