India’s innovation landscape has recorded significant and sustained progress, with the country improving its rank to 38th in the Global Innovation Index (GII) 2025 from 66th in 2019, according to the Economic Survey. The Survey underlined that focused government initiatives across manufacturing, research, startups, and technology have strengthened India’s position as an emerging global hub for innovation and industrial growth.
Key highlights
- The Economic Survey highlighted the pivotal role of the Production Linked Incentive (PLI) Scheme in boosting domestic manufacturing, particularly in the smartphone sector.
- Several global mobile phone manufacturers have expanded or shifted production to India, reinforcing its status as a key manufacturing destination.
- As of September 2025, investments under the PLI scheme have exceeded ₹2 lakh crore, resulting in additional production and sales worth over ₹18.70 lakh crore.
- The scheme has also created employment opportunities for more than 12.60 lakh people, both directly and indirectly.
- The Survey further noted that India now leads innovation performance among lower-middle-income countries and ranks first in the Central and Southern Asia region.
- Major cities such as Bengaluru, Delhi, and Mumbai feature among the world’s top 50 innovation-intensive clusters. India’s overall innovation output has risen sharply, with the country emerging as a strong global player in intellectual property.
- In 2024, India ranked fourth globally in trademark filings, sixth in patents, and seventh in industrial designs. The Economic Survey also pointed to rapid progress in the semiconductor sector, with ten manufacturing and packaging projects approved across six states, involving investments of around ₹1.60 lakh crore as of August 2025.
What is Global Innovation Index?
- The Global Innovation Index (GII) is an annual ranking that measures the innovation performance of countries and economies across the world.
- Published by the World Intellectual Property Organization (WIPO) in collaboration with leading academic and research institutions, the index evaluates innovation using a broad framework of around 80 indicators.
- These indicators are grouped under key pillars such as institutions, human capital and research, infrastructure, market sophistication, business sophistication, knowledge and technology outputs, and creative outputs.
- The GII provides policymakers, researchers, and students with a comprehensive view of how innovation ecosystems function, helping countries assess strengths, identify gaps, and design strategies to foster sustainable and inclusive innovation-driven growth.
What is PLI Scheme?
- The Production Linked Incentive (PLI) Scheme is a flagship initiative of the Government of India aimed at boosting domestic manufacturing, enhancing exports, and reducing import dependence.
- Introduced in 2020, the scheme provides financial incentives to eligible companies based on incremental production over a base year. It covers multiple strategic sectors such as electronics, pharmaceuticals, automobiles, semiconductors, textiles, solar modules, and food processing.
- By encouraging large-scale manufacturing and attracting global and domestic investment, the PLI Scheme seeks to strengthen India’s industrial capabilities, create employment, integrate Indian firms into global value chains, and support the broader vision of Atmanirbhar Bharat by making India a competitive manufacturing hub.
