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India’s Innovation Surge Lifts Global Ranking Sharply

Why in the News?

The Economic Survey 2025-26 reveals that India has climbed to the 38th rank in the Global Innovation Index (GII) 2025, up from 66th in 2019, reflecting rapid progress driven by advancements in manufacturing, startups, research, and technology-led reforms.

India’s Rising Innovation Performance and Global Standing

  • India’s innovation ecosystem has recorded steady and sustained improvement, resulting in a sharp rise in its Global Innovation Index (GII) ranking over six years.
  • The leap from 66th (2019) to 38th (2025) position highlights India’s transition from a technology adopter to an emerging global innovation hub.
  • India now leads among lower-middle-income countries in innovation performance, underscoring its commitment to inclusive and scalable innovation.
  • Regionally, India ranks first in Central and Southern Asia, strengthening its leadership role in driving innovation across the Global South.
  • Major Indian cities such as Bengaluru, Delhi, and Mumbai feature among the top 50 global innovation clusters, powered by thriving startup ecosystems, R&D institutions, and a pool of skilled talent.
  • Overall innovation output, including technology diffusion and knowledge creation, has increased significantly, positioning India as a key player in the global innovation landscape.

Role of Manufacturing, PLI, and Technology Push

  • The Production Linked Incentive (PLI) Scheme has been a major catalyst in boosting domestic manufacturing, especially in electronics and smartphone production.
  • Several global mobile phone manufacturers have shifted production bases to India, strengthening its role in global value chains and enhancing its manufacturing competitiveness.
  • As of September 2025, actual investments under PLI exceeded ₹2 lakh crore, generating additional production and sales of over ₹18.70 lakh crore.
  • The scheme has created employment for more than 12.60 lakh people, both directly and indirectly, supporting inclusive growth and skill development across sectors.
  • India has also emerged as a key player in intellectual property creation, reflecting deeper innovation capabilities and a maturing R&D ecosystem.
  • In 2024, India ranked 4th in trademark filings, 6th in patents, and 7th in industrial design registrations globally, showcasing its growing prowess in innovation and intellectual property.

Innovation Ecosystem & Key Facts
– Global Innovation Index (GII): An annual ranking assessing countries on innovation inputs and outputs.
– PLI Scheme: Incentivizes firms based on incremental production, boosting manufacturing competitiveness and attracting foreign investment.
– Innovation clusters: Geographic concentrations of firms, startups, universities, and research centers fostering collaboration and innovation.
– Semiconductor sector: Strategic for technology sovereignty and supply-chain resilience in the global tech landscape.
– As of August 2025, 10 semiconductor manufacturing and packaging projects were approved across six States, involving investments of about ₹1.60 lakh crore, boosting India’s position in the global semiconductor market.