World Bank's Dr Michael Kremer: India's AI progress a model for developing economies
Synopsis
Key Takeaways
Dr Michael Kremer, Chief Economist and Senior Vice President of the World Bank Group, on Thursday, 8 October 2026, said that India's rapid advances in artificial intelligence are not merely solving domestic challenges but are offering a replicable blueprint for the wider developing world. He was speaking at the launch of the World Bank Group's 'World Development Report 2026: The Promise of Artificial Intelligence' in New Delhi.
India's AI Monsoon Model Goes Global
Dr Kremer highlighted India's AI-based monsoon forecasting system as a standout example for other nations. Working through its meteorological agencies and the Ministry of Agriculture, the government tested and integrated multiple AI models — including open-access tools — and delivered forecasts to millions of farmers via text, voice, and AI-powered advisories. Crucially, the system successfully predicted the unusual 2025 monsoon. Ethiopia is now reportedly following India's approach, underscoring the model's international resonance.
Dr Kremer used this example to argue that where commercial incentives are weak but social potential is high, governments have a decisive role to play. 'For the scale-up of AI solutions, we need a full stack approach — not just elements of the software but humans and institutional elements that come along with it,' he said.
What the World Development Report 2026 Says
The report argues that AI can widen access to expertise, raise productivity, and improve service delivery across developing economies. It notes that AI-enabled tools are already being deployed in medical screening, agricultural decision-making, and education, extending scarce expertise to larger sections of the population. However, the report cautions that these gains rest on strong foundations — reliable electricity and connectivity, computing infrastructure, quality data, skilled workforces, and capable institutions.
India's Democratic AI Push — Key Figures
Union Minister Ashwini Vaishnaw emphasised India's approach of democratising technology to ensure the benefits of AI reach citizens, enterprises, and institutions across the country. He cited concrete outcomes: in Baramati, sugarcane yields rose by 40 per cent with 30 per cent less water and fertiliser — delivered entirely through voice on a phone to farmers who have never used a computer. In healthcare, TB detection has reportedly increased by 35 per cent. 'Examples like these can change lives across the Global South and the world,' Vaishnaw said.
The IndiaAI Mission: Seven Pillars of an Ecosystem
India's ambitions are anchored in the IndiaAI Mission, which is building a comprehensive AI ecosystem across seven pillars: IndiaAI Compute Capacity, the IndiaAI Innovation Centre for indigenous foundation models, the IndiaAI Datasets Platform (AIKosh), the IndiaAI Application Development Initiative, IndiaAI FutureSkills, IndiaAI Startup Financing, and Safe and Trusted AI. The multi-pillar structure signals that India is moving beyond individual deployments toward systemic infrastructure capable of sustaining large-scale AI adoption.
Wider Significance for the Global South
India has emerged as a significant ecosystem for the development and deployment of AI, with applications spanning healthcare, agriculture, education, governance, financial services, and other sectors of public and economic importance. The World Bank's endorsement of India's model at a flagship global report launch carries particular weight, as it positions India not merely as an AI consumer but as a source of transferable governance and deployment frameworks for the developing world. How quickly other nations can adapt India's institutional stack — and whether India's own foundations hold as AI scales — will determine the durability of this model.