India Climbs to 38th Rank in the Global Innovation Index 2025

— by vishal Sambyal

India rises to 38th in the Global Innovation Index 2025, strengthening its position as an innovation leader in Asia despite challenges in R&D and infrastructure.

Introduction: A Step Forward in Innovation

India’s innovation engine continues to gain momentum. In the Global Innovation Index (GII) 2025, released by the World Intellectual Property Organization (WIPO), India moved up one spot to secure the 38th rank among 139 economies worldwide. The achievement reinforces India’s growing reputation as a hub for technology, startups, and knowledge-driven growth, even as it grapples with structural challenges.

Context & Background: Understanding the Global Innovation Index

The Global Innovation Index (GII), now in its 18th edition, has become a cornerstone of economic policymaking since its inception in 2007. Published annually by WIPO in partnership with the Portulans Institute, the index ranks nearly 140 economies based on their innovation ecosystems, using 78 indicators.

These indicators span research and development (R&D) spending, venture capital activity, intellectual property filings, and high-tech exports. The GII is divided into two sub-indices:

  • Innovation Input Sub-Index: Institutions, human capital, infrastructure, market sophistication, and business sophistication.
  • Innovation Output Sub-Index: Knowledge & technology outputs and creative outputs.

For policymakers and business leaders, the GII serves as the benchmark resource to evaluate strengths, identify weaknesses, and design reforms for sustainable innovation-driven growth.

Main Developments: India’s Rise Amidst Global Slowdown

India’s 38th rank marks another year of steady progress, consolidating its position as the top performer in Central and Southern Asia and the best among lower middle-income economies.

Globally, Switzerland retained its crown as the world’s most innovative nation for the 15th consecutive year, followed by Sweden and the United States. Other notable performers include South Korea, Singapore, and China — the latter breaking into the global top 10 for the first time.

The 2025 report also highlighted pressing concerns:

  • Global R&D growth slowed to 2.9% in 2024, the weakest since 2010, with a further decline to 2.3% projected for 2025.
  • Corporate R&D spending stagnated at just 1% growth due to inflation, with tech-heavy firms in AI, software, and pharma still expanding, while automotive and consumer goods companies cut back.
  • Patent activity rebounded slightly, with South Korea leading growth, though the U.S., Japan, and Germany saw declines.
  • Technological progress advanced in fields like battery storage, genome sequencing, and supercomputing, but adoption in robotics and electric vehicles slowed.

Expert Insight: India’s Innovation Edge

Experts note that India’s strengths lie in scale, entrepreneurship, and commercialization of knowledge. A thriving startup ecosystem, backed by late-stage venture capital financing, unicorn creation, and ICT service exports, has propelled the country forward.

“India’s progress is a reminder that innovation is no longer confined to high-income economies. By leveraging its large talent pool and startup momentum, India has become a model for middle-income economies aiming to overperform on innovation,” said a WIPO analyst in the report.

However, concerns remain. India’s R&D spending is just 0.65% of GDP (2020 data) — far lower than advanced economies. Additionally, infrastructure gaps continue to slow down innovation diffusion across industries and regions.

Regional Leadership: Clusters Driving Growth

India’s innovation landscape is increasingly shaped by regional clusters. According to the GII 2025, four Indian cities feature in the global top 100 innovation clusters:

  • Bengaluru (21st)
  • Delhi (26th)
  • Mumbai (46th)
  • Chennai (84th)

These hubs combine universities, research institutions, venture capital firms, and tech companies to create synergistic ecosystems. Bengaluru and Delhi, in particular, stand out for their venture capital intensity and startup activity.

Impact & Implications: What This Means for India

India’s steady rise in the GII has several implications:

  • Global Positioning: Cementing India’s status as an innovation leader in Asia and among developing economies.
  • Economic Growth: Strengthening India’s tech-driven sectors such as ICT, biotech, and AI-driven services.
  • Policy Priorities: Urging policymakers to increase R&D spending, build stronger infrastructure, and support commercialization of indigenous research.
  • Private Sector Push: Encouraging corporates to invest more aggressively in R&D to maintain competitiveness in global markets.

For the global community, India’s innovation growth offers a blueprint for inclusive development, where emerging economies can leapfrog into global leadership through targeted policies and ecosystem-building.

Conclusion: The Road Ahead

India’s climb to the 38th rank in the Global Innovation Index 2025 is both a validation of progress and a reminder of unfinished business. With robust entrepreneurship, ICT exports, and strong startup financing, India is charting a path toward innovation-led growth. Yet, bridging gaps in R&D spending and infrastructure remains crucial.

If India sustains its momentum, it not only strengthens its domestic economy but also positions itself as a key contributor to global innovation in the decades ahead.

 

Disclaimer: This article is based on publicly available information from the Global Innovation Index 2025 and is intended for informational and journalistic purposes only.