India Climbs To 38th Spot in Global Innovation Index 2025

India’s innovation ecosystem has recorded steady progress over recent years, according to the Economic Survey. The country moved up to the 38th position in the Global Innovation Index (GII) 2025, improving from 66th in 2019.

The Survey noted that sustained government efforts across manufacturing, research, technology and startups have contributed to this rise. It highlighted India’s emergence as a growing global centre for innovation and industrial development.

Innovation Ranking Strengthened by Policy Support

The Economic Survey stated that India’s overall innovation capacity has improved significantly during the past few years. It attributed the rise to targeted initiatives supporting research, technology development and manufacturing growth.

The Survey noted that India now leads among lower-middle-income economies in innovation performance. It also reported that the country ranks first within the Central and Southern Asia region, reflecting strong regional leadership.

PLI Scheme Drives Manufacturing and Job Creation

According to the Survey, the Production Linked Incentive (PLI) Scheme has played a major role in strengthening domestic manufacturing. It stated that the smartphone sector, in particular, has seen substantial growth due to increased production by global mobile phone companies shifting operations to India.

Investments under the scheme crossed ₹2 lakh crore by September 2025, contributing to additional production and sales worth over ₹18.70 lakh crore. The programme has also generated employment for more than 12.60 lakh people, both directly and indirectly.

Innovation Hubs Emerge Across Major Indian Cities

The Economic Survey observed that Bengaluru, Delhi and Mumbai are now counted among the world’s top 50 innovation-intensive clusters. It stated that innovation output across the country has increased considerably in recent years.

The Survey also noted that India has become a significant global player in intellectual property, supported by rising filings across key categories. In 2024, the country ranked fourth in trademark filings, sixth in patent filings and seventh in industrial design registrations worldwide.

Semiconductor Investments Gain Momentum

The Survey reported strong progress in India’s semiconductor sector, supported by new manufacturing and packaging proposals. As of August 2025, ten semiconductor projects had been approved across six states.

These projects represent total planned investments of around ₹1.60 lakh crore. The expansion underscores India’s effort to strengthen domestic semiconductor capabilities and reduce reliance on imported components.

Read More: India Projects 6.8%–7.2% Growth In FY27 As Economic Survey 2026 Highlights Macro Stability.

Conclusion

India’s improved ranking in the Global Innovation Index 2025 reflects steady gains supported by government-led industrial and technological initiatives. The Economic Survey indicates that higher manufacturing output, stronger intellectual property activity and large-scale semiconductor investments have contributed to this progress.

Major cities have also emerged as important global innovation hubs. The overall improvement highlights the country’s expanding capacity for innovation-driven economic growth.

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