Can India’s AI dream survive a 90x funding cap with the US?

India’s rise as a global hub for artificial intelligence talent and Global Capability Centres (GCCs) has put the country at the center of the AI economy. But a stark disparity in funding compared with the United States raises a critical question: can India transform itself into an AI innovator, or will it remain primarily a supplier of talent to the rest of the world?

According to the Global Economic Outlook Report 2026 by 1 Finance, India attracted just $1.2 billion in private AI funding in 2024, compared with $109.1 billion in the US and $9.3 billion in China. The figures point to a nearly 90-fold gap between India and the world’s leading AI market.

The funding imbalance becomes even more pronounced over a longer horizon. Since 2013, cumulative private AI investments in the US have reached $470.9 billion, while India has attracted only $11.3 billion.

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AI talent boom powers GCC growth

The funding gap comes at a time when India’s GCC ecosystem is witnessing rapid growth and creating millions of high-paying jobs.

The report estimates that GCCs currently support 10.4 million jobs across direct, indirect and induced categories, including 2.1 million direct jobs. Direct employment is projected to increase by 40% to 2.8 million jobs by 2030.

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Export revenues from GCCs are also expected to rise significantly, increasing from $65 billion in FY24 to $110 billion by FY30. Their contribution to India’s GDP is projected to double from less than 1% to 2% during the period.

Yet, despite the robust employment outlook, the report suggests India may be capturing salaries rather than ownership in the AI economy.

“The GCC story is India’s strongest employment narrative right now and that’s precisely what makes the AI investment gap so uncomfortable,” said Animesh Hardia, Senior Vice President, Quantitative Research, 1 Finance.

“We’re producing the talent, but we’re not funding the ecosystem. That means Indian professionals are capturing wages, not equity, in the AI economy,” he said.

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AI adoption is accelerating

Artificial intelligence adoption among Indian GCCs has increased rapidly in recent years. Between FY19 and FY24, AI and machine learning usage rose from 65% to 86%, while cybersecurity adoption increased from 55% to 88%. Blockchain adoption jumped from 5% to 56%.

The demand for advanced skills is also driving salary growth.

Entry-level Generative AI engineers earn around ₹12 lakh annually, while professionals with more than eight years of experience command average salaries of ₹60 lakh a year. GCCs generally pay 12-20% more than traditional IT services firms, and AI and data science roles offer salary premiums of 30-50%.

Readiness remains a challenge

Despite the growing demand for AI talent, India’s broader AI ecosystem still has gaps. The country ranks 46th out of 109 nations in AI readiness, according to Coursera’s 2025 Global Skills Report cited in the study.

Meanwhile, AI capabilities themselves are advancing rapidly. The report noted that the length of tasks AI systems can complete with an 80% success rate has been doubling roughly every seven months, changing job requirements faster than many educational and training programmes can adapt.

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The stakes are high. Estimates from NITI Aayog cited in the report suggest AI could eliminate 2 million technology jobs over the next five years. However, with the right investments and policy support, India could create as many as 4 million new AI-linked roles.

For India, the challenge is no longer just producing AI talent. The bigger question is whether the country can build the capital, infrastructure and innovation ecosystem necessary to convert that talent into long-term technological leadership.