Wednesday 01 / October / 2025
New Delhi: India’s innovation journey reached a new milestone in 2025 with the country rising to the 38th position in the Global Innovation Index (GII), assessed across 139 economies by the World Intellectual Property Organization (WIPO). Over the past decade, India has steadily climbed from the 81st spot in 2015 to 48th in 2020, 40th by 2022, 39th in 2024, and now 38th in 2025. This trajectory demonstrates structural progress in building a dynamic innovation ecosystem.
India now stands as the top innovator among lower-middle-income economies and ranks first in Central & Southern Asia. The country’s leadership is reflected in strong performance in critical innovation outputs: India ranks first in ICT services exports, fourth in late-stage venture capital deals, eighth in intangible asset intensity, and eleventh in unicorn valuations. These successes are proof that India is no longer an aspirant but an active participant in the global innovation race.
This rise is a source of national pride. It underscores that policies, reforms, investments, and the relentless energy of India’s entrepreneurs, startups, and research institutions are translating into measurable global recognition. Innovation is now integral to India’s economic identity, giving it both prestige and competitiveness.
Steady Climb: Year-on-Year Progress in GII
India’s rise in the GII is a story of consistency and resilience. From its 48th rank in 2020, India has improved steadily each year, defying global uncertainties. In 2025, it reached 38th place, reflecting a decade-long upward trajectory that signals institutional and ecosystem maturity.
The Global Innovation Tracker, which supplements the GII, highlights that India is improving in most short-term indicators, including scientific publications and knowledge outputs. While at inputs level such as infrastructure, institutions, and business sophistication India is ranked 52nd, the nation excels in outputs, securing 32nd place. This divergence shows that India’s innovation outputs such as research, patents, technology transfer, and startup dynamism are stronger than its input framework, a rare achievement among developing economies.
The steadiness of India’s climb sets it apart. Many economies witness fluctuations, but India’s progress has been incremental and durable. It is proof of long-term reforms and an innovation-first mindset across government, academia, and industry.
Innovation & Nation-Building: Atmanirbhar Bharat, Manufacturing & Viksit Bharat
India’s innovation surge is closely tied to its vision of Atmanirbhar Bharat (self-reliant India), its ambition to emerge as a global manufacturing hub, and its mission of Viksit Bharat (a developed India). These are not isolated slogans but interconnected strategies driven by innovation.
Through policies like the Production Linked Incentive (PLI) schemes and Make in India, the country has sought to move from low-value assembly to high-value, design-intensive, technology-driven manufacturing. India’s progress in the GII shows that these strategies are working. Indigenous capabilities in sectors such as semiconductors, defence technology, space, biotech, and clean energy are maturing, reducing dependency on external technologies and fostering resilience.
The innovation momentum also supports India’s aspiration for Viksit Bharat. Breakthroughs in healthcare, fintech, climate technologies, and digital infrastructure are making development more inclusive and sustainable. Innovation is no longer the by-product of growth but the very foundation on which India’s future economic and social progress relies.
Where India Stands: Global, Asia & South Asia Perspectives
At the global level, India’s 38th place positions it as a credible innovation power among emerging economies. While global leaders such as Switzerland, the United States, and South Korea dominate the top, India is steadily narrowing the gap and carving out its space in the innovation order.
At the Asian level, India competes with some of the world’s leading innovation giants such as China, Japan, and Singapore. India’s rise is striking, especially considering the scale and diversity of its economy.
In South Asia, India’s leadership is unchallenged. Neighbouring economies lag far behind, and India’s position as the regional innovation anchor strengthens its influence. With globally recognized innovation clusters in Bengaluru, Delhi, Hyderabad, and Mumbai, India is not only lifting its national score but also competing with global hubs on cluster-to-cluster performance. This dual achievement, regional dominance and global recognition, makes India’s innovation story unique.
What Drives India’s Innovation Surge
India’s innovation trajectory is driven by a set of interwoven forces. A booming startup ecosystem, with more than 100 unicorns and thousands of high-growth ventures, has made India one of the largest startup hubs globally. Simultaneously, deep digital infrastructure, massive internet penetration, mobile adoption, and fintech innovation has enabled ideas to scale rapidly.
Policy reforms in intellectual property rights, ease of doing business, and targeted funding have provided a supportive framework. Universities and research institutions are increasingly contributing to global scientific output, while strong linkages between industry and academia are nurturing applied innovation. India’s innovation clusters act as magnets of talent, capital, and ideas, while global linkages through exports and international collaborations are injecting dynamism into the ecosystem. The synergy of startups, policy, human capital, and global integration has created a feedback loop that powers India’s continued rise in the GII.
Sharpened Edge: India’s Global Competitiveness
Innovation directly enhances India’s competitiveness in the global economy. The country is becoming more attractive for foreign investment in knowledge-intensive and technology-rich sectors. Its export profile is shifting toward high-value services and integrated technology solutions, giving it a stronger foothold in global value chains.
At a time when global supply chains are being restructured, India’s innovation capacity makes it a preferred destination for manufacturing, R&D, and design investments. Stronger domestic innovation also reduces dependence on imports, strengthens strategic resilience, and improves the trade balance. Importantly, productivity gains fueled by innovation are permeating every sector, from agriculture and logistics to energy, health, and governance, making India a more competitive economy across the board.
Leading the New Global Economic Order
The global order is shifting, and technology is paramount. India’s rise in the innovation index gives it a strategic advantage in this transformation. As a credible “innovation middleweight,” India is emerging as a partner of choice for countries in the Global South, sharing its experiences in affordable technologies, digital public goods, and scalable innovation models.
In the era of geopolitics centred on semiconductors, AI, quantum technologies, and clean energy, India is no longer just a technology consumer. Its growing innovation platform allows it to co-create, negotiate, and set global standards. This strengthens India’s voice in trade, digital governance, and multilateral science forums, while also diversifying the global innovation landscape away from a North-dominated order.
Futuristic Outlook: R&D, Innovation and Startups
Looking ahead, India hold potential to break into the top 20 of the Global Innovation Index in the next 5 to 10 years. To achieve this, India is focused on frontier technologies such as artificial intelligence, biotechnology, quantum computing, green hydrogen, and space technologies. Bridging input-side gaps such as infrastructure, regulatory clarity, patient capital, and research facilities.
India’s startups now moves beyond scale to global leadership, with stronger support for deep-tech ventures. Academia-industry collaboration, technology commercialization, and grassroots innovation diffusion into smaller towns and rural areas is spreading. Moreover, global cooperation in R&D and standards-setting help India shape, not just follow, global trends.
India’s rise from 48th in 2020 to 38th in 2025 in the Global Innovation Index reflects years of structural reforms, ecosystem building, and entrepreneurial resilience. Innovation is now woven into the fabric of India’s development journey, supporting Atmanirbhar Bharat, fuelling manufacturing growth, and propelling the vision of Viksit Bharat. More investments in frontier research will strengthen its innovation inputs as innovation is inclusive, diffused, and globally connected. Going ahead, India will not only continue its climb but will also reshape the contours of the global innovation landscape. This moment of pride is not the peak but the beginning of a new era where innovation becomes India’s enduring identity in the dynamic global eco-system.
