India’s Innovation Ranking Records Major Global Jump
India’s position in the Global Innovation Index (GII) improved to 38th in the 2025 rankings, marking a significant rise from its standing a decade ago. Highlighted in the Economic Survey 2025–26, this advancement places India among the leading innovators in the lower-middle-income category and establishes it as the innovation leader in the Central and South Asian region. The improvement signals sustained progress in policy reforms, digital adoption, manufacturing expansion, and entrepreneurial growth.
The ranking also reflects India’s increasing role in global innovation networks as multinational companies diversify supply chains and technology investments toward emerging markets.
Why the Innovation Ranking Matters
The Global Innovation Index, compiled annually by international institutions, evaluates countries based on innovation inputs such as research investment, regulatory environment, and education, as well as outputs including patents, startups, and technology exports.
India’s steady rise in the rankings signals that innovation is becoming a central pillar of economic growth rather than a niche activity. Government-led manufacturing incentives, digital infrastructure expansion, and startup ecosystem support have together strengthened India’s innovation landscape.
Key Factors Behind India’s GII Rank Improvement Since 2015
India’s rise from the lower ranks in 2015 to its current position has been driven by multiple converging factors.
1. Manufacturing Incentives and Industrial Policy Push
The Production Linked Incentive (PLI) scheme, introduced to boost domestic manufacturing across sectors such as electronics, pharmaceuticals, and telecommunications, has played a major role. The program attracted substantial investments, increased production output, and boosted exports, especially in electronics manufacturing. India’s emergence as a significant smartphone production hub reflects the success of these policies.
2. Startup and Entrepreneurial Expansion
India’s startup ecosystem has expanded dramatically over the past decade. Government recognition programs, easier company registration processes, and increased venture capital funding have supported thousands of new technology ventures. Major cities including Bengaluru, Delhi, and Mumbai now rank among global innovation clusters, further strengthening India’s entrepreneurial credentials.
3. Surge in Intellectual Property Filings
India has also recorded a sharp rise in intellectual property activity. Patent and trademark filings have grown significantly, indicating increased research output and business innovation. Reforms simplifying filing procedures and improving awareness among startups and businesses have encouraged greater participation in intellectual property protection.
4. Digital Infrastructure and Technology Adoption
India’s digital public infrastructure—including Aadhaar, UPI payments, and widespread internet access—has created an ecosystem that enables rapid technology adoption. This has improved service delivery, promoted digital entrepreneurship, and strengthened ICT service exports, contributing to innovation outputs.
5. Research and Institutional Reforms
New initiatives to strengthen research funding and link universities with industry have also improved innovation capacity. Programs aimed at semiconductor manufacturing and deep-tech development are expected to further enhance India’s technological capabilities.
However, experts note that India’s overall research spending remains relatively low compared with leading innovation economies, signaling room for improvement.
Progress Visible, but Next Leap Requires Deeper Investment
India’s steady climb in global innovation rankings reflects the cumulative impact of policy support, entrepreneurial dynamism, and digital transformation. Yet, sustaining momentum will require higher investment in research, stronger collaboration between academia and industry, and support for deep-technology sectors. If these areas receive consistent attention, India can move beyond incremental gains and establish itself as a major global innovation powerhouse in the coming decade.
(With agency inputs)
