The Next Frontier in India’s Innovation Strategy

Syllabus: GS3/ Science and Technology

Context

  • India’s rise in the Global Innovation Index must now be matched by stronger home-grown R&D, business sophistication, and emphasis on domestic intellectual property ownership.

About

  • Global Innovation Index (GII) is a metric of R&D output maintained by the World Intellectual Property Organization. 
  • India was ranked 81st globally in the GII 2015, and rose to 38th rank in 2025.
    • India also holds the top position among lower-middle-income countries and within the Central and Southern Asian region.
    • Since 2015, the Indian government’s sustained encouragement of the research and development (R&D) ecosystem, along with new science-backed policies.
  • India’s Ambitions: The Indian government aims to ascend among the leading nations in the GII. 
    • Govt. is investing in venture stakes in strategic technology sectors such as semiconductors, artificial intelligence, and space. 
    • The approximately US$10 billion Anusandhan National Research Foundation Fund is expected to propel R&D financing across various academic and scientific disciplines.

Areas India Needs to Improve in

  • The six other categories in the GII country rankings suggest considerable scope for improvement. 
    • These are: Knowledge and Technology, Creative Outputs, Human Capital and Research, Institutions, Infrastructure, and Business Sophistication. 
    • India ranks below its overall position of 38th in five of these six categories.
  • The key to improving performance across these categories lies in strengthening the ‘Business Sophistication’ of the country’s R&D ecosystem.
  • The metrics within the GII’s Business Sophistication category are subdivided into three distinct sub-categories: 
    • Knowledge Workers, which measures the share of employment engaged in knowledge-intensive activities; 
    • Innovation Linkages, which assesses collaboration between the public and private research sectors; 
    • and Knowledge Absorption, which includes indicators such as foreign direct investment (FDI) inflows, high-technology imports, information and communication technology (ICT) services imports, and payments for intellectual property, expressed as proportions of total trade. 

Concerns Needs to be Addressed

  • Patent Filing: The quantity of patents filed should not be regarded as the sole objective, despite its influence on India’s overall GII ranking.
    • An increase in the number of patents granted in India, as well as in high-impact patents, should become the next shared objective. 
  • Technological Innovation: The technological interventions needed must emerge from India’s own R&D ecosystem, foreign innovation will not solve India’s challenges and security threats.
  • Funding Constraints: Despite robust government support, private sector investment in R&D in India remains limited compared to global benchmarks, constraining large-scale innovation.
  • Talent Retention Challenges: The brain drain persists, as skilled researchers are often drawn abroad by better infrastructure, funding, and career advancement opportunities.
  • Limited University-Industry Collaboration: Weak links between academia and industry hinder commercialization of research.
  • Skilled Workforce Deficit: Shortage of trained R&D professionals in deep-tech and interdisciplinary fields.

Major Initiatives taken by the Government

  • Research, Development and Innovation (RDI) Scheme: Approved with a ₹1 lakh crore corpus, this scheme aims to energise private-sector R&D and deep-tech startups.
    • It offers long-term, low- or zero-interest loans, equity investments, and funds a new Deep-Tech Fund of Funds via the Anusandhan National Research Foundation (ANRF).
  • Anusandhan National Research Foundation (ANRF): The ANRF established in 2023, provides high-level strategic direction for research, innovation, and entrepreneurship in science and technology.
    • The Foundation aims to mobilise funds amounting to ₹50,000 crore during 2023–28 through multiple streams, including the ANRF Fund, Innovation Fund, Science and Engineering Research Fund, and Special Purpose Funds. 
  • National Geospatial Policy, 2022: It seeks to position India as a global leader in the geospatial sector by 2035.
    • The policy liberalises access to geospatial data, encouraging its use in governance, business, and research. 
  • Indian Space Policy, 2023: It builds on the space reforms introduced in 2020, which opened the domain to non-governmental entities for end-to-end participation.
    • It aims to enhance space capabilities, promote a flourishing commercial space industry, and foster collaboration between public and private entities. 
  • National Quantum Mission: Allocated ₹6,003.65 crore for 2023–31, to advance quantum technologies through scientific and industrial R&D.
  • BioE3 Policy, 2024: It encourages the creation of Biomanufacturing and Bio-AI hubs, along with a national Biofoundry network, to accelerate technology development and commercialisation.
  • National Supercomputing Mission (NSM): Launched in 2015, the initiative empowers universities, research institutions, and government agencies with state-of-the-art supercomputing systems connected through the National Knowledge Network.
  • India Semiconductor Mission (ISM): Established in 2021, the mission seeks to build a robust ecosystem for semiconductor and display manufacturing.
    • India has already approved 10 semiconductor projects across six states, including the first commercial Silicon Carbide fabrication facility in Odisha. 
  • India AI Mission: The IndiaAI Mission embodies the vision of “Making AI in India and Making AI Work for India.”
    • It is advancing rapidly, having already increased computing capacity from an initial target of 10,000 GPUs to 38,000 GPUs, ensuring accessible AI infrastructure for startups, researchers, and industries. 
  • Atal Innovation Mission (AIM): To foster innovation at the grassroots level by providing support to students, startups, and entrepreneurs. 
  • The National Mission on High-Yielding Seeds will focus on strengthening the research ecosystem and developing high-yielding, pest-resistant, and climate-resilient seeds, aligning with DBT’s efforts in agricultural biotechnology.
  • The Seaweed Mission and Learn & Earn Program empower women entrepreneurs, supporting economic inclusion. 

Way Ahead

  • For India to enter the top 10 of the GII, its science and technology (S&T) policymakers must make fundamental changes to the country’s approach to innovation. 
  • India must improve its performance across the individual indicators underpinning the overall GII ranking.
  • India should strengthen business sophistication within its innovation ecosystem.
  • Ensure that domestic and indigenous intellectual property applicants fare better.

Source: ORF

 

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