Summary
India climbs to 38 on WIPO’s Global Innovation Index 2025, powered by digital services, venture capital depth, and vibrant clusters in Bengaluru, Delhi, and Mumbai. Yet early-stage funding, manufacturing R&D, broadband quality, and IP uptake lag. Moving up the league table needs sustained public R&D, simpler IP, and wider tech adoption beyond metros.
On 15th September, the Global Innovation Index 2025 was published by the World Intellectual Property Organisation (WIPO). In the report, India is ranked 38th in the Global Innovation Index 2025, a rank higher than the previous year. Like earlier, India continues to lead among lower middle income economies.
According to the report’s findings, India’s performance is driven by its business sophistication, knowledge creation, education systems, and the strength of its innovation clusters led by Bengaluru, Delhi, Mumbai and Chennai. The report also states that India ranks first globally for ICT services exports, fourth for late stage venture capital deals, eighth for intangible asset intensity and eleventh for unicorn valuations.
What India Has Done Right
According to the report, India’s most visible strength lies in its ability to create skilled talent and export digital services at scale. Its IT and digital economy are strong enough to withstand global slowdowns and continue to grow. The presence of four Indian innovation clusters in the global top 100, with Bengaluru rising to 21st, Delhi to 26th, and Mumbai to 46th, shows that the country is building centres of innovation that rival global hubs.
The report also states that late stage venture capital deals are helping startups grow into unicorns, digital public infrastructure such as UPI has made doing business faster and cheaper, and government initiatives like Startup India have encouraged entrepreneurship. As per the Report, India is publishing more scientific research and filing more patents under the Patent Cooperation Treaty compared to previous years.
Where India Needs to Improve
Talking about problems, the Report states that the global innovation investment growth is at a historically low level and India’s growth is fragile. According to the report’s findings, venture capital activity outside AI has slowed and this affects India as well. Early stage funding is weaker than what is required to maintain a healthy startup pipeline, and technology adoption is not uniform.
The report further states that while connectivity has improved, quality broadband is still limited in many towns and rural areas. This limits the spread of innovation beyond metros.
The Report also points out that India’s performance in manufacturing R&D, hardware innovation, and clean technology remains low for an economy of its size. Additionally, as per the Report, patent filings, though rising, are far below potential. Many entrepreneurs do not secure legal protection for their ideas. Moreover, the Report states that public investment in research and infrastructure in India continues to be well below the level of global leaders, which affects deep technology innovation.
What Government and Industry Can Do
The report states that India must strengthen its innovation ecosystem if it wants to move to a higher league. Public spending on research and development should increase, not just in defence and space but also in healthcare, Green energy and manufacturing. The Report further adds that policies that encourage domestic venture funds to take early stage risks can bring more startups to life.
Additionally, the report suggests that patenting and IP protection systems need to be made faster and simpler to encourage more filings. Education must focus on research, design, and innovation, not just coding and test preparation. Small businesses and regional enterprises should be helped to adopt technology, and innovation cannot stay limited to a few metro cities.
Conclusion
As per the report, India’s rise to rank 38 is a result of its strengths in digital services, startup growth, and knowledge creation. But the report also makes it clear that weak funding for early stage startups, slow technology adoption outside cities, low manufacturing innovation, and underused IP systems are holding the country back.
India’s next jump in ranking will depend on whether it can convert its digital strength into a broad-based innovation economy. That will need sustained investment, wider technology adoption, and a focus on research that produces not just software but also hardware, clean energy solutions, and intellectual property.
WIPO’s Global Innovation Index 2025 report can be accessed here.
Disclaimer
This case blog is based on the author’s understanding of the judgment. Understandings and opinions of others may differ. An AI application was used to generate parts of this case blog. Views are personal.
