India has made significant strides in its innovation ecosystem, rising to the 38th spot in the Global Innovation Index 2025 from 66th in 2019, as per the Economic Survey 2025-26 presented in Parliament by Finance Minister Nirmala Sitharaman. The survey emphasizes the government’s efforts in manufacturing, research, startups, and technology, positioning India as a burgeoning global hub for innovation and industrial growth.
The Production Linked Incentive (PLI) Scheme has played a pivotal role in enhancing domestic manufacturing, particularly in the smartphone sector. This initiative has attracted numerous global mobile phone companies to shift their production to India, transforming the nation into a significant manufacturing destination.
By September 2025, investments exceeding Rs 2 lakh crore under the PLI scheme have resulted in additional production and sales surpassing Rs 18.70 lakh crore. Moreover, the scheme has created employment opportunities for over 12.60 lakh individuals, both directly and indirectly.
India now leads in innovation among lower middle-income nations and tops the Central and Southern Asia region. Notably, cities like Bengaluru, Delhi, and Mumbai are recognized as top 50 innovation-intensive clusters globally, reflecting the country’s enhanced innovation output.
The Economic Survey highlights India’s growing prominence in intellectual property, ranking fourth in trademark filings, sixth in patents, and seventh in industrial designs worldwide in 2024. The semiconductor sector has also witnessed substantial progress, with ten approved semiconductor projects across six states by August 2025, attracting investments totaling around Rs 1.60 lakh crore. The government’s initiatives like the India Semiconductor Mission and Semicon India program aim to establish a comprehensive domestic semiconductor ecosystem.
