According to a report by J.P. Morgan, India has emerged as the world’s third-most artificial intelligence (AI)-ready country, behind only the United States and China, while remaining one of the least concentrated equity markets globally. The report highlighted India’s growing position in the global AI landscape and its evolving role in capital markets.
J.P. Morgan also observed that India remains one of the world’s least concentrated equity markets, in contrast to the United States, where the ten largest companies account for an increasingly significant share of the S&P 500.
The report underscored the United States’ continued leadership in AI infrastructure, semiconductor technologies and productivity gains driven by generative AI. It noted that AI-related productivity has accelerated significantly in the information and data-processing sectors following the emergence of generative AI tools.
In the semiconductor segment, the report said Nvidia continues to dominate the AI accelerator market, although competition is increasing from custom chips developed by hyperscalers including Google, Amazon, Microsoft and Meta.
The report also highlighted the rapid progress of Chinese AI models, noting growing enterprise adoption driven by lower costs. It cited OpenRouter data showing a sharp increase in API calls to Chinese models and said that by April 2026, leading Chinese open-weight models were approaching the performance of closed frontier models while costing 10–50 times less per token.
Despite China’s advances, J.P. Morgan maintained that the United States remains the global leader in AI innovation, infrastructure and investment, while cautioning that policy restrictions and supply chain vulnerabilities could affect its long-term leadership.
For India, the report suggests improving AI readiness and a strengthening position in global technology markets, although it noted that the country still trails the United States and China in overall AI capabilities and semiconductor ecosystem development.