India has made remarkable strides in the field of innovation, moving up from 48th position in 2020 to 38th in 2025 among 139 global economies, according to the World Intellectual Property Organization (WIPO). This marks a significant improvement, reflecting India's growing capabilities and investments in innovation.
India's Rank: India ranks 38th, an impressive jump from 81st in 2015. It is also ranked 1st among lower-middle-income economies and in Central & Southern Asia.
Strengths: India excels in Knowledge & Technology Outputs (ranked 22nd) and Market Sophistication (ranked 38th).
Weaknesses: Areas needing improvement include Business Sophistication (64th), Infrastructure (61st), and Institutions (58th).
1st: Switzerland
2nd: Sweden
3rd: United States
4th: South Korea
5th: Singapore
10th: China (for the first time in the top 10)
1st: Shenzhen-Hong Kong-Guangzhou (China)
2nd: Tokyo-Yokohama (Japan)
Labor Productivity: Increased by 2.5% globally in 2024.
Life Expectancy: Reached 73 years.
Extreme Poverty: Reduced to 817 million (half of what it was in 2004).
Technological Gains: Supercomputing efficiency and battery prices improved, but progress in wind power and genome sequencing has slowed.
India’s investment in Research & Development (R&D) is about 0.65% of GDP, which is far below countries like China (2.43%), South Korea (2.5%), and Brazil (1.15%). This gap in funding, particularly in private-sector R&D, remains a significant barrier to India’s innovation ecosystem.
6th in the World: India is the 6th largest filer of patents globally.
Patent-to-GDP Ratio: India’s patent-to-GDP ratio grew significantly from 144 in 2013 to 381 in 2023, indicating a rising correlation between patent activity and economic output.
India has implemented several key initiatives:
Startup India, Make in India, and the Production Linked Initiative (PLI) schemes.
The Fund of Funds for Startups (FFS), with a corpus of Rs 10,000 crore, and the Rs 1 lakh crore Research, Development, and Innovation (RDI) scheme aim to boost private sector R&D.
Startup India Seed Fund Scheme provided Rs 945 crore in 2023 for seed funding.
India now has over 100 unicorns, making it the 3rd largest unicorn ecosystem in the world.
The cleantech sector is particularly thriving, with leading startups like Ather Energy and Ola Electric playing a major role in India's transition to clean energy.
Over 45% of DPIIT-recognized startups have emerged from tier-2 and tier-3 cities, thanks to initiatives like Atal Tinkering Labs (ATLs), which are decentralizing innovation efforts.
India’s Gross Expenditure on R&D (GERD) is around 0.7% of GDP, much lower than the United States (3.5%) and South Korea (4.9%). This highlights a critical funding gap, especially in areas like deep-tech research, which require long-term capital.
Private Sector Contribution: The private sector contributes only 36.4% to R&D funding (2020–21), which is much lower than in advanced economies.
Lack of Industry-Academia Collaboration: There is a gap between academic research and industry needs, limiting interdisciplinary collaboration and the commercialization of research.
India has historically concentrated R&D efforts on defense and space technology. While these areas have achieved great success (e.g., Agni missile systems, ISRO's space missions), there has been limited investment in emerging sectors like semiconductors and advanced materials.
Many Indian industries prefer importing proven technologies instead of investing in high-risk, long-gestation R&D for indigenous technologies.
Startups tend to focus on business model innovations in IT services and e-commerce, rather than foundational deep-tech research.
While India has made strides in institutions like DRDO, ISRO, and BARC, technology transfer to the market is hindered by procedural delays, intellectual property challenges, and lack of streamlined processes.
India needs to significantly increase its R&D spending over the next decade, especially by boosting private sector and philanthropic contributions. The Rs 1 lakh crore Innovation Fund must be deployed effectively within the next 3-5 years to accelerate deep-tech research.
Higher Education Institutions (HEIs) can play a pivotal role in expanding upstream research and driving knowledge frontiers that industry can commercialize. Encouraging collaborative projects between universities and industry will bridge the gap between research and application.
India should establish sector-specific innovation hubs in emerging fields like AI, semiconductors, and clean energy, linking government, academia, and industry. These hubs can provide shared resources such as testing facilities, prototype labs, and venture funding.
Industry councils focused on specific sectors can guide policies, identify funding gaps, and channel resources to critical innovation areas. For example, a CleanTech Council could prioritize areas like solar energy, electric vehicles (EVs), and energy efficiency.
Fostering regional innovation clusters in non-metro areas can create localized ecosystems that promote entrepreneurship and innovation. These clusters can support rural agri-tech, social enterprises, and startups with funding, mentorship, and infrastructure.
India has made substantial progress in innovation, climbing to 38th in the GII 2025, but to maintain this momentum, it must overcome barriers like inadequate R&D investment, a disconnected innovation ecosystem, and a risk-averse industrial culture. By boosting investment, enhancing collaboration, and focusing on emerging technologies, India can transform from a startup hub into a global innovation leader.
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We provide offline, online and recorded lectures in the same amount.
Every aspirant is unique and the mentoring is customised according to the strengths and weaknesses of the aspirant.
In every Lecture. Director Sir will provide conceptual understanding with around 800 Mindmaps.
We provide you the best and Comprehensive content which comes directly or indirectly in UPSC Exam.
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