India’s innovation landscape has made remarkable strides in recent years, climbing to 38th place in the Global Innovation Index (GII) 2025, up from 66th in 2019, according to the latest Economic Survey. The report attributes this growth to government initiatives in manufacturing, research, startups, and technology, positioning India as an emerging global hub for innovation and industrial development.
The survey highlighted the Production Linked Incentive (PLI) Scheme as a key driver of domestic manufacturing growth, particularly in the smartphone industry. Several global mobile phone manufacturers have shifted production to India, strengthening the country’s role as a major manufacturing hub. By September 2025, investments under the PLI scheme exceeded ₹2 lakh crore, resulting in additional production and sales worth over ₹18.70 lakh crore. The initiative has also created over 12.60 lakh jobs, both directly and indirectly.
India now leads lower-middle-income countries in innovation and ranks first in the Central and Southern Asia region. Cities like Bengaluru, Delhi, and Mumbai are recognized among the world’s top 50 innovation-intensive clusters. Overall innovation output has grown significantly, with India emerging as a key global player in intellectual property.
In 2024, India ranked fourth globally in trademark filings, sixth in patents, and seventh in industrial designs. The survey also underscored advancements in the semiconductor sector, reporting approval of ten semiconductor manufacturing and packaging projects across six states, with a total investment of around ₹1.60 lakh crore as of August 2025.
